How Does Transformational Leadership Enhance Sustainability Practices in Energy and Industry? The Mediating Influence of Environmental Awareness

This paper explores the multidimensional interdependencies, namely, the links between the transformation of leadership, sustainable practices, and environmental awareness, generally, in the energy and industrial sector of Saudi Arabia. We aim to delineate transformational leadership as a tool that will help promote sustainable practices by mediating environmental awareness. Data was collected through a questionnaire distributed among 384 employees in four prominent Saudi companies: KSA (SAPCO) (SABIC) Company, Saudi Electric Company (SEC), and Petro Rabigh Company. Applying the Structural Equations Evaluation Model (SEM) to the data analysis, the results demonstrated the positive role of transformational leadership in sustainability practices with the role of environmental awareness to act as a mediator. Lastly, those transformational leadership dimensions we mentioned earlier – charismatic leadership, directional motivation, intellectual stimulation and individualized attention – are crucial for successful sustainability projects. The data revealed a need for the enterprise to think about the environment as the core of its values to link these values to the practice of sustainability. This assumes that the enterprise will seek to include sustainability practices in its main strategies.