The Role of Environmental Disclosure in Enhancing the Readiness of Libyan Oil Companies for the Transition to Clean Energy

Abstract

This study aimed to examine the role of environmental disclosure in enhancing the readiness of Libyan oil companies for the transition to clean energy through an empirical investigation at Sirte Oil Company. The study adopted a descriptive-analytical approach and employed a structured questionnaire to collect data from the entire study population of 118 financial managers, department heads, accountants, and auditors. Data were analyzed using the Statistical Package for the Social Sciences (SPSS). The findings revealed a high level of environmental disclosure across its various dimensions, as well as a high level of organizational, financial, technical, and human readiness for the transition to clean energy. However, the study also identified several challenges, including the absence of unified environmental disclosure standards, limited regulatory requirements, insufficient financial resources, and the high cost of clean energy technologies. The study concluded that strengthening environmental disclosure practices significantly enhances the institutional readiness of Libyan oil companies to transition toward clean energy and supports sustainable development objectives. Accordingly, it recommends improving environmental disclosure regulations, enhancing the quality of sustainability reporting, increasing investments in low-carbon technologies, and strengthening institutional capacities to accelerate the transition toward sustainable energy systems.