Abstract Background: The oil industry is experiencing tremendous challenges due to the shifts in global markets and decreasing profits from oil. These challenges have steered companies to select more profitable investments and disregarding different matters of sustainability. However, the oil companies aim to be seen as more sustainable, since the demands of the public and governments increased toward sustainability. Thus, improving sustainability capabilities in the oil industry has become more critical than ever. In this study, the triple bottom line framework is used, which covers the social, environmental, and economical dimensions of sustainability. This study focuses on reactive and proactive practices that can overcome the barriers to achieving sustainability. Furthermore, the focus is on the oil industry’s pursuit of sustainability is facilitated by connecting reactive and proactive practices to improve the sustainability capabilities of a company. Purpose: The purpose of this study is first to identify the barriers to achieving sustainability in the oil industry and understand how companies can overcome these barriers by conducting reactive and proactive practices. Furthermore, the purpose is to understand how reactive and proactive practices can improve companies' capabilities for sustainability performance. Method: This study follows the inductive approach, as the aim was to discover new insights and assumptions from the studied phenomenon. Furthermore, the study is conducted as exploratory and qualitative, in order to provide a rich understanding of the barriers of sustainability within the oil industry, and how reactive and proactive practices can facilitate the capabilities for improving sustainability in companies. For the data collection method, semi-structured interviews were conducted with experts working within a single company that operates in the oil industry. The collected empirical data was analyzed with grounded analysis. Conclusion: With the empirical findings and existing literature, the internal and external barriers to achieving sustainability are identified. Furthermore, the connection with identified barriers and reactive and proactive practices is introduced, as well as how the practices facilitate overcoming these barriers. Also, the study connects reactive and proactive practices that improve sustainability capabilities in companies. The study suggests that practitioners focus on developing a solid foundation of reactive practices, on which to build strategies with proactive practices. Primarily the focus on the oil industry should be in the creation of environmental capabilities, as this potential is disregarded with the current set of practices. Improving triple bottom line dimensions is identified as a win-win process, which argues for the potential of improvement in environmental sustainability would assist in matching the economic and social demands of the oil industry.

The Resource Management Act 1991 (RMA) gave councils a mandate and an obligation to promote sustainability. Along with this it also introduced an expectation that the environment will be better managed than previously. Evidence shows that the environment is continuing to be degraded. This is especially evident in the coastal environment where in the early 2000s there has been unprecedented development pressure. The addition of the Local Government Act in 2002 (LGA) has strengthened councils’ sustainability mandate by stipulating a sustainable development approach and supporting processes and principles. Because the RMA and LGA have a similar sustainability directive there has been a push to utilise the compatible strengths that the LGA offers to enhance the outcomes achieved through RMA decisions, therefore, integrating and aligning the LGA and RMA. This research used case studies, including interviews, to examine how councils use their RMA and LGA mandates in coastal development decisions. The research found that currently there is little integration of the LGA’s requirements and sustainability direction in RMA coastal subdivision decisions. The case study analysis showed that using the principles and processes in the LGA and also a council’s policies, strategies, and plans other than RMA documents would provide up to date policy direction and contextual information that would be useful for RMA decisions and could provide a more sustainable outcome if used. The case studies identified a significant number of barriers to achieving sustainability through the RMA, including that much of the policy direction in RMA planning documents is not considered in deliberations. A number of these barriers are also likely to reduce attempts to integrate and align the LGA and RMA, unless they are addressed.

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