Energy transition: Assessing oil companies' compliance with their disclosed environmental strategic positioning

Abstract Based on the greenwashing approach in line with legitimacy theory, we examine first whether the strategic positioning of key oil companies is addressed by their disclosed commitments in their corporate reports and, second, whether the disclosures made by oil companies in relation to energy transition reflect their behavior. We use an ordinal logistic regression model in a sample of 38 oil companies, our findings suggest that the lower the investment in oil and gas exploration and production, and the smaller the variation in the volume of hydrocarbon reserves, the more likely a company narrates a strong commitment to the energy transition. Also, we consider that investments in fossil fuels need to be reduced significantly to accelerate the transition to cleaner and sustainable energy sources, and it is vital to observe the alignment of disclosed commitments by companies to the transition and their behavior, avoiding the accusation of greenwashing practices.