SMART-analysis of the objectives of Russian oil and gas companies on reducing greenhouse gas emissions

Due to the aggravation of the climate agenda, energy and industry all over the world are facing the unprecedented challenges caused by the necessity to reduce greenhouse gas emissions. Industrial companies are intensifying the trends and plans of low carbon development, take actions on reducing greenhouse gases emissions as it is the most important component of the general business climate responsibility. This, in its turn, requires adaptation of the approaches at the level of strategic management including goal setting. The study is devoted to development of a scientific and methodological approach to the reduction of greenhouse gas emissions (climate objectives of oil and gas companies) within the system of strategic management of decarbonization activities. As a result of the study, the authors suggest a scientific and methodological approach to adaptation of the SMART-method to analyzing climate objectives which includes updated parameters of the SMART criteria, the method of conducting SMART-analysis and scientific and methodological tools of quantitative evaluation of achievability of the goals set by oil and gas companies on the basis of calculation of the basic, actual, target and plan levels of climate indicators. The proposed approach has been tested on the example of the goals on reducing greenhouse gas emissions declared by the largest oil and gas companies of Russia. The information and analytical base of the study includes the reports on sustainable development of Russian oil and gas companies. The authors reveal the typology of goal setting and suggest recommendations on how to improve the process within the system of strategic management of decarbonization activities at the company level. It has been discovered that nine out of fifteen climate objectives of Russian oil and gas companies completely comply with the SMART criteria. Also, one third of the goals is actually achieved which indicates that the companies are focused on realistic goal setting and permanent improvement of the internal processes in the area.