This study aims to analyze the determinants of circular economy (CE) initiatives based on the performance related to the sustainable development goals (SDGs) of firms operating in the Oil and Gas (O&G) sector. In detail, adopting a stakeholder–agency theory lens, this study explores the relationship between corporate governance and CE performance measured through SDGs. Specifically, the research aims to highlight how corporate governance attributes could affect firms’ ability to implement CE practices and – in turn – reach a higher SDG performance.
A global sample of firms operating in the O&G sector has been selected from the Thomson Reuters Refinitiv Eikon database. To test the research hypotheses, an SDG-based CE performance index has been developed. Subsequently, an ordinary least squares (OLS) regression model is carried out to explore the impact of the following variables on the CE performance index: board size, board gender diversity, board independence and corporate social responsibility (CSR) committee.
The results highlight that the board size and the presence of a CSR committee positively influenced SDG-based CE performance. However, board gender diversity does not have a significant impact on CE performance in relation to the SDGs, whereas board independence appears to exert a negative effect.
To the best of the authors’ knowledge, this study represents the first research that systematically addresses CE performance based on SDGs in the O&G industry, providing implications for the sector from both theoretical and managerial points of view.
