A Review on Green Accounting Practices and Sustainable Financial Performance

Abstract

Sustainability is a broad concept that refers to the ability to meet the needs of the present without compromising the ability of future generations to meet their own needs. It comprises three dimensions: environmental, social, and economic sustainability. Sustainable development and practices take into account these dimensions with the goal of creating a better and more equitable world for present and future generations. The ability of a corporation to create long-term financial success while also taking into account and addressing ESG factors is referred to as sustainable financial performance. In this context, green accounting plays a major role. This study aims to provide an understanding of the importance of sustainability in business, green accounting, and the relationship between sustainability and financial performance. Some studies reveal that the relationship between sustainability practices and financial performance is confusing or contradictory, showing positive and occasionally negative outcomes. Even though in some cases it shows a negative relationship, every organisation must adopt sustainable practices, because, it helps the organizations gain a competitive advantage in the marketplace, attract a broader customer base, and adapt more readily to changing market dynamics. Sustainability is positioned as not merely a choice but a requirement for a better, more equitable future, and businesses are encouraged to navigate this intersection for the benefit of both society and the environment