The role of (multi)national oil and gas companies in leaving fossil fuels underground A systematic literature review

(Multi)national oil and gas (O&G) companies need to drastically change their business activities to reduce their greenhouse gas (GHG) emissions in the context of the current climate crisis. However, despite their sustainability claims, in practice O&G majors maintain the status quo. The literature scarcely covers corporate strategies by O&G companies in reaction to climate change and the need to leave fossil fuels underground (LFFU). Hence, we address the question: What does the literature say about the transition strategies of (multi)national O&G companies in the context of the current climate crisis and the need to phase out fossil fuels? Based on a systematic literature review of peer reviewed papers (80), book chapters (5) and selected relevant grey literature (22), we see the following trends. Multinational O&G companies are discussed as: (1) diversifying their business activities, (2) managing their reputation by shaping the public discourse, and (3) lobbying. The scholarship presents exogenous and endogenous drivers and barriers influencing company decisions to act or resist change. Endogenous factors can be clustered under corporate governance and shareholders. Exogenous factors include (1) policy; (2) law; (3) competition; and (4) activism whereas policymaking and law are identified to be potentially most influential. The scholarship reveals that the barriers are more powerful than the drivers resulting in O&G companies not keeping up with their transition claims leading to greenwashing. Weak climate policies and law are unable to adequately affect their strategies which may result from the strong interdependencies between many governments and O&G companies.