Evaluating the sustainability reporting of oil and gas companies in post-conflict regions: the case of Kurdistan

Purpose This study evaluates the sustainability reporting of oil and gas companies in discharging accountability to powerless stakeholders in the Kurdistan Region of Iraq (KRI), a post-conflict region in the Middle East and North Africa (MENA). Design/methodology/approach The study draws on stakeholder theory and adopts an interpretivist approach. Data comprise 21 semi-structured interviews with citizens, tribal leaders, Mukhtars, and local workers, alongside seven sustainability reports, published in 2023, by foreign oil companies operating in the KRI. The interview data are thematically analysed, while reports are assessed using a disclosure quality index and word count. Findings Post-2007 oil-led economic reforms were intended to bring prosperity to a post-conflict region but have instead resulted in social, economic, and environmental costs. Weak institutional oversight allows local and foreign oil companies (LOCs and FOCs, respectively) to prioritise economic interests over the sustainability concerns of powerless stakeholders. LOCs fail to engage in sustainability reporting, while FOCs conduct minimal, if any, local stakeholder engagement; their reports lack relevance to KRI-specific issues, highlighting an accountability gap and growing frustration among local stakeholders. Practical implications Policymakers and regulators should mandate sustainability reporting that ensures alignment with high-quality international standards and better reflects local sustainability needs. Standard-setters, such as the GRI and the ISSB, should consider issuing guidelines to ensure that sustainability reports address local stakeholder concerns. Practitioners, including sustainability report preparers and assurance professionals, should ensure that the voices and concerns of powerless stakeholders are reflected in sustainability disclosures. Originality/value This research extends previous studies by examining sustainability reporting in a post-conflict region, MENA, which has been less documented in the literature.