TOPIC: Impact of CSR in Environment Sustainability of the Energy Sector Organisation

Submitted to:
Submitted by:
Module code: FINM075
Module Name: Major Project (Standard)
Student ID:20421001
Table of Contents
Table of Contents
ARTICLE..................................................................................................................................2
Introduction..............................................................................................................................2
Aims and Objectives............................................................................................................3
Research Question................................................................................................................4
Literature Review......................................................................................................................4
Introduction..........................................................................................................................4
Concept of CSR and its role in the environmental sustainability of the Energy sector 4
Analysis of key issues of UK energy sector in relation to CSR measures.......................6
Analysis of the CSR efforts made by UK energy sector firms in maintaining
environmental sustainability...............................................................................................6
Identification of the critical issues while implementing advanced CSR strategies in
context to environmental sustainability.............................................................................8
Summary...............................................................................................................................9
Conclusion and Recommendation.........................................................................................11
Conclusion...........................................................................................................................11
Future Work.......................................................................................................................11
References...............................................................................................................................13
PORTFOLIO...........................................................................................................................17
Research Methodology............................................................................................................17
Research Paradigm............................................................................................................17
Research Approach............................................................................................................18
Research Design.................................................................................................................19
Research Method................................................................................................................19
Data Collection Method.....................................................................................................20
Inclusion and Exclusion of Data.......................................................................................20
Data Extraction and Synthesis..........................................................................................21
Ethical Considerations.......................................................................................................21
Research Limitations.........................................................................................................22
Summary.............................................................................................................................23
Data Analysis, Findings and Discussion...............................................................................24
Introduction........................................................................................................................24
Qualitative Analysis...........................................................................................................24
1
 Thematic Content Analysis and Findings........................................................................25
Theme 1: Analysis of CSR and its key drivers...............................................................25
Theme 2 Significance of Energy sector of the UK and CSR development...................25
Theme 3: Key issues related to environmental sustainability in the Energy sector.....30
Theme 4: CSR measures for ensuring environmental sustainability in the Energy
sector................................................................................................................................30
References...............................................................................................................................32

2
 ARTICLE
Introduction
The first section of the article includes a brief overview of the sextions presented in the
article and portfolio. It also includes a systematic presentation of the aims, objectives and
questions that will be addressed in the article and portfolio. The chapter also includes a
background of the concepts that presents a clear view of various dimensions associated with
the selected area.
Corporate Social Responsibility (CSR) is articulated as the sense of concern and
obligation in the company operations in context to the social and environmental impacts
(Stjepcevic and Siksnelyte, 2017). CSR is an essential factor that assists a company in taking
ethical and sustainable actions that will result in mutual benefits for both business and
society. In the current business landscape, an organisation needs to operate in a manner that
reflects social responsibility, however, it is not a legal necessity but acts as a vital component
for success. For instance, as per the Forbes report, 61% of the investors believe that
businesses with effective CSR strategies showcase ethical corporate behaviour which in long
run reduces the investment risk (Forbes, 2021). In addition to this, CSR strategy promotes
ideas of compassion and consideration in the business plans hence it helps in fostering a more
positive and strong relationship with the customers (Garrido Azevedo and Matias João Carlos
O, 2017). In the modern business era, it is expected from the businesses to operate
responsibly while making strategies for various operations like branding, promotion,
manufacturing and distribution etc. it is important to note that investing in wider issues rather
than focusing on specific ones that would add value to the profit margins will attract an
audience for the business.
In special context to the energy sector, it can be noted that the companies are facing
societal challenges like employment, scarcity of resources, pollution, climate change etc. As
per the views of the environment & government organisations and citizens, CSR is
considered the duty of energy companies (Statista, 2021). Hence a business or a company
functioning in the energy sector should consider the environmental, economic and social
impacts of its actions while making decisions. In this regard, the current report focuses on
analysing the role of CSR in environmental sustainability in the energy sector of the UK.
From the last two decades, it can be seen in the government policies that Europe is taking
considerable actions in context to the CSR development. The energy demand is continuously
increasing in Europe which has increased the pressure in context to the climate changes
issues which are strongly linked with the efficient use of energy resources. All the sectors of
3
the UK energy sector are majorly affected by societal and environmental challenges.
However, the Energy sector significantly adds to the UK economy as it consists of 2.1% of
GVA (Gross value added) (GOV.UK., 2021).

Figure: Energy sector contribution to the GVA from the year 1980 to 2020.
Source: (GOV.UK, 2021)

In addition to this, the energy sector holds 7.3% of the total investment and 26.4% in
context to industrial investment. In the year 2020, the investment in the energy sector was
lower in contrast to 2019 due to the COVID-19 pandemic(GOV.UK., 2021).

4
 Figure: Investment in Energy Sector from the year 2005 to 2020
Source: (GOV.UK, 2021)

The energy sector currently employs more than 181,000 employees that are directly
employed which consist of 6.4% of the total industrial employment. In addition to this, the
sectors also employ people indirectly for instance in support of causes like UK Continental
Shelf production. `

5
 Figure 3: Energy Sector employment trends
Source: (GOV.UK, 2021)
The oil and gas sector is accounted as the second-largest contributor in the Energy sector
of the UK. However, due to the COVID-19 pandemic overall prices and production fell but it
did not affect the oil and gas sector(GOV.UK., 2021). The total production fell by 3.1 % in

6
the year 2020 in context to the primary fuels.

Figure: Production of Primary fuels from 1990 to 2020

Source: (GOV.UK, 2021)

7
 Figure 5: Overview of energy consumption in the UK
Source: (GOV.UK, 2021)

It can be noted from the above figure that over the past decade overall energy sector has
shown significant growth in context to the environmental impact such as consumption of
bioenergy and waste generation(However in context to areas like temperature control,
consumption of primary electricity and natural gas needs to improve while taking considerate
and efficient CSR measures. In addition to this, all the chart presented above from the
government report clearly shows that the energy sector acts as a crucial player in the global
economy of the UK hence the government should devise actions to promote the CSR actions
taken by the energy sector firms.
In this regard, the article and portfolio will evaluate the changes in perceptions of CSR as
a concept in special connection to the UK energy sector. In modern times, the expectations
from a business have completely changed with the evolution of the consumer consciousness
towards social and environmental issues. Developments in CSR whether in an international
or national context are becoming an essential component or part of the transnational or
national policy agendas that affects the decision-making process for the business (Underwood
and Murray, 2012). Businesses operating in the energy sector of the UK are adopting CSR
strategies and norms as a core part of their business model (Statista, 2021). CSR acts as a
crucial factor that can help businesses in the integration of environmental and economic goals
(Adi, Grigore, and Crowther, 2015). UK energy sector has managed to achieve a decline in
carbon dioxide emission generated from the energy supply sector since the year 1990. The

