Assessment of ESG Efficiency of Oil and Gas Sector in Kazakhstan
https://doi.org/10.47703/ejebs.v69i1.455
Abstract
The oil and gas industry plays a key role in the global and national economy, necessitating the need to develop sustainable development strategies to ensure long-term growth and resource security. The purpose of the study is to provide a comprehensive analysis of the ESG (environmental, social, and governance) efficiency of oil and gas companies in Kazakhstan based on the developed methodological approaches. The research employs a combined approach integrating quantitative and qualitative methods. Quantitative analysis includes statistical methods, econometric modeling, and index assessment, while qualitative evaluation is based on expert reviews, best practice analysis, and corporate reports. Correlation and cluster analyses are used to examine ESG performance and classify companies into different sustainability categories. The study is based on data from the RAEX analytical agency and the Bureau of National Statistics, covering the period from 2013 to 2023. The findings reveal significant disparities in ESG efficiency among Kazakhstan’s oil and gas enterprises. While leading companies demonstrate strengths in environmental sustainability (E-Rank = 6), they require improvements in social responsibility (S-Rank = 18) and governance (G-Rank=7). Correlation analysis indicates a strong relationship between industry wages and pollution levels, highlighting potential economic-environmental trade-offs. Achieving sustainable growth in Kazakhstan’s oil and gas sector requires technological modernization, and enhanced collaboration between regulatory bodies and private enterprises. Future research should explore the long-term financial and operational impacts of ESG policies on industry competitiveness.
Keywords
Economy,
Economic Stability,
Sustainable Development,
Corporate Governance,
Oil Production,
Resource Management,
Strategic Development,
Kazakhstan
Supporting agencies: This research has been funded by the Science Committee MSHE RK (grant “Strategy of structural and technological modernization of the basic sectors of the economy of the Republic of Kazakhstan based on ESG: criteria, mechanisms and forecast scenarios” BR24993089).
About the Authors
Galymzhan Beisembayev
University of International Business named after K. Sagadiyev, Almaty, Kazakhstan.
Kazakhstan
Kazakhstan
PhD candidate, Email: galymzhan.beisembayev@mail.ru
Assel Akhmetkyzy
University of International Business named after K. Sagadiyev, Almaty, Kazakhstan.
Kazakhstan
Kazakhstan
Master of Business, Researcher, Email: assel.akhmetkyzy@gmail.com
References
1. Ahmad, N., Ribarsky, J., & Reinsdorf, M. (2017). Can potential mismeasurement of the digital economy explain the post-crisis slowdown in GDP and productivity growth? OECD Statistics Working Papers, No. 2017/09. A Publishing. https://doi.org/10.1787/a8e751b7-en
2. Akhunov, R. R., Akhunova, L. R., Marichev, S. G., & Nizamutdinov, R. I. (2021). Russian oil and gas regions during the COVID-19 crisis and their digital transformation. R-Economy, 7(3), 179-191. https://doi.org/10.15826/recon.2021.7.3.016
3. Aldowaish, A., Kokuryo, J., Almazyad, O., & Goi, H. C. (2022). Environmental, Social, and Governance Integration into the Business Model: Literature Review and Research Agenda. Sustainability, 14(5), 2959. https://doi.org/10.3390/su14052959
4. Amel-Zadeh, A., & Serafeim, G. (2018). Why and how investors use ESG information: Evidence from a global survey. Financial Analysts Journal, 74(3), 87–103. https://doi.org/10.2469/faj.v74.n3.2
5. Aouadi, A., & Marsat, S. (2018). Do ESG Controversies Matter for Firm Value? Evidence from International Data. Journal of Business Ethics, 151, 1027-1047. https://doi.org/10.1007/S10551-016-3213-8
6. Bereznoi, A. (2021). Global oil & gas corporations in the race for technological superiority. World Economy and International Relations, 65(5), 59-67. https://doi.org/10.20542/0131-2227-2021-65-5-59-67
7. Brantley, S.T., Bissett, S., Young, D.O, Wolner, C.W., & Moore, L.G. (2014). Barrier Island Morphology and Sediment Characteristics Affect the Recovery of Dune Building Grasses following Storm-Induced Overwash, PLOS ONE, 9. http://dx.doi.org/10.1371/journal.pone.0104747
8. Brzeszczyński, J., Ghimire, B., Jamasb, T., & McIntoshd, G. (2019). Socially Responsible Investment and Market Performance: The Case of Energy and Resource Companies. The Energy Journal, 40, 17 - 72. https://doi.org/10.5547/01956574.40.5.jbrz
9. Charfeddine, L., Klein, T., & Walther, T. (2020). Reviewing the oil price–GDP growth relationship: A replication study. Energy Economics, 88, 104786. https://doi.org/10.1016/j.eneco.2020.104786
10. Deng, N. (2013). Study on the management innovation of enterprises in knowledge economy era. Business and Management Research, 2(4), 142-147. https://doi.org/10.5430/bmr.v2n4p142
11. Dowling, N.A., Youssef, G.J., Jackson, A.C., Pennay, D., Francis, K.L., Francis, K.L., Pennay, A., & Lubman, D.I. (2015). National estimates of Australian gambling prevalence: findings from a dual‐frame omnibus survey. Addiction (Abingdon, England), 111, 420 - 435. https://doi.org/10.1111/add.13176
12. Eccles, R. G., Kastrapeli, M. D., & Potter, S. J. (2017). How to integrate ESG into investment decision-making: Results of a global survey of institutional investors. Journal of Applied Corporate Finance, 29(4), 125–133. https://doi.org/10.1111/jacf.12267
13. Egorov, O. I., Amaniyazova, G. D., & Saubetova, B. S. (2018). Oil refining and gas chemistry as priorities of innovative development of economy of oil and gas regions of Kazakhstan. Economy: strategy and practice, 3, 87-98. https://esp.ieconom.kz/jour/article/view/40/0?locale=en_US (In Russ.)
