This study aims to examine the effect of institutional mechanisms on the greenwashing practices of leading companies in the energy sector.
Drawing on the institutional theory, the authors examine the roles of normative, coercive and mimetic isomorphism, operationalized through cultural individualism, regulatory quality and adherence to the United Nations Global Compact. A mixed-method approach was applied, combining generalized least squares, logistic regression and necessary condition analysis, using a data set of 436 energy companies across 50 countries from 2019 to 2023.
The results reveal that normative pressures, reflected in individualistic cultures, act as a deterrent to greenwashing. However, regulatory quality (coercive isomorphism) does not appear to curb such practices. Paradoxically, firms affiliated with the UN Global Compact show a greater propensity for greenwashing, suggesting that mimetic isomorphism may, under certain conditions, facilitate symbolic environmental disclosures.
These findings contribute novel insights into the institutional drivers of greenwashing in the energy sector and highlight the need for more context-specific policy and governance strategies to ensure authentic sustainability commitments.
