Total Environmental Risk of Oil and Gas Companies Based on Corporate Non-financial Reporting Data

Although ensuring the economic security is a research object in many scientific works, the assessment of different risks on the companies’ economic security continues to be relevant. It’s worth noting the increasing role of different environmental factors especially for oil and gas companies determined by the industry specifics. So, the research is aimed at developing quantitative environmental risk methodology based on corporate integrated reporting data of economic entities. The study contains a comprehensive assessment system of environmental risks of the economic security, determined by oil and gas industry specifics. Environmental risks are proposed to be assessed in three key directions: eco-management, the influence on environment and ecosystems, and the quality of information disclosed in corporate statements. Based on the developed indicators, the authors assessed the total environmental risk of the largest oil and gas companies. The results of the study show that the non-financial reporting data of the analyzed companies is quite informative from the point of view of environmental policy results. However, the assessment of some indicators isn’t possible because there is a lack of relevant reporting data. A high influence of environmental factors on the companies’ financial efficiency has been established through the correlation and regression analysis. The index of the companies’ financial efficiency in the study is P/E ratio.