Factors affecting environmental sustainability of the downstream oil industry in Western Cape, South Africa

Abstract

The oil industry has been a major contributor to economic development in many countries; providing jobs, revenue, infrastructure and businesses to third parties. However, this development has also come with adversity on the physical environment. The oil industry accounts for the highest Green House Gas (GHG) emissions in the world, making it the number one polluter. In addition, South Africa has been regarded as the biggest polluter in Africa, with fossil-based fuel cited as the major cause of environmental degradation. South Africa’s physical environment is also cited as having degraded more than most countries in Africa. This proposition requires players in the oil industry to urgently address this situation. As the future of economic development is likely to be spearheaded by the oil industry, concerns have been raised at the slow rate of addressing oil companies’ operations which causes the environment to be less sustainable. This study uses a qualitative content analysis to explore the oil companies’ actions towards addressing environmental adversity caused by their unsustainable operations. In order to be environmental sustainable, oil companies must; incorporate environmental sustainability into missions and visions, financial investment into sustainable initiatives, involve top management in environmental programs, engage stakeholder, comply and align organisational processes and operations with environmental legislations and introducing renewable energy.