Environmental Accounting Research Articles

The path to scientifically sound biodiversity valuation in the context of the Global Biodiversity Framework

Successful implementation of the Kunming-Montreal Global Biodiversity Framework requires identifying a process for measuring and valuing changes in biodiversity that build on the recognition that economics and valuation must play a key role in “halting and reversing” biodiversity loss. Here, we discuss considerations for a practical path to valuing changes in biodiversity. Framing changes in the value of biodiversity as a summary of changes in certain natural assets enables leveraging existing approaches and international standards associated with environmental-economic accounting. We discuss why an approach that builds from individual species, evolutionary groups, or functional groups into a practical, hierarchical statistical classification system is better than the development of any one biodiversity index. We merge techniques from ecology and other natural sciences, national and environmental-economic accounting, and economics, which are all on the cusp of making measurement of the change in the value of biodiversity possible. The focus should be on scaling and integrating these approaches. The path forward appears to begin with imperfect but useful measures, grounded in robust concepts, while establishing ambition to further scale-up measurements—just like the past evolution of many other official statistical series.

Analysis of the Application of Environmental Accounting in Solid Waste Management in Karawang Health Center

This research aims to determine the application of environmental accounting in waste management activities as well as the stages of accounting treatment of environmental costs by referring to PSAK 2015 No.1 carried out by the Karawang Community Health Center. The method used in this research is descriptive qualitative with a case study approach. The results of the research found that the Karawang Community Health Center had incurred costs related to waste management and had managed its waste well, namely in collaboration with third parties. However, the storage of solid or B3 waste at the Karawang Community Health Center is still not in accordance with applicable standards. And in the accounting treatment stages, the Karawang community health center has not fully carried out these stages because there is no specific presentation of environmental cost reports, therefore the Karawang community health center has not implemented environmental accounting properly. The inhibiting factors in implementing environmental accounting at the Karawang Community Health Center are HR (Human Resources), level of understanding and development.

Innovating for sustainability: the role of environmental management accounting in driving environmental performance

Environmental management accounting (EMA) has emerged as a potentially valuable tool for companies seeking to monitor and manage their ecological impacts. However, the connection between EMA and environmental performance (EP) remains unclear, with prior studies yielding mixed results. Moreover, little is known about the mechanisms through which EMA may influence EP. Therefore, this study seeks to examine the link between EMA and EP, with a particular focus on the mediating influence of green innovation (GI) within the context of SMEs situated in least-developed countries, such as Yemen. To this end, data was gathered from 299 manufacturing SMEs in Yemen and analyzed using PLS-SEM technique via SmartPLS software. The results of the statistical analysis revealed a positive and important effect of EMA on EP. Importantly, GI serves as a partial mediator in the EMA-EP relationship. Therefore, the results of this study add significantly to the current body of literature on sustainability and provide important new perspectives.

Bioaccounting measurement of environmental assets: beyond environmental accounting

PurposeThis paper aims to develop a framework for the bioaccounting measurement of environmental assets based on natural wealth sustainability. Specifically, this paper proposes a theoretical structure for qualitative and quantitative organization-level assessments of the existence and circulation of water, air, wildlife, flora, soil and subsoil resources.Design/methodology/approachThis research used an inductive method with a qualitative and quantitative approach. The authors postulate a systemic and comprehensive bioaccounting measurement of environmental assets, including heterogeneous and homogeneous methods and quantitative and qualitative valuations of the resources that comprise environmental assets.FindingsThe authors describe a theoretical structure for the bioaccounting measurement of environmental assets based on the sustainability of natural wealth through heterogeneous and homogeneous measurement methods and show how to integrate these assets through an homogeneous method.Research limitations/implicationsThe development of this general theoretical structure will require the integration of theoretical, conceptual and technical developments from multiple disciplines. The authors hope that the scientific community will evaluate and study this proposal for faster progress towards its practical implementation in organizations.Originality/valueThe authors structured the bioaccounting measurements, which are presented individually for each class of environmental assets. Each of these assets requires subcategories (accounts, subaccounts and resources) and recognition/measurement units. Environmental value units (EVUs) are used to standardize the plurality of measurement units.

Environmental Accounting as a Tool for Sustainable Development: An Empirical Study on Large Scale Companies in Karnataka State

Environmental Accounting as a Tool for Sustainable Development: An Empirical Study on Large Scale Companies in Karnataka State

How to account for nature-based solutions as the ecological assets that support economy and society

Nature-based solutions (NBS) are ecological assets that support economy and society with a variety of services. Through integrated environmental and economic accounting systems, it is possible to measure and monitor these services and eventually integrate NBS into decision-making processes. This commentary presents the System of Environmental and Economic Accounts (SEEA), and in particular the Ecosystem Accounting modules where NBS may find a suitable format to systematically link changes in ecological assets with services and benefits provided to economic activities and people. If well structured, such information could significantly support policy actions through transparent cause-and-effect relationships.

