TITLE:
Net-Zero or Net-Illusion? Corporate Climate Disclosures and the Political Economy of Greenwashing
AUTHORS:
Fredrick Asare-Appiah, Cornelius Adorm-Takyi, Emmanuel Asamoah Boye, Michaella Selasi Genego
KEYWORDS:
Net-Zero Reporting, Corporate Greenwashing, Climate Disclosures, Critical Accounting, Sustainability Reporting, Ecological Accountability
JOURNAL NAME:
Open Journal of Accounting,
Vol.15 No.4,
October
13,
2026
ABSTRACT: This theory-led conceptual review critically examines whether corporate net-zero reporting strengthens substantive climate accountability or enables sophisticated greenwashing within contemporary market-based climate governance. Drawing on critical accounting, legitimacy, stakeholder, political economy and impression-management perspectives, the paper synthesizes literature on Scope 1 - 3 emissions, carbon offsets and credits, ESG ratings, sustainability assurance, and leading disclosure architectures including TCFD, ISSB, GRI and CDP. The synthesis distinguishes substantively oriented commitments—characterized by credible interim targets, material Scope 3 coverage, priority to absolute emissions reductions, limited reliance on offsets, and meaningful external verification—from predominantly symbolic commitments built around distant aspirations, selective metrics and weak accountability. The reviewed literature suggests that voluntary and investor-oriented disclosure systems can improve climate visibility while also creating discretion that supports legitimacy management and selective representation of environmental performance. Emerging mandatory disclosure, anti-greenwashing and assurance reforms may reduce these weaknesses, but their accountability potential depends on reporting boundaries, enforcement and whose materiality concerns are recognized. The paper argues that meaningful ecological accountability requires reporting systems that prioritize verifiable real-economy emissions reductions, transparent treatment of residual emissions and offsets, broader stakeholder accountability, and enforceable governance mechanisms.