Title : The comparative analysis of sustainability reporting strategy: A case study of bp and shell based on esg frameworks
Abstract:
The increasing importance of Environmental, Social, and Governance (ESG) reporting has transformed sustainability disclosure into a strategic mechanism for corporate legitimacy, stakeholder engagement, and long-term value creation. Within the global energy sector, sustainability reporting has become particularly significant due to mounting regulatory pressure, climate-related risks, investor scrutiny, and the global transition toward low-carbon economies. This study provides a comparative analysis of the sustainability reporting strategies of BP and Shell based on their 2025 reporting-cycle disclosures and ESG frameworks. The research adopts a qualitative comparative case study methodology supported by stakeholder theory, legitimacy theory, and framing theory to evaluate how both corporations communicate sustainability priorities, climate transition strategies, governance structures, and ESG performance.
The study analyzes the extent to which BP and Shell align with major ESG frameworks, including the GHG Protocol, ISSB/IFRS Sustainability Standards, TCFD recommendations, EU Taxonomy, ESRS, and GRI standards. Findings indicate that although both companies maintain extensive ESG disclosure systems and continue to position themselves as participants in the global energy transition, significant differences exist in strategic framing, transition ambition, governance integration, and disclosure transparency. Shell demonstrates relatively stronger continuity in net-zero communication and regulatory alignment, whereas BP’s 2025 reporting reflects a more commercially oriented strategic recalibration emphasizing energy security and hydrocarbon investment expansion alongside sustainability commitments. The study concludes that sustainability reporting in the energy sector increasingly functions not only as a compliance mechanism but also as a strategic communication instrument used to shape stakeholder legitimacy and investor confidence.
Keywords: ESG reporting, sustainability reporting, BP, Shell, ESG frameworks, climate governance, GHG Protocol, TCFD, EU Taxonomy, legitimacy theory, framing theory
