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Impact of Regulatory Influence on Kingdom of Saudi Arabia | Project

   

Added on  2020-02-03

9 Pages1542 Words67 Views
IMPACT OFREGULATORYREQUIREMENTSONSUSTAINABILITYINITIATIVES1

IMPACT OF REGULATORY INFLUENCE ON SUSTAINABILITYINITIATIVES Looking at the present globalized market, cross currency transactions are increasing atvery faster rate. It lead to increase complexity and uncertainties in the market environment hence,market becomes tougher day by day. Therefore, it becomes essential for all the enterprises to takesustainability initiatives to ensure long-run survival. All the organization follow legislations andregulations to operate in the market. Present project will focuses on assessing the impact ofregulatory influence on sustainability initiatives in the Kingdom of Saudi Arabia. This initiativesin terms of social, economic, environmental and others helps to accept global challenges andtransform it into build strategic and competitive abilities to assure sustainable business. Saudi Arabia is one of the largest country of oil and energy production in which widerange of companies are engaging in oil extraction and energy distribution. Countries such asRussia, Iran and Qatar are some of the largest greater petroleum liquids available which it exportit to the other countries and generate larger revenues. Saudi Aramco is a national petroleum andnatural gas company who was established in Dhahran. It operates in oil and gas industry andfounded in the year 1933. It is a leading producer of petroleum products who provides petroleum,natural gas and petrochemical products at global level (Corcoran and Wals, 2004). It is the stateowned enterprises and the largest company in terms of resource reserve and production ofhydrocarbons. Saudi Aramco takes different steps so as to ensure environmental protection towardssociety. Company decides to create a sustainable energy mix by using a combination of both thesolar and nuclear power. It aims at encouraging the participation of private capitalists or investorsin the oil and gas industry. Empty stretches of deserts helped to host solar arrays by the use ofclear sand in manufacture of silicon photovoltaic cells (Corcoran and Wals, 2004). It providebenefits to Aramco about 3000 sunshine hours each year. Company is extensively developed solarenergy production which costs will be $0.10 per KWH. But still, it is comparatively very cheaperthan diesel-fired energy generation. It plans to generate solar energy and meet high electricitydemand over global market. In the Aramco, trash, scrap, garbage, laboratory wastage, oily liquids, oily sludge andasbestos and radioactive wastes, discarded equipment and radioactive waste are some of thefactors which results in environmental pollution (Zilahy and Huisingh, 2009). Its EnvironmentalProtection Department (EPD) is created in such a way so that environment pollution can becontrolled. 2

In this, Engineering department are responsible to land and groundwater protection unit,air quality and management of dirty water and marine protection. While, under the regulatoryrequirements, the environmental compliance division is responsible to compliance withlegislatory provisions such as radiation protection (Giovannucci and et.al., 2008). This departmentprovide training to the personnel, bring environmental awareness and monitor and evaluateAramco's performance on the basis of 21 indicators.The department is consistently following the rules and complying with regulatorystandards of the KSA. Environmental performance assessment (EPA), Air quality monitoring andmeterology network (AMMNET), Hazardous material communication (HAZCOM), Occupationalhealth hazard assessment (OHHA) and Comprehensive environmental health assessment (CEHA)are some of the basis to measure company's actual performance to fulfil their environmentalresponsibilities towards society (Green Machine: Saudi Aramco, 2012). The department is highly3Illustration 1: Environmental protection departments(Source: Hejari, 2010)

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