14. Ferrat, Y., Daty, F., & Burlacu, R. (2022). Short- and long-term effects of responsible investment growth on equity returns. Journal of Risk Finance, 23(1), 1-13. https://doi.org/10.1108/JRF-07-2021-0107
15. Fattouh, B., Poudineh, R., & West, R. (2019). The rise of renewables and energy transition: What adaptation strategy exists for oil companies and oil - exporting countries? Energy Transitions, 3, 45–58. https://doi.org/10.1007/s41825-019-00013-x
16. Giese, G., Lee, L.-E., Melas, D., Nagy, Z., & Nishikawa, L. (2019). Performance and risk analysis of index-based ESG portfolios. The Journal of Index Investing, 9(4), 46–57. https://doi.org/10.3905/jii.2019.9.4.046
17. Gurvich, E. (2004). Macroeconomic Role of Russia's Oil and Gas Sector. Voprosy Ekonomiki, 10, 4-31. https://doi.org/10.32609/0042-8736-2004-10-4-31 (In Russ)
18. Hastings, A., & Smith, P. (2020). Achieving net zero emissions requires the knowledge and skills of the oil and gas industry. Frontiers in Climate, 2, 601778. https://doi.org/10.3389/fclim.2020.601778
19. Janicka, M., & Sajnóg, A. (2021). The European Union’s Environmental Policy and Long-Term Investments of Enterprises. European Research Studies Journal, 4, 335-355. https://doi.org/10.35808/ersj/2660
20. Karabalin, U. S., & Tukaev, A. K. (2016). New challenges and perspectives for the global oil market. Neft i gaz, 4(94), 11-21. http://neft-gas.kz/f/no4_neft_i_gaz_no4_2016.pdf (In Russ)
21. Kiseleva, O. N., Kulbyakina, A. V., & Ozerov, N. A. (2020). Innovative development technologies of oil and gas industries. IOP Conference Series: Materials Science and Engineering, 862, 062090. https://doi.org/10.1088/1757-899X/862/6/062090
22. Lanshina, T., Barinova, V., Kondratiev, A., & Romantsov, M. (2020). Sustainable development and digitalization: The unusual COVID-19 crisis requires original solutions. International Organisations Research Journal, 15(4), 91–114. https://doi.org/10.17323/1996-7845-2020-04-05
23. Noll, F., Lüke, W., Wappler, M., & Oles, M. (2018). Industrial companies in innovation ecosystems. 2018 IEEE International Conference on Engineering, Technology and Innovation (ICE/ITMC), 1-5. https://doi.org/10.1109/ice.2018.8436300
24. OECD. (2020) OECD Business and Finance Outlook 2020: Sustainable and Resilient Finance, OECD Publishing, Paris, https://doi.org/10.1787/eb61fd29-en
25. Okeke, I. C., Agu, E. E., Ejike, O. G., Ewim, C. P.-M., & Komolafe, M. O. (2022). Developing a regulatory model for product quality assurance in Nigeria’s local industries. International Journal of Frontline Research in Multidisciplinary Studies, 01(02), 054–069. https://doi.org/10.56355/ijfrms.2022.1.2.0055
26. Pera, J. (2017). An enterprise’s financial stability and its sustainable growth: A risk-based perspective. International Entrepreneurship Review, 3(2), 49-62. https://doi.org/10.15678/PM.2017.0302.04
27. Perepelitsa, D. G., & Zhdanova, O. A. (2017). Peculiarities of investment decision-making in the oil and gas industry aimed to ensure sustainable growth of the Russian economy. International Journal of Energy Economics and Policy, 7(1), 216-223. https://econjournals.com/index.php/ijeep/article/ view/3859
28. Peng, Y., Li, J., & Yi, J. (2019). International oil companies’ low-carbon strategies: Confronting the challenges and opportunities of global energy transition. IOP Conference Series: Earth and Environmental Science, 237(4), 042038. https://doi.org/10.1088/1755-1315/237/4/042038
29. RAEX. (2024). ESG ranking of oil and gas companies. Retrieved October 25, 2024 from https://raex-rr.com/
30. Tleuzhanova, M., & Dildebayeva, Zh. (2024). Role of oil production in the economic development of Kazakhstan. Neft i gaz, 4(142), 102-111. http://neft-gas.kz/f/nig_4_104-113.pdf (in Russ)
Review
For citations:
Beisembayev G., Akhmetkyzy A. Assessment of ESG Efficiency of Oil and Gas Sector in Kazakhstan. Eurasian Journal of Economic and Business Studies. 2025;69(1):18–31. https://doi.org/10.47703/ejebs.v69i1.455
Views:
27
JATS XML
Email this article 