8
carbon emission in 1990 was accounted for 278 million metric tons which decreased to 95.8
MtCO2e in 2019 (Worldbank, 2021). This showcases that the energy sector is focusing on
reducing environmental impacts by taking considerable actions. The energy sector is majorly
divided into five sectors are an upstream sector that involves firms working in oil drilling and
natural gas operations. The sector is the midstream sector that includes the process and
pipelines. Refineries and chemical firms are under the downstream sector on the other hand
electricity and natural gas fall under the utility firms. The last segregation is for the integrated
firms (Forbes, 2021).
The article and portfolio aims to identify the role and involvement of CSR in the UK
energy sector while making decisions and plans for environmental sustainability. In the past
few decades, the dimesons for CSR has changed in the global context hence it became
essential for business functioning in the energy sector to innovatively include environmental
sustainability in their business plans to achieve long term success in the global market. The
secondary rationale of the study is to bridge the existing gap in knowledge of the role played
by CSR in ensuring fulfilment of the environmental sustainability issues of the energy sector.
The article and portfolio will add value to existing knowledge about the changing dynamics
and role of CSR. Additionally, the analysis will also shed some light on various issues that
might lead to the slow progression of sustainability measures taken to promote environmental
sustainability.
Aims and Objectives
Aim: The aim is to analyse the role and development of CSR in the context of the
environmental sustainability of the UK energy sector.
Objectives:
● To analyse the role of CSR in the energy sector of the UK.
● To identity and illustrate various critical issues of CSR in the UK energy sector.
● To classify the key drivers of CSR in the energy sector
● To study the development of CSR as a concept in the energy sector
● To examine the efforts made by UK energy sector firms in maintaining environmental
sustainability
● To identify the critical issues faced by the energy sector while implementing
advanced CSR strategies.
Research Question
What is the role of CSR in the energy sector of the UK in maintaining environmental
sustainability?
9
Research Gaps
The following are the research gaps present in the current study:
 There is an evidence gap in the research as the data analysis is solely based on the
qualitative analysis of various literature sources. In addition to this while exploring
the impact of CSR in context to the UK energy sector some of the area remained
unexplored as the data collection was based on qualitative methods.
 The use of qualitative method also created a knowledge gap in the literature review
section as with the incorporation of qualitative studies and data, various other
variables related to the area of study can be explored and examined.
 Another limitation of using desk research method, is the unreliability od the
information and data as it risk to rely on outdated data or statistics presented in
government or annual reports of the companies. In addition to this, it is difficult to
find specific information related to the study based in the data collected from desk
research method. This can impact the reliability and validity of the outcomes.

10
 Literature Review
This section of the article includes a detailed analysis of various theories and concepts given
by different literature sources.
Introduction
In the current business world, energy companies face a variety of societal challenges
such as employment, climate change, employment, and scarcity of resources. Hence it is
evident that businesses functioning in the energy sector consider CSR as a crucial component
of their business strategy making and formulation (Helfaya and Whittington, 2019). One
other factor that acts as a significant player for the business conduction for energy firms is the
increasing expectations of the customer in terms of their responsibility towards the society as
a whole (The Gurdian, 2021). In this regard, the following section examines the role of CSR
in the current business environment for the energy sector, especially in the UK. In addition to
this, the Literature review section will also include a comprehensive analysis of the various
relevant sources in this specific area of study. The section also involves a variety of
theoretical concepts that will add to the findings.
Concept of CSR and its role in the environmental sustainability of the Energy sector
As per the views of Mac Cormac and Haney (2012) and Gupta (2018), CSR is defined
as a strategic tool that has gained prominence in the business world in the last few decades as
it is now considered a crucial part of the transitional and national policy-making process. The
governments and business organisations are using CSR as a policy agendas to achieve their
gains and objective, hence it creates more pressure on the firm functioning in the energy
sectors.
In support of the above views Park, Choi and Kim (2012) assert that CSR being a core part of
any business model and other institutions like consultancies, social conferences have played a
major role in captivating CSR in the energy sector. Additionally, the author adds in a special
context to the UK as a country that has always been considerate about issues like CSR.
Ethical business actions play a vital role in the foundation of the industrial landscape in the
UK as reflected in the policies related to industrial welfare, labour problems and returning
value to different stakeholders. Further, the author adds that the UK has the strongest culture
of CSR as compared to other countries involved in energy production. The three pillars of
CSR sustainable development in context to the energy sector are economic, social and
environmental issues (Edfenergy, 2021 and Scottishpower, 2021 ).

Philanthropic Ethical Environmental Economic

11
 Responsibility responsibility & Responsibility Responsibility
(Being a proficient Legal Responsibility (Conserving (Being profitable)
corporate citizen) (Obeying Laws) environment)
(Being ethical)

Figure : Four levels of CSR

Source: (Ordóñez-Castaño et al., 2021)
Gligor-Cimpoieru et al. (2017) believe that it is necessary to understand the core of
CSR as a notion to apprehend its role in environmental sustainability, especially in the energy
sector. The literature further explains that the energy demand is increasing worldwide both in
developing and developed nations. Hence it increases the pressure on CSR issues related to
the energy sector like climate change, CO2 emission, pollution etc. the business is sometimes
affected by the overwhelming pressure of issues like environmental stability and public
wellness. Thus, policymakers must devise mutually beneficial and rational policies for
attaining the objective of environmental sustainability in the UK (Inews, 2021; Sse Annual
Report, 2021).
Stjepcevic and Siksnelyte (2017) further add to the point discussed above that concept
and add that CSR has the capability of helping the energy industry in handling the pressures
from an external context. In addition to this, it is evident that energy production and
consumption is an unavoidable phenomenon as it is essential for both economic and social
development. The author further adds that the global population is expected to hit 9 billion by
the year 2050 hence to support economic progress and rebirth of industrial capacity energy
firms have to design a strong CSR system to handle issues like environmental sustainability
and greater usage of energy. In further support of the above analysis, Sekerka and Stimel
(2012) also add that CSR can also help energy firms to manage the issue of resource scarcity
in the coming times by handling concerns that might affect the attainment of pre-defined
goals.

Environment Community Marketplace Workplace

Figure 7 Core focus areas of CSR practices in the energy sector

Source: (Swaim et al., 2014; Prasad, Mishra and Bapat 2019)

12
Analysis of key issues of UK energy sector in relation to CSR measures
In the viewpoint of Kassinis et al. (2016), it has been noticed from the reviewing of
concepts and data presented by various authors that the environmental impact of the energy
sector of the UK is huge as natural resources and energy are two interconnected factors. It is
evident that is nearly impossible for the energy sector to function without impacting the
environment. Some of the major issues related to environmental sustainability concluded
from the analysis are thermal pollution, climate change, solid waste disposal and water
pollution. In special context to the UK, it was seen in the analysis that air pollutant emission
from fossil fuel was one of the key concerns related to the energy sector (Group.goodenergy,
2021).
Lu et al., 2019 shed light on one of the other concerns related to environmental
sustainability that creates controversies for the energy sector is the emission of greenhouse
gases from the burning of fossil fuels. In recent times there have been many cases of oil spills
on the body of water or earth that affects the sustainability goals for energy firms. The energy
sector of the UK is a vast area that involves a variety of operations hence the risk of affecting
the environment is also relatively higher as compared to the other sectors of business. For
instance, mining operations such as coal mining pollutes water and affects the groundwater
flow. In addition to this coal mining also requires energy firms to take preventive measures to
stop the issues like acid mine drainage. One of the other issues related to coal mining is that it
requires the removal of coal and a large area of the earth.
Analysis of the CSR efforts made by UK energy sector firms in maintaining
environmental sustainability
BBC News Report (2021) states that the UK energy sector is meeting its sustainability
goals to minimise the impact of its business while adopting various CSR strategies. It can be
stated that taking environmental initiative is viewed as the most lucrative option for inducing
economic stimulus for the business while attaining CSR goals. In views of Prasad, Mishra
and Bapat (2019) environmental sustainability initiatives taken by the CSR department of a
firm plays a key role in capturing the competitive landscape and improvising the operational
quality of the business. In addition to this, CSR also helps the business to rethink and
innovate their product design to deliver desired sustainability results for both citizens and
government.
The report published in Forbes, 2021 lays out some of the other initiatives taken by
other big energy firms that are majorly focused on delivering value to environmental
sustainability. One of the ley actions taken by these firms is adopting an innovative and
13
technologically advanced CSR approach that helps the firm to keep their option open while
regulating operations. In addition to this, Bernal-Conesa, Nieves Nieto and Briones-Peñalver
(2017) asserts that modern approaches to CSR also allow the firms to adopt and work on
pragmatic approach while working towards market reform. The author further elaborates on
this by adding that this specific policy allows the business to accommodate policy measures
specifically for attaining certain goals and objectives. On the other hand, it allows market
operations to work in maximum proximity.
Kim (2017); Zeisel (2020) add that it is necessary for energy UK firms to exploit win-
win opportunities by ensuring technical innovation through sustained R&D. In addition to
this one of the key factors that need to be included in the CSR strategies of the energy sector
organisation is fostering and sustaining the trust and understanding of the public towards the
firm. For instance, public reputation has saved market leaders like British Gas from various
sustainability controversies related to environmental issues (British gas, 2021). Currently, It
can be seen in the CSR strategies of the energy company that the business lays focus on areas
such as wind power, renewable energy, promotion of a brand image that relates to the citizens
and promoting new ideas of green energy. As per the company report, the UK is the world
leader in the context of sea-based wind farms, the business is supporting the nation in
generating more clean energy. The company claims to generate 10%of the total electricity to
be generated from wind farms by the year 2020 (British gas, 2021). It can be deduced from
the CSR strategies designed by British Gas as one of the leading companies of the UK energy
sector that it is necessary and critical for a business to incorporate CSR in their other business
functions to work an ethically right and profitable business environment.

14
 Figure: Top energy companies of the UK Energy Sector
Source: (Statista, 2021)
Identification of the critical issues while implementing advanced CSR strategies in
context to environmental sustainability
Centobelli et al. (2020) articulate that in the past year's energy companies of the UK
have faced a variety of issues while adopting CSR strategies. Many firms working in the
energy sector tend to adopt environmental sustainability strategy that helps a business to find
a vision and create shared objectives for the future. This involves devising a pathway to
advance the steps taken for sustainability across the business model. The strategy also guides
the council to outline measures and practices that need to be integrated into the operations to

15
achieve the desired goal. The author also indicates a key issue while following such strategy
and that is lack of long-term efficiency in the strategy design.
As per the annual report of Bulb company often businesses fail in following their
norms and rules in terms of environmental sustainability as the strategy design lacks and does
not incorporate critical aspects of CSR. Energy firms must bridge the gap in their existing
strategy design and formulation (Bulb.co.uk, 2021).
In further addition to the section, Forbes report adds that mitigation strategies for energy
conservation such as green energy is a prominent step taken by energy firms that supports the
aim of the UK government of achieving zero carbon emission y the year 2050 (Forbes, 2021).
Customers are more attracted to choosing a firm that has offers green renewable electricity or
vegan energy that does not involve the use of any animals in the process of producing energy.
As per the Forbes report published in the year, 2021 the best green energy suppliers in the
UK are companies like Bulb, Good Energy, Octopus Energy, OVO energy, Ecotricity, Pure
Planet, Outfox the Market, goto. energy and Octopus energy (Forbes, 2021). These
businesses have gained higher points in terms of green credentials that denote less CO2
emission, more use renewable energy and lesser nuclear waste. In addition to this, these
companies provide online energy saving advice to their customer as part of their CSR
programme and provide cheaper traffic to the customers. However, the companies listed
above face a common issue of greenwashing which involves an exaggeration of green
credentials by the business intending to attract customers. in addition to this due to the rising
prices the companies are facing operational and management challenges while enhancing the
involvement of environmental sustainability (inews, 2021, The Gurdian, 2021). In recent
times the UK government is working towards removing companies that tend to appear green
at their face value and is investing in firms that operate as per the regulations. One such
initiative is the Renewable Energy Guarantees of Origin (REGO) scheme that helps the
customer in judging the supplier while reviewing the proportion of energy produced from
renewable sources (Forbes, 2021). One issue in the REGO certification scheme is that some
of the firms have purchased a certain number of certificates to ensure a high rating as a 100%
green energy firm However, the government and energy sector are working towards
achieving the aim of controlling environmental sustainability through effective CSR
strategies (Forbes, 2021; Kludacz-Alessandri and Cygańska, 2021).
Summary
The above section involves discussion and investigation of various literature sources
and authentic reports on the selected area. It has been noted from the above discussion that
16
CSR in the modern business world can promote both economic and social dimensions for a
business. It has been noticed in the CSR strategies adopted by the biggest firms of the UK
that businesses are treating CSR as a tool to bridge the gap between sustainability and
business operations.

17
 Conclusion and Recommendation
Conclusion
This is the final chapter that will present the final summary of the analysis and data
collection. In addition to this, this chapter will also include a set of recommendations for
managing the sustainability issues in the energy sector. From the above analysis, it can be
deduced that the energy sector of the UK has faced a variety of issues related to
environmental sustainability for the last few decades. The energy sector organisations face
issues that have a long-run impact on their existence and successes such as safety risks,
environmental risks, reputational risks, and health risks. Therefore, it has been summarised
from the above analysis that in the current time's energy sector is expected to play a vital role
in issues line environmental sustainability however it is equally important to recognize the
crucial role government plays in the same process. From the analysis of various patterns of
citizens government and environmental organisation that they designed CSR as a duty for
energy hence, it becomes a duty for energy companies to act in a certain manner to sustain in
the market. It can be concluded the key drivers of CSR in the UK energy sector are a mix of
two core factors, which are requirements and incentives. The drivers of CSR are majorly
based on three groups or categories political, economic, and social drivers. It can be
summarised from the analysis of the drivers mentioned above that a company functioning in
the energy sector should understand the significance of economic, social, and environmental
impacts of their business activities.
It is recommended to the energy firms of the UK to analyse the key challenges and try
to use them as an opportunity while functioning in the energy sector. In addition to this, it can
be concluded from the above discussion that major challenges faced by the energy sector in
terms of environmental sustainability are unpredictable government regulations, heavy
investments in other sectors, misconduct, unclear agenda, affordability, competition, and
infrastructure issues. On the other hand, it has been identified that the energy sector also has
some opportunities that can be used to ease the operations related to environmental
sustainability. Some of them can be concluded as dividing the energy sectors as per the CSR
issue to identify the core issues and devise customised approaches.
Future Work
The present study incorporates a logical discussion on the contribution of CSR in
maintaining environmental sustainability for energy sector firms, especially in the UK. The
study also includes an analysis of various CSR strategies and models that can be used by
18
businesses in the current business landscape to ensure long term sustainability and economic
development. CSR is a multidimensional concept that can be further explored in terms of its
contribution to other aspects of sustainability in future work. In addition to this, in future
work, work can be done in evaluating the efficiency of various CSR models based on
sustainability issues. The use of the quantitative method for data analysis can be used in
future by interviewing executives working in the energy sector or by collecting sampling
pollution to attain valid quantitative aspects of the selected area.

19
 References

Adi, A., Grigore, G. and Crowther, D. (eds) (2015) Corporate social responsibility in the
digital age. First ed. Bingley, England: Emerald (Developments in Corporate Governance and
Responsibility, Volume 7)
BBC News. 2021. Four more UK energy suppliers go bust. [online] Available at:
<https://www.bbc.com/news/business-59137440> [Accessed 21 November 2021].
Bernal-Conesa, J. A., Nieves Nieto, C. and Briones-Peñalver Antonio Juan (2017) "Csr
Strategy in Technology Companies: Its Influence on Performance, Competitiveness and
Sustainability," Corporate Social Responsibility and Environmental Management, 24(2), pp.
96–107. doi: 10.1002/csr.1393.
Britishgas. 2021. Renewable energy - British Gas. [online] Available at:
<https://www.britishgas.co.uk/energy/guides/renewable-energy.html> [Accessed 21
November 2021].
Bulb.co.uk. 2021. Annual update for members 2019 | Blog | Bulb. [online] Available at:
<https://bulb.co.uk/blog/annual-update-for-members-2019> [Accessed 26 November 2021].
Burns, C. J. M., Houghton, L. and Stewart, H. (2020) "Sustainability - a Key to Australian
Finance Directors Improving Their Organisation's Csr Culture," Corporate Social
Responsibility and Environmental Management, 27(2), pp. 1164–1176. doi:
10.1002/csr.1870.
Centobelli, P. et al. (2020) "Evaluating Environmental Sustainability Strategies in Freight
Transport and Logistics Industry," Business Strategy and the Environment, 29(3), pp. 1563–
1574. doi: 10.1002/bse.2453.
Edfenergy.2021. [online] Available at:
<https://www.edfenergy.com/sites/default/files/ofgem_2020_css.pdf> [Accessed 26
November 2021].
Forbes. 2021. All You Need To Know About How The UK Energy Market Works. [online]
Forbes Advisor UK. Available at: <https://www.forbes.com/uk/advisor/energy/how-the-uk-
energy-market-works/> [Accessed 21 November 2021].
Forbes. 2021. Best Green Energy Suppliers Of 2021. [online] Forbes Advisor UK. Available
at: <https://www.forbes.com/uk/advisor/energy/green-energy/> [Accessed 21 November
2021].
Forbes. 2021. Council Post: The Growing Importance Of Social Responsibility In Business.
[online] Forbes. Available at:
20
<https://www.forbes.com/sites/forbesbusinesscouncil/2020/11/18/the-growing-importance-
of-social-responsibility-in-business/?sh=1c9893a62283> [Accessed 14 November 2021].
Forbes. 2021. Failed UK Energy Suppliers Update, November 2021. [online] Forbes Advisor
UK. Available at: <https://www.forbes.com/uk/advisor/energy/failed-uk-energy-suppliers-
update/> [Accessed 21 November 2021].
Garrido Azevedo, S. and Matias João Carlos O (eds) (2017) Corporate sustainability : the
new pillar of the circular economy. Hauppauge, N.Y.: Nova Science Publishers (Business
issues, competition and entrepreneurship)
Gligor-Cimpoieru, D. et al. (2017) "Perceptions of Future Employees Toward Csr
Environmental Practices in Tourism," Sustainability, 9(9), pp. 1631–1631. doi:
10.3390/su9091631.
GOV.UK.. 2021. [online] Available at:
<https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_dat
a/file/1032260/UK_Energy_in_Brief_2021.pdf> [Accessed 14 November 2021].
GOV.UK.. 2021. [online] Available at:
<https://web.archive.org/web/20160115113454/https://www.gov.uk/government/uploads/syst
em/uploads/attachment_data/file/449102/ECUK_Chapter_1_-_Overall_factsheet.pdf>
[Accessed 14 November 2021].
Group.goodenergy. 2021. Good Energy Group PLC - Reporting & News - Results &
Presentations. [online] Available at: <https://group.goodenergy.co.uk/reporting-and-news-
centre/investor-presentations/default.aspx> [Accessed 26 November 2021].
Gupta, K. (2018) "Environmental Sustainability and Implied Cost of Equity: International
Evidence," Journal of Business Ethics, 147(2), pp. 343–365. doi: 10.1007/s10551-015-2971-
z.
Helfaya, A. and Whittington, M. (2019) "Does Designing Environmental Sustainability
Disclosure Quality Measures Make a Difference?," Business Strategy and the Environment,
28(4), pp. 525–541. doi: 10.1002/bse.2262.
inews. 2021. Who the 'Big 6' energy companies are and why gas prices have gone up.
[online] Available at: <https://inews.co.uk/news/uk/big-6-energy-companies-who-uk-biggest-
suppliers-gas-prices-why-gone-up-1213822> [Accessed 21 November 2021].
JKX Oil & Gas plc. 2021. [online] Available at:
<https://www.annualreports.com/HostedData/AnnualReports/PDF/OTC_JKXOF_2020.pdf>
[Accessed 26 November 2021].

21
Kassinis, G. et al. (2016) "Gender and Environmental Sustainability: A Longitudinal
Analysis," Corporate Social Responsibility and Environmental Management, 23(6), pp. 399–
412. doi: 10.1002/csr.1386.
Kim, H.-D. (2017) "Images of Stakeholder Groups Based on Their Environmental
Sustainability Linked Csr Projects: A Meta-Analytic Review of Korean Sport Literature,"
Sustainability, 9(9), pp. 1586–1586. doi: 10.3390/su9091586.
Kludacz-Alessandri, M. and Cygańska, M. (2021) "Corporate Social Responsibility and
Financial Performance among Energy Sector Companies," Energies, 14(19), pp. 6068–6068.
Mac Cormac, S. and Haney, H. (2012) "New Corporate Forms: One Viable Solution to
Advancing Environmental Sustainability," Journal of Applied Corporate Finance, 24(2), pp.
49–56. doi: 10.1111/j.1745-6622.2012.00378.x.
Ordóñez-Castaño Iván Andrés et al. (2021) "Voluntary Disclosure of Gri and Csr
Environmental Criteria in Colombian Companies," Sustainability, 13(10), pp. 5405–5405.
doi: 10.3390/su13105405.
Park, S.-J., Choi, S. and Kim, E.-J. (2012) "The Relationships between Socio-Demographic
Variables and Concerns About Environmental Sustainability," Corporate Social
Responsibility and Environmental Management, 19(6), pp. 343–354. doi: 10.1002/csr.284.
Prasad, M., Mishra, T. and Bapat, V. (2019) "Corporate Social Responsibility and
Environmental Sustainability: Evidence from India Using Energy Intensity As an Indicator of
Environmental Sustainability," IIMB Management Review, 31(4), pp. 374–384. doi:
10.1016/j.iimb.2019.07.014.
Scottishpower. 2021. [online] Available at:
<https://www.scottishpower.com/userfiles/file/2020_Annual_Report_and_Accounts_of_Scot
tish_Power_Limited.pdf> [Accessed 26 November 2021].
Sekerka, L. E. and Stimel, D. (2012) "Environmental Sustainability Decision-Making:
Clearing a Path to Change," Journal of Public Affairs, 12(3), pp. 195–205. doi:
10.1002/pa.1433.
Sse Annual Report. 2021. [online] Available at: <https://www.sse.com/media/jqcamklf/sse-
32693-annual-report-2020-web-1.pdf> [Accessed 26 November 2021].
Statista. 2021. UK: Big Six electricity generation profits 2019 | Statista. [online] Available at:
<https://www.statista.com/statistics/478088/generation-profits-big-six-energy-suppliers-
united-kingdom/> [Accessed 21 November 2021].

22
Statista. 2021. UK: energy supply sector CO2 emissions 1990-2019 | Statista. [online]
Available at: <https://www.statista.com/statistics/327059/co2-emissions-in-the-energy-
supply-sector-in-the-united-kingdom-uk/> [Accessed 14 November 2021].
Stjepcevic, J. and Siksnelyte, I. (2017). Corporate social responsibility in energy sector.
Transformations in Business & Economics, 16(1), p.40.
Stjepcevic, J., & Siksnelyte, I. (2017). Corporate social responsibility in energy sector.
Transformations in Business & Economics, 16(1), pp. 21-33.
Swaim, J. A. et al. (2014) "Influences on Student Intention and Behavior Toward
Environmental Sustainability," Journal of Business Ethics, 124(3), pp. 465–484. doi:
10.1007/s10551-013-1883-z.
The Gurdian.2021. Four UK energy suppliers collapse; BP sees high winter gas prices – as it
happened. [online] the Guardian. Available at:
<https://www.theguardian.com/business/live/2021/nov/02/bp-tight-gas-markets-profits-ftse-
sterling-supply-chain-factories-business-live> [Accessed 21 November 2021].
Underwood, S. and Murray, A. (2012) Social and sustainable enterprise : changing the nature
of business. Bingley, U.K.: Emerald (Contemporary issues in entrepreneurship research, v. 2)
Worldbank. 2021. Energy use (kg of oil equivalent per capita) | Data. [online] Available at:
<https://data.worldbank.org/indicator/EG.USE.PCAP.KG.OE> [Accessed 14 November
2021].
Zeisel, S. (2020) "Is Sustainability a Moving Target? A Methodology for Measuring Csr
Dynamics," Corporate Social Responsibility and Environmental Management, 27(1), pp.
283–296. doi: 10.1002/csr.1805.

23
 PORTFOLIO
Research Methodology
Researching any subject is a challenging task and requires the accomplishment of
multiple tasks that run parallel to each other. One of the most important tasks in this context
is the collection of data and other systematic literature to aid in addressing the research
objectives. This section is a significant part of the portfolio as it includes key research
methods and techniques used to analyse the data collected for analysis. This section also
includes a detailed presentation of ethical considerations that are considered during the
collection of data. Moreover, it is important to identify the correct methodology that would be
adopted too and as the research questions by collecting and analysing concerned data.
Alvesson and Sköldberg, 2009 defined research methodology as the technique used to
identify, and gather, evaluate, and analyze the information- qualitative or quantitative, to
answer the research questions. The authors further go on to and suggest that selection of an
apt methodology helps improve the overall degree of reliability and validity of the research
outcome. In this context, the methodology adopted in this research presents a systematic
analysis of the existing pool of knowledge- literature, as well as data in order to determine the
manner in which CSR policies adopted by an organization in the energy sector would help
further the cause of environmental sustainability. While the approach adopted in this research
is used to present a logical investigation of the study area, the core objective still focuses on
establishing a bridge between the research questions and the conclusions drawn thereafter by
focusing on the empirical findings. Furthermore, this section of the study will also focus on
illustrating the relevant sources and data.
Finally, the subsections of this chapter will present a comprehensive overview of
different elements of methodology, such as research paradigm, design, approach, and data
analysis methods used to address the research question. subsequently, this section will
conclude by shining a light on relevant ethical considerations and research gaps pertaining to
this research.
Research Paradigm
According to (Hesse-Biber, 2012), a research paradigm is defined as the set of values,
beliefs, and perspectives of a researcher based on which research is conducted. In this regard,
it is important to note that while undertaking research, the researcher adopts a common
approach based on which answers to research questions are articulated and logical
conclusions are grown. It is for this reason that a researcher needs to identify and select a
24
specific method and design to conduct a research study. Given the importance it holds to a
study, the research paradigm lays down the norms, rules, and common approaches adopted to
undertake the study. Of these, the most common research paradigms are interpretivism,
constructivism, and positivism. The interpretivism approach lays down a reality which, in
turn, may have multiple interpretations and therefore, is often viewed as a multi-layered
concept (Kuada, 2012). It is often used by researchers who focus on investigating human
experiences and social reality-based topics. The interpretivism paradigm further lens
subjectivity to different techniques of data interpretation. Constructivism, on the other hand,
is based on the notion that the construct of knowledge of different individuals and researchers
is commonly based on their understanding and beliefs of different subjects and reflects upon
their perceptions of reality. The positivism paradigm is typically thought of as somewhat of
an outcast approach as its scope is limited in the sense that knowledge acquisition can be
achieved only through experience and observation (Moustakas, 2020). As a result, positivism
is not taken into consideration while understanding the questions of this research.
In the context of this study, it is logical to adopt the interpretivism paradigm since it
focuses on the acquisition of theoretical, yet systematic answers to Complicated research
problems such as examining the impact of CSR policies on environmental sustainability in
the energy sector. It is important to note that adopting the interpretivism approach will be
important do this research since its findings cannot be generalized but still have a universal
application. The arguments presented in this research will require a comprehensive analysis
of many reports, peer-reviewed journals, and case studies to determine the currently prevalent
trends, practices, and complications pertaining to CSR practices. interpretivism, therefore, is
deemed to be the suitable paradigm as it would shine a light on subjective, as well as
descriptive aspects of the research topic.
Research Approach
Denzin and Lincoln, 2018 rightly point out that merely adopting a research paradigm
is not sufficient to define the approach to answer research questions. They suggest that while
the paradigm establishes the base approach of conducting research, it is equally important to
determine the logical flow of the work. It is for this reason that it is important to identify and
adopt A research approach. Moreover, adopting a logical approach helps the researcher in
underlining the understanding of the research topic while developing a conceptual framework
to lend credibility and depth to the research. Commonly, two types of research approach
exist- inductive and deductive research approaches. The inductive approach focuses primarily
on theory development by reasoning while the deductive approach focuses on analyzing the
25
existing knowledge and theories pertaining to the research question. The inductive approach
is useful in identifying the existing patterns, analyzing them, and drawing conclusions based
thereupon (Mackey and Gass, 2021). This research adopts an inductive approach and focuses
on establishing a comprehensive understanding of the research topic while driving logical
conclusions from the analysis of qualitative data used herein. While the use of an inductive
approach will not be sufficient to address the research question, a deductive research
approach will also be used to examine the existing pool of knowledge addressing the manner
in which CSR practices and policies affect the environmental sustainability of organizations
in the energy sector.
Research Design
Establishing the research design offers a framework for the entire study based on
which data collection and its evaluation is undertaken. There are a large number of research
designs that can be adopted including exploratory and descriptive research designs (Kumar,
2012). While the exploratory design focuses on obtaining insights to determine the
relationship between the chosen area of study and the variables pertaining to this field,
Descriptive design focuses selectively on a particular area of research (Bryman, 2015). In this
research, as a result, a descriptive research design is adopted as it will focus selectively on
determining the impact of CSR practices and policies on environmental sustainability.
Moreover, it will also play an important role in filling the existing gaps while at the same
time enhancing and broadening the existing awareness and pool of knowledge related to the
research question. The arguments presented in this research and the conclusions drawn from
them will play an important role in investigating the role and contribution of the government
and the organizations operating in the energy sector.
Research Method
Research methods refer to the specific procedures that determine the nature of a study
(Gupta, 2013). Developing research methods is a crucial part of a study as it helps in the
collection, analysis, and interpretation of data findings. Primarily, two research methods
exist- qualitative and quantitative. While the qualitative research method focuses on drawing
conclusions from the existing literature or developing new theories to achieve the research
objectives, the quantitative research approach follows more mechanistic procedures and
enables the quantification of data to test the hypothesis and, in turn, support or refute the
objectives (Dane, 2018). Based on the area of research for this study, along with the
objectives, the findings of this research will be qualitative in nature and would enable us to
establish a deeper understanding of the extent of impact CSR practices have on the
26
environmental sustainability of an organization. The qualitative approach will also
complement the inductive research approach perfectly, along with the secondary data
collection methods used in this research.
Data Collection Method
After the research paradigm and approach, the data collection method forms the most
important part of research methodology as it determines the nature of the data that is
collected to address the research questions. Not only does it involve the collection of relevant
data systematically, but also has multiple sources for relevant analysis. There are two main
sources of data- primary and secondary data. Typically, primary data is collected first-hand
by the researcher or the people to whom such researcher assigns the task of data collection.
Primary data collection is done from the field and requires supervision from an open
investigator. Primary data is unused, fresh, and is gathered with a specific agenda by
employing tools like surveys and questionnaires (Flick, 2020). Secondary data, on the other
hand, refers to old data which is readily available for data analysis depending on the nature of
the research study. In the context of the portfolio, the secondary data collection method is the
rational choice since there is a large abundance of data pertaining to this research topic. The
research has built a search strategy to find relevant pieces of information regarding the
selected research area . In addition to this the research includes development and
identification of key words that are CSR, Energy Sector UK, Sustainability and Green
Energy. These key words were used in the Boolean operator that helped in the identification,
collection of various data sources and attainment of productive results. The main sources of
data collection for the research are ResearchGate, government websites, World bank reports,
Statista, Forbes Report, Annual reports, BBC reports, Government reports, company
websites, annual reports, Google Scholar and Sage journals. The secondary data collection
method also includes data collection by employing tools reviewed articles and library
research. The analysis presented in this research is primarily based on sources included in
literature review, government reports and annual reports of an energy company .
In order to identify the number of studies used for the analysis, PRISMA (Preferred
Reporting Items for Systematic Reviews and Meta-Analyses) method was used to map out
the total number of sources identified, excluded and included and the core reasons for
exclusion the identified sources. This method helps significantly in improving the reporting
of identified sources in a study (Stovold et al., 2014).

27
 Prisma Flow Diagram
Identification

Records identified through Additional records identified

database searching through other sources
(n = 120_ (n = 30 )

Records after duplicates removed

(n = 117)
Screening

Records screened Records excluded

(n = 97) (n = 20)
Eligibility

Full-text articles assessed Full-text articles excluded,

for eligibility (n = 42)
(n = 77)

Studies included in
qualitative synthesis
(n = 35)
Included

Studies included in
quantitative synthesis
(n = 0)

28
Data Extraction and Synthesis
The extraction of authentic and reliable secondary data to address the research
question will be aided by the use of multiple databases including government websites,
company annual reports, ResearchGate journals and Google Scholar. It is important to
highlight here that the systematic review approach will not become a part of this research.
However, to ensure that the answers to the research question are obtained and presented in
this research accurately, it is important to synthesize the qualitative data meaningfully and
critically as well. Data synthesis will not only add value and credibility to the research
findings but will also allow the researcher to express their opinions and findings cohesively.
As mentioned above, the data will primarily be collected from government websites, Google
Scholar, annual reports and ResearchGate journals and will be supported further by obtaining
relevant literature from different libraries also. The impact of CSR activities and practices
undertaken by organizations in the energy sector will be explored comprehensively by the
application of thematic analysis. One of the most prominent advantages of thematic analysis
is the fact that it is equally effective for qualitative, as well as quantitative methods. While it
is a common practice to quantify at least some qualitative data to address research questions,
in the context of this research, the authenticity of the theoretical information used will serve
the purpose of lending credibility to this research.
Ethical Considerations
Despite having no significance in addressing a research question, ethical
considerations still form an important element of the research since it is important for a
researcher to abide by the code of ethics to overcome any ethical dilemmas. For this research,
several ethical considerations were deemed to be important and are listed below:
● Many researchers are often accused of violating trademarks, copyrights and not
abiding by data-protection laws and guidelines. Plagiarism, in this regard, puts a dent
in the credibility of a research. Since ownership credibility is an important ethical
norm that a researcher must take into consideration, it is important to point out
explicitly that all information used in this research is free of any plagiarism and the
information that is subject to copyright is only used after giving due credit to the
concerned individual or group of individuals.
● The case studies used in this research are published by the government in respective
jurisdictions to which the research pertains and other literature, based on which

29
 arguments are formed and conclusions are drawn, is accompanied by due credits and
references.
● A high standard of ethics is maintained, and results are reported with complete
honesty without any manipulation in this research.
● Since the information presented in this research thrives on thematic analysis, this
study focuses on maintaining a constant level of consistency throughout the
interpretation of data and theories presented herein.
● All information and arguments presented in this research are completely objective and
free of bias- especially while reviewing any studies and reports published previously.
● All data and information presented in the research are retrieved from genuine,
authentic incredible sources only.
Research Limitations
● One of the biggest limitations of this research, especially since it is based only on
qualitative methods, is its dependence primarily on data collected and used by
previous researchers. In the absence of primary data, the risk of bias increases.
However, as mentioned above, systems have been put in place to ensure that the
conclusion of this research remains free of any bias.
● While conducting thematic analysis, the risk of error is significantly high which
renders the task of drawing meaningful conclusions a relatively challenging task to
accomplish. However, it is ensured that despite the potential risk of error, all logical
inferences are drawn from the theoretical base developed herein.
● Finally, since this research focuses on examining the impact of CSR practices and
policies on environmental sustainability in the energy sector only, its findings might
present or one-sided, industry-specific opinion. this leaves the scope open for
conducting similar studies in two different industries in the future.
Summary
The research methodology chapter presents a comprehensive overview, review and
detailed listing of tools, techniques, and methods used to address research questions and
determine the manner in which CSR practices and policies adopted by an organization affect
their environmental sustainability. This research is developed on following the interpretivism
paradigm, along with inductive research approach, research design which is descriptive in
nature, employing the qualitative analysis of data that would help in drawing logical
conclusions in the forthcoming chapters.

30
Data Analysis, Findings and Discussion
Introduction
To derive logical and critical conclusions in a portfolio it is essential for the
researcher to present a systematic data findings. The following section of the portfolio
includes the presentation of key findings derived from the sources explored for research
conduction. Additionally, the chapter also includes study results and a discussion based on
the final findings from the research. In the present section of the portfolio secondary data
analysis has been conducted based on the various articles, journals and the findings from the
literature review section. The thematic analysis method is used in the data analysis section to
attain more understanding of the research and concepts associated with the study area. In
order to perform a thematic analysis the themes have been formed on the basis of the articles
used in the literature review section, government report and annual report of Shell PLC for
the last five years. The core findings from these secondary sources will add to the study
results and will also assist in identifying the role of CSR in formulating sustainability
strategies in the energy sector of the UK. The concepts communicated in the secondary
sources will be identified and analysed in the thematic analysis process. In addition to this,
this method has high flexibility in terms of data interpretation and data collection. One of the
shortcomings of using thematic analysis is that it can hamper the validity of the research
because of the subjective or biased interpretation of the data.
Qualitative Analysis
The main aim of this study is to determine the role and impact of CSR on the
sustainability measures taken by energy sector firms in the UK. The qualitive analysis is
based on secondary research in which various literature sources are collected and reviewed to
collected useful information and analysis. The government report and annual reports chosen
for the data analysis as it provides a detailed insight into the UK energy sector as well as it is
an authentic source of academic literature that will significantly add to the findings of the
study.
Thematic Analysis and Findings
Theme 1: Classification of the key drivers of the CSR
This theme discusses the multidimensional concept of CSR in the current business
landscape. As reflected in the study given by Lu et al. (2019), CSR can be articulated as the
core pillar for attaining the aim of sustainable energy development. In addition, to this, it has
been identified in the article that the three key factors of sustainable energy are energy equity,
energy security and energy environmental sustainability(Ordóñez-Castaño et al., 2021). The
31
author also elaborates on the idea of CSR by articulating that CSR helps energy sector firms
in identifying the accountability towards the environmental record. CSR as a notion includes
an extended model based on the ideas of corporate governance that can assist the business
firms in managing their duties and financial aspects of the business(Swaim et al., 2014).
Theme 2: Analysing the role played by CSR in the environmental sustainability for UK
energy sector
As per the findings of the UK Government report and company’s annual reports, the
three key factors of the UK energy market are electricity generation, selling emerging to the
target customer range and transporting energy (JKX Oil & Gas plc, 2021; GOV.UK., 2021).
In the convectional times, most of the energy in the UK energy sector was produced from the
brown energy resources or non-renewable sources such as burning o the fossil fuels like gas
or coal. On the other hand, in the current times, the business firms have changed their
strategy and are now more focused on generating energy from green sources or renewable
sources (Sse Annual Report, 2021). In context to the transportation of energy, the report
states that UK firms manage supply and demand through a national distribution network. This
report presented by the government presents a detailed overview of the energy sector as a
whole and provides data for evaluating its impact. The report also explains the contribution of
the energy sector to the economic development of the UK that acts as one of the prime
reasons government pays a significant amount of attention and investment to this specific
sector(Sekerka and Stimel, 2012). The study present a critical view on the legislation and
government policies designed by the government that need to incorporate in the CSR
strategies of the energy firm to sustain in the market as an ethically responsible business
(GOV.UK., 2021). The study identified the core drivers that act as the key players that
influence the actions to relate to environmental sustainability. In addition to this, the focus of
the article is to determine the relationship between sustainability and CSR. The core focus of
the article is the energy sector as it has environmental, social, and economic impacts. The
article also sheds light on the notion of socially responsible businesses achieving their
predefined economic goals. Furthermore, the article also identified various problems faced by
energy sector firms while implementing CSR strategies to attain environmental sustainability.
One of the key challenges is corruption as it creases a plethora of issues for sustainable
energy development (Kim, 2017). The study explores key areas of CSR policies that help
energy sector companies in devising mitigation measures for controlling the environmental
impact of business operations. The study also emphasizes the fact that government legislation

32
and authority play a vital role in ensuring the sustainability of the environment in the energy
sector by creating efficient corruption mitigation norms (Mac Cormac and Haney, 2012).

Theme 3: Evaluation of the key issues faced by energy sector firms regarding
implementation of advanced CSR strategies
This particular theme lays focus on investigating the reason responsible for the slow
progression of CSR strategies developed by energy sector firms towards environmental
sustainability. One of the key issues related to environmental sustainability in the energy
sector is that corruption that creates a hike in the tariff of the energy and affects the business
for the industry (Helfaya and Whittington, 2019). Another pressing issue that has been
identified from the data findings is that energy sector firms in some circumstances must face
moral allegations from citizens regarding environmental violations because of unavoidable
business operations or accidents (Lu et al., 2019). In the current business era, many
organisations are taking advantage of customer perception and attraction towards green firms
(Sse Annual Report, 2021). Generating fake certifications, unlawful energy production and
illegal activities regarding transportation are some examples in a similar context. Some of the
regulations are a result of political agendas hence it can be a challenge for the energy firms
functioning in the energy sector. In addition to this, it can also regulate the amount of profit
generated by the firm by controlling its major business operations (Centobelli et al., 2020).
Another pressing issue that the government can impose on the energy sector is the
unpredictable investments in specific firms and understanding of policy development.
Additionally, the energy production from both government and private firms has
significantly increased that can create the problem of oversupply in the UK in the upcoming
times. In order to avoid this, the government should regulate strict CSR norms and
regulations(Mac Cormac and Haney, 2012; Group.goodenergy, 2021).
Theme 4: Analysis of the efforts made by UK energy sectors firms in maintaining
environmental sustainability

The themes include analysis of the annual report of Shell PLC for the last five years
that will help identify the key effort made by business organizations to comply with the
norms of environmental sustainability.

33
 It can be seen in the annual report of Shell Plc that the company involves
environmental sustainability as a core part of its CSR strategies and business operations. The
company approach formed by the business to comply with environmental norms and
regulations is based on the external guidelines and standards given by International Finance
Corporation and the World Bank. The major operations covered in the mitigation measures of
the company include management of greenhouse gas (GHG) emission, effective usage of
energy, less gas flaring during oil production, prevention of leaks and spills of hazardous
materials, conserving biodiversity and less use of freshwater. The figure below demonstrates
the declining rate of greenhouse emissions of Shell PLC that demonstrates that the company
is functioning following the regulations of the industry standards, stakeholder expectations
and the UK regulations (Shell PLC- Annual Report, 2016).

Figure: Greenhouse Gas Emissions (2015-2016)

Source: (Shell PLC- Annual Report, 2016)

Figure:
Greenhouse Gas Emissions (2016-2017)
Source: (Shell PLC- Annual Report, 2017)

34
 Figure: Greenhouse Gas Emissions (2017-2018)
Source: (Shell PLC- Annual Report, 2018)

Figure: Greenhouse Gas Emissions (2019- 2020 )

Source: (Shell PLC- Annual Report, 2020)
In 2016, the company started working as per the framework given in the Paris
Agreement to change its approach towards the global climate. Shell Plc also identified that if
the government aims to reduce global temperatures by managing GHG emissions, it will
directly impact the project cost and increase investments. In addition to this, the company
also stated that the increased project cause will add to the product cause, which will impact
the consumer perception towards the business. To manage this issue, the company employed
the approach of project screening value (PSV) that helps the business maintain a uniform
method to test resilience in future scenarios. In context to the production of the Biofuels, the
company was involved with Raízen in a joint venture to produce ethanol Raízen from sugar
cane. In 2016, the company decided to work in a joint venture with Raízen as the Brazilian
sugar cane-ethanol emits 70% less carbon-di-oxide than gasoline (Shell PLC- Annual Report,
2016). This venture allowed the company to take innovative steps to minimize the impact on
the environment and improve the brand image. It can be seen the results given by the
company regarding sustainability that the business focuses on including long-established
clauses in supply contrasts to prevent biofuel sourcing from suppliers that might affect the
human rights norms or biodiversity standards. The company is also developing oil sands that
are mineable in Canada to promote tailing management.

35
 Figure: Risk management approach of Shell Plc for environmental sustainability
Source: (Shell PLC- Annual Report, 2016)

It can be seen in the data presented in the annual report of the company that the
business is making conscious and significant efforts for issues like Hydraulic fracturing,
human rights, security of social stability, environmental cost and seismicity that remain
unseen in the operations of various energy sector firms of the UK (Shell PLC- Annual
Report, 2017). In addition to this, the business also invested in managing the oil spills in the
Niger Delta region as in the year 2017, more than 90% of the oil spill at the Shell Petroleum
Development Company of Nigeria Limited (SPDC) were a result of third party illegal
activities (Shell PLC- Annual Report, 2017). On the other hand, in 2018, the operational
spills decreased to 94 kilograms which were 104 in 2017.
It can be noticed in the CSR efforts mentioned in the annual report of the Shell PLC
that the company has been making efforts since 2015 to reduce the number of chemical
additivities in operations. In addition to this, the company has deduced stringent products
with the main of handling hydraulic-fracturing chemicals while producing energy (Shell
PLC- Annual Report, 2018). The company is continuously contributing to improving the
energy-efficient, especially at refineries, chemical plants and oil and gas production plants.
The company has designed GHG and energy management programs, GHG metrics for
employees, and a system to monitor real-time data regarding GHG emissions. The New
Energies business operations of the company are focused on exploring the new opportunities
prevailing in the energy transition. The company decided in 2018 to invest $1-2 billion per
year till 2020 to develop advanced fuels, transport fuels, new power sources for battery
electric vehicles, power generation from low carbon sources and natural gases (Shell PLC-
Annual Report, 2018). It can be seen in the 2020 Annual report of the company that the
business achieved its predefined goals and objectives by developing new fuels, including an

36
exclusive range of low-carbon technologies. One such product was creating green hydrogen
as a low carbon fuel for transportation purposes, aviation, shipping fuels, aviation and
feedstock used for liquid crackers (Shell PLC- Annual Report, 2020).
The main focus of the company investment in the year 2019 was the development of
nature-based solutions that can add to the society and customer demands of low carbon
products and services. In the year 2019 company focused on increasing investment regarding
renewable power. One such strategy was to acquire ERM Power of Australia to expand the
reach of the business regarding renewable power retailing (Shell PLC- Annual Report, 20
19).
In the past few years, it is evident that Shell PLC has extended its activities
extensively to embed environmental sustainability into its strategy to such an extent that it
has become a core objective for its operational and planning activities. As a part of its
sustainable development initiatives, Shell PLC has been a member of multiple environmental
councils, including the World Business Council for Sustainable Development and has started
reporting annually on their sustainability initiatives per the guideline developed by IPIECA.
Furthermore, in January 2021, the company adopted and implemented successfully the
Stakeholder Capitalism Metrics- a set of social and environmental governance metrics
proposed by the World Economic Forum. Next, in February 2021, the management also
updated the company-wide business strategy to incorporate the steps to provide cleaner
energy solutions. This initiative included generating value for shareholders via dynamic and
disciplined capital allocation while working with their customers across multiple sectors to
accelerate the transition to net-zero emissions (Shell PLC Annual Report, 2020).

Theme 5: Significance of CSR measures for ensuring environmental sustainability in the

Energy sector taken
This particular theme will shed some light on the assessment of the significance of the
mitigation measures taken by energy sector firms as CSR strategies to ensure environmental
sustainability.
It has been identified from the analysis that environmental sustainability has the
capability of dominating both economic and social aspects for a business functioning in the
energy sector (Kassinis et al., 2016). The core reason behind this phenomenon is the
involvement of business operations with natural resources and other environmental factors. It
is essential for the firm to take environmental sustainability as their duty and ensure a
responsible interaction with the factors related to environmental sustainability. This allows
37
the business to reduce the negative impact of business activities on the environment as well it
ensures customer attraction. The common aim of all the energy firms functioning in the
energy sector of the UK is to ensure clean energy (Edfenergy, 2021). In order to do so, the
firms are investing in innovative and technologically advanced methods to attain a modern,
affordable, sustainable and reliable form of energy for all. The energy sector is also focusing
on combating climate change and its adverse impact on the environment (Lu et al., 2019).
CSR helps the firm in designing scale and affordable solutions that can provide
expected results. One of the significant issues in using CSR strategies is cost management as
renewable energy sources require high investments (Scottishpower, 2021). It can be noticed
in the data presented by the Scottish Power in the annual report that the company takes
sustainability as an ethical consideration and ensures transparency in business operations. In
addition to this, it can be stated that the company has deduced a code of ethics as a guide to
ensure responsible behaviour and ethical decision making (Iberdrola, 2021). On the other
hand, companies like Good energy functioning as the competitor for firms like Scottish
Power are making massive and substantial efforts at managing the climate crisis since the
year 1999. The company is currently functioning at 100% renewable electricity with the
contribution from a community with 1900, independent generators.
Efforts made by green organisations like Shell Plc showcase that in the modern
business world businesses are using CSR and environmental sustainability as a core part of
their business model. The organisations working in the UK energy sector are ensuring that
their team of clean energy specialists deliver expected results and performance (Shell PLC-
Annual Report, 2018).
Additionally, the energy production from both government and private firms has
significantly increased that can create the problem of oversupply in the UK in the upcoming
times. In order to avoid this, the government should regulate strict CSR norms and
regulations (Mac Cormac and Haney, 2012; Shell PLC- Annual Report, 2020). However, the
issues lie in the installation cost as renewable sources like wind, solar are cheap to operate.
Another issue is transmission infrastructure that is a must while leveraging renewable sources
(Zeisel, 2020). Lastly, it can be seen in the government report that in the last few decades
many new firms have entered the energy sector market (GOV.UK, 2021).

38
 References
Alvesson, M. and Sköldberg Kaj (2009) Reflexive methodology : new vistas for qualitative
research. 2nd edn. Los Angeles: SAGE.
Bryman, A. (2015) Research methodology : business and management contexts. Fifth edn.
Cape Town: Oxford University Press.
Dane, F. C. (2018) Evaluating research : methodology for people who need to read research.
Second edn. Thousand Oaks, California: SAGE Publications.
Denzin, N. K. and Lincoln, Y. S. (eds) (2018) The sage handbook of qualitative research.
Fifth edn. Thousand Oaks, California: SAGE.
Flick, U. (2020) Introducing research methodology : thinking your way through your research
project. Third edn. London: SAGE.
Gupta, D. (2013) Research methodology. New Delhi, India: PHI Learning Pvt.
Hesse-Biber, S. N. (ed.) (2012) Handbook of feminist research : theory and praxis. Second
edn. Thousand Oaks, California: SAGE.
Iberdrola.com. 2021. [online] Available at:
<https://www.iberdrola.com/wcorp/gc/prod/en_US/corporativos/docs/code_of_ethics.pdf>
[Accessed 4 December 2021].
Kuada, J. (2012) Research methodology : a project guide for university students. 1st edn.
Frederiksberg C Denmark: Samfundslitteratur.
Kumar, C. R. (2012) Research methodology. New Delhi: APH Publishing Corporation.
Lu, J., Ren, L., Qiao, J., Yao, S., Strielkowski, W. and Streimikis, J. (2019). Corporate social
responsibility and corruption: Implications for the sustainable energy sector. Sustainability,
11(15), p.4128.
Mackey, A. and Gass, S. M. (2021) Second language research : methodology and design.
Third edn. New York: Routledge.
Moustakas, C. E. (2020) Heuristic research : design, methodology, and applications.
Newbury Park: Sage Publications, The International Professional.
Shell PLC- Annual Report. 2016. Annual reports download centre & archive. [online]
Available at: <https://reports.shell.com/annual-
report/2016/servicepages/downloads/files/entire_shell_ar16.pdf> [Accessed 6 December
2021].
Shell PLC- Annual Report. 2017. Annual reports download centre & archive. [online]
Available at: <https://www.shell.com/about-us/annual-publications/annual-reports-download-
centre.html> [Accessed 6 December 2021].
39
Shell PLC- Annual Report. 2018. Annual reports download centre & archive. [online]
Available at: <https://www.shell.com/about-us/annual-publications/annual-reports-download-
centre.html> [Accessed 6 December 2021].
Shell PLC- Annual Report. 2019. Disclaimer - Shell Annual Report 2019. [online] Available
at: <https://reports.shell.com/annual-report/2019/servicepages/disclaimer.php> [Accessed 6
December 2021].
Shell PLC- Annual Report. 2020. Disclaimer - Shell Annual Report 220. [online] Available
at: <https://reports.shell.com/annual-report/2020/servicepages/downloads/files/shell-annual-
report-2020.pdf> [Accessed 6 December 2021].
Stovold, E., Beecher, D., Foxlee, R. and Noel-Storr, A. (2014) Study flow diagrams in
Cochrane systematic review updates: an adapted PRISMA flow diagram. Systematic reviews,
3(1), pp.1-5.

40