The Impact of Environmental Accounting Disclosure on Achieving Sustainable Development: Evidence from the National Oil Corporation (NOC) of Libya

The Impact of Environmental Accounting Disclosure on Achieving Sustainable Development

Abstract

:  This study investigates the impact of environmental accounting disclosure on sustainable development within the National Oil Corporation (NOC) of Libya. It explores how transparency in environmental accounting disclosure influences the environmental, economic, and social dimensions of sustainability. The study employs an empirical approach, utilizing regression analysis to examine the relationship between variables. The study's findings are synthesized with established frameworks such as Legitimacy Theory to provide a holistic understanding of corporate transparency in a sensitive energy sector. The results provide robust evidence that environmental accounting disclosure positively and significantly influences sustainable development, explaining over 50% (R² = 0.507) of its variance. With a high mean score of 4.08 and a strong regression coefficient (B= 0.712), the study confirms that the NOC has successfully transitioned toward a Sustainable development -oriented reporting framework. These findings align with global studies, suggesting that environmental transparency acts as a strategic tool for securing social legitimacy and enhancing economic efficiency. The study recommends the formal establishment of a specialized Environmental Accounting Unit within the NOC and the adoption of Global Reporting Initiative (GRI) standards. It provides policymakers with a roadmap to enhance regulatory frameworks for resource-consuming industries in emerging economies. Originality/Value: This research bridges a critical knowledge gap in the Libyan accounting literature by interlinking environmental disclosure with Sustainable development in the oil industry. It shifts the discourse from mere compliance to a strategic imperative for future viability in a green global economy.