Climate Volatility, Foundational Freedoms, and the Environment Act 2021: The Transformative Potential of the Principle of Legality

Abstract The UK Environment Act 2021 presents a valuable case study of the importance and challenges of protecting foundational freedoms in the context of complex and ambiguous environmental legislation. This article argues that the common law principle of legality provides a vital tool for courts to uphold rights imperilled by climate volatility and environmental decline by presuming against rights-infringing interpretations of environmental statutes. Analysing key provisions of the Act and its associated Parliamentary processes, the article focuses on areas such as statutory language clarity, the scope of executive powers, and the framework for public participation. It explores how the principle of legality and other interpretive approaches could help to resolve these issues and ensure the Act is applied in a way that promotes environmental accountability. The article argues that the principle of legality has a crucial role to play in ensuring environmental law delivers on its promise to protect both the environment and foundational freedoms.

The Influence of Emotional Intelligence, Spiritual Intelligence on the Level of Understanding of Social and Environmental Accounting

Abstract This research aims to test and analyze the Direction of Emotional Intelligence, Spiritual Intelligence on the Level of Understanding of Social and Environmental Accounting. Study of 2018-2021 Class of Accounting Students, Faculty of Economics and Business, Tadulako University. This research uses a survey method, using the Slovin method sampling technique. The respondents in this research were students at Tadulako University, Faculty of Economics, majoring in Accounting, totaling 111 respondents. The research method used in this research is quantitative research using multiple linear regression data analysis, data collection techniques using questionnaires. The results of this research show that emotional intelligence and spiritual intelligence simultaneously have a significant effect on the level of understanding of social and environmental accounting. Emotional intelligence partially has a significant effect on the level of understanding of social and environmental accounting, spiritual intelligence partially has a significant effect on the level of understanding of social and environmental accounting

Relationship between Awareness and Implementation of Environmental Management Accounting–Evidence from Small and Medium-Sized Enterprises in Thailand

In this study the relationship between awareness and implementation of Environmental Management Accounting within small and medium-sized enterprises listed in Market for Alternative Investment in Thailand was explored. A descriptive and correlational study design was adopted, and questionnaires were used to collect data from 57 small- and medium-sized Thai enterprises. The results provided empirical evidence that these firms had a moderate to high level of awareness of some aspects of environmental management accounting, and were practicing it to a certain extent. Furthermore, a positive correlation (.500, p < .01) between environmental accounting awareness and accounting practice was found. Hence, this implied that when firms were aware of the impact of environmental disclosures on their operations and had access to environmental management accounting knowledge, they were more likely to adopt appropriate accounting practices. The implementation of environmental accounting among small to medium enterprises in Thailand is still in the early stages. Further support and development are required to foster implementation. Further studies are encouraged–both qualitative studies to gain deeper insights into challenges of implementing environmental management accounting, and quantitative studies about factors that would better enable its practice.

The US Economy as a Network: A Comparison across Economic and Environmental Metrics

Environmental-economic analysis is an evolving field that seeks to situate the human economy within environmental systems through its consumption of environmental resources and cycling of resources and waste products back into the environment. Environmental accounting has seen increased focus in recent years as national and regional governments look to better track environmental flows to aid in policy development and evaluation. This study outlines a conceptual environmental-economic framework founded on network science principles. An empirical study operationalizes portions of the framework and highlights the need for further research in this area to develop new data sources and analytic methods. We demonstrate a spatial mismatch between the location of water-intensive industries and the natural location of water resources (i.e., lakes, rivers, and precipitation), which climate change is likely to exacerbate. We use eigenvector centrality to measure differences in the US economy according to economic trade flow and five associated environmental flow accounts (land use, water consumption, energy use, mineral metal use, and greenhouse gas production). Population normalization helps to identify low-population counties that play a central role in the environmental-economic system as a function of their natural resources.

Environmental Cost Accounting: Integrating Sustainable Practices into the Business Decision-Making Process

Environmental Cost Accounting: Integrating Sustainable Practices into the Business Decision-Making Process

Condition of linear landscape elements improves with contiguity to protected habitats: Empirical evidence useful for agroecosystem accounting and restoration

In Mediterranean Europe, both intensification and abandonment of traditional cultural practices represent main drivers for the loss of natural and semi-natural elements in agricultural settings. Once common in rural landscapes, these habitats have to be conserved or restored to ensure resilience and resistance of agroecosystems against biodiversity loss and socio-ecological changes. In particular, linear landscape elements (LE) fall among the high-biodiversity landscape features that require to be increased in agricultural lands to facilitate species mobility and provide a wide range of ecosystem services. However, within the framework of environmental accounting procedures, there is still a need for a thorough methodology to assess conditions of LE and, subsequently, of the hosting agroecosystems. The present research is therefore aimed at (i) proposing a method for a thorough assessment of LE conditions, with a special focus on biodiversity support capacity, (ii) investigating the potential effect of extrinsic determinants on LE conditions, such as contiguity to protected habitats and governance framework, and (iii) identifying useful parameters to guide LE ecological restoration actions. Based on different structural, compositional and landscape indicators, the proposed assessment method was tested in eight administrative units of two Mediterranean Europe countries. In the study sites, favorable LE conditions were found to be strongly associated with contiguity to protected habitats, by showing marked structural continuity, dominance of trees, active dynamics, and good quality of the surrounding landscape mosaic. Potential applications of the results have been finally explored in both ecosystem accounting and ecological restoration processes.

Environmental and social accounting: An alternative vision of corporate sustainability. Part 1

Subject. This article focuses on accounting approaches in the context of reflecting the social and environmental operations of an enterprise aimed at ensuring corporate sustainable development. Objectives. The article aims to reveal the potential for sustainability disclosure in the financial accounting and reporting complex of the enterprise. Methods. For the study, I used analysis and synthesis, comparison, and generalization. Results. The article proposes the formulation of a provision as an accounting phenomenon for reflecting the company's social and environmental operations, reveals the principle of reconciliation of classical accounting objects with newly introduced ones, and it also proposes a settlement and accounting mechanism, and determines the role of non-financial reporting in relation to its financial counterpart. Conclusions. The accounting approach to reflecting the sustainable development of the enterprise helps form an objective view on this issue with the minimum necessary inclusion of non-financial accounting techniques, the list of metrics of which should be fixed.

A decision methodology for site-level ecosystem accounting

The United Nations System of Environmental-Economic Accounting Ecosystem Accounting (SEEA EA) framework is the international standard for ecosystem accounting. To date, application of SEEA EA has been predominantly at large scales, usually at landscape and national levels. However, many environmental management decisions are taken locally, in site-specific contexts. While the use of SEEA EA continues to develop at all scales, there is currently no widely endorsed methodology for employing SEEA EA at local scales, such as the site level. We present a methodology for developing site-level ecosystem accounts, describing the important decisions at each step of the process. We also provide two case studies that demonstrate the context-dependent nature of the decision-making process of ecosystem accounting at small scales. The two major challenges for site-level accounting are stakeholder engagement and data availability. As the use of SEEA EA continues to increase in policy and decision-making processes worldwide, there is a need for local-scale case studies that adapt this methodology across a broad range of contexts. Our case studies provide some of the first published examples of the application of SEEA EA at the site level and are intended to promote consistent implementation of ecosystem accounting across scales.

Does ecological accountability restrain the financialization of heavily polluting enterprises? Evidence from China

Does ecological accountability restrain the financialization of heavily polluting enterprises? Evidence from China

Analysing FDI inflow effects on CO2 emissions: a comparative study of OECD and BRICS nations with PHH and PHE models

Purpose The purpose of this study is to explore the correlation between foreign direct investment (FDI) and carbon dioxide (CO2) emissions in emerging economies, with a particular emphasis on Brazil, Russia, India, China and South Africa (BRICS) countries along with 10 the Organization for Economic Cooperation and Development nations. Design/methodology/approach This study uses quantitative research methods and econometric analysis to investigate the relationship between FDI inflows and CO2 emissions in selected countries. Specifically, the research concentrates on assessing the impact of FDI on CO2 emissions within the BRICS countries. By examining data spanning from 2000 to 2003, the study aims to shed light on the interaction between economic integration and environmental sustainability dynamics on a global scale. Findings The results of this study highlight notable contributors to CO2 emissions within the BRICS countries, identifying Switzerland, Denmark and the UK as significant sources. These findings support the notion of a pollution haven, underscoring the influence of FDI in moulding environmental outcomes in developing economies. Research limitations/implications Drawing from the study’s outcomes, suggestions are put forth to foster sustainable development strategies. It is recommended that BRICS nations prioritize the attraction of environmentally aware FDI to bolster efforts aimed at mitigating environmental harm. Originality/value This study adds to the ongoing discussion surrounding sustainable development by offering a concentrated analysis of how FDI influences CO2 emissions within BRICS countries. Its novelty lies in questioning traditional assumptions about environmental accountability and emphasizing the necessity for cooperative endeavours between emerging and developed economies to effectively tackle global environmental issues.

Optimizing environmental costs and economic benefits in new energy vehicle production: A case study of FAW Hongqi in China

This study focuses on the environmental cost accounting and economic benefit optimization of China’s FAW Hongqi New Energy Vehicle manufacturing enterprise under uncertain conditions, within the context of the emission permit system This study calculates the pollution situation throughout the manufacturing and production process of FAW Hongqi new energy vehