Accounting and accountability for and by the fossil fuel industry in a carbon-constrained world

This paper examines critical accounting and accountability challenges associated with the fossil fuel industry, with particular attention to the sector’s persistent avoidance of responsibility for its contribution to anthropogenic climate change. Using content analysis of investigative journalism, the study explores the environmental, economic and social dimensions of industry practices during the period surrounding the COP27 negotiations in Egypt in 2022. Three interrelated themes are identified: taxation and subsidies, carbon accounting and trading, and disinformation strategies, including greenwashing and sportswashing. Together, these themes illuminate systemic tensions within contemporary climate policy and regulatory frameworks. The analysis indicates that the fossil fuel industry continues to invest heavily in resisting decarbonisation while simultaneously seeking to legitimise or obscure contested activities. These dynamics are frequently reinforced by governments and institutional actors with vested interests in fossil fuel extraction, production and export. The paper argues that incremental improvements in corporate reporting are insufficient to address these structural issues. Instead, it highlights the need for reforms to accounting and accountability regimes supported by coordinated international action. It concludes by calling for stronger collaboration among civil society, regulators and governments to redirect financial gains associated with fossil fuel activities and tax practices towards equitable decarbonisation pathways.