The role of environmental accounting in promoting sustainability in Libyan oil companies

Abstract

This research aims to examine the role of environmental accounting in enhancing the dimensions of sustainability (environmental, economic, and social) in Libyan oil companies. The research relied on a descriptive and analytical approach, designing a questionnaire directed at a sample of (110) employees in Libyan oil companies. Multiple statistical methods were used, such as descriptive statistics, Pearson's correlation coefficient, and simple linear regression analysis, to verify the relationships between variables.
The results showed that environmental accounting has a strong and statistically significant impact on enhancing the environmental dimension of sustainability by reducing harmful emissions, monitoring the consumption of natural resources, and incorporating environmental costs into financial reports to support environmental decisions. Environmental accounting also appears to contribute moderately to strongly to enhancing the economic dimension by improving efficiency, reducing financial waste, and enhancing confidence among investors and companies. On the social level, the results indicated a significant impact of environmental accounting in enhancing the social responsibility of oil companies and improving their relationship with the local community and stakeholders. The study concludes that environmental accounting is no longer just a traditional tool for measuring environmental costs, but rather a strategic tool that supports the long-term sustainability of Libyan oil companies. It recommends expanding the scope of environmental accounting and developing integrated accounting systems to more accurately measure environmental and social costs and benefits, while enhancing senior management's awareness of the importance of integrating these practices into companies' strategic plans, thus contributing to achieving comprehensive sustainability for this vital sector.