The Role of Environmental Accounting in Mitigating Environmental Pollution Risk and its Disclosure

Abstract

This research explores the critical role of environmental accounting in mitigating environmental pollution risks and improving disclosure practices. Environmental pollution has become a significant global concern, amplified by industrial activities and mismanagement of natural resources. As stakeholders increasingly demand corporate responsibility, environmental accounting has emerged as a pivotal tool for organizations to quantify their environmental impacts, integrate eco-ethics into their financial systems, and enhance transparency in environmental risk disclosures. This study examines how environmental accounting frameworks can aid in reducing corporate pollution by identifying the cost of pollution-related activities and aligning them with financial decision-making processes. Additionally, the research investigates the regulatory frameworks that promote environmental transparency and the challenges that companies face in implementing these practices. Case studies on corporate environmental accounting demonstrate both the potential and limitations of current practices. The research concludes with recommendations on the strategic integration of environmental accounting to foster sustainability and risk mitigation. These findings underscore the importance of consistent environmental disclosure in enhancing corporate accountability and in reducing environmental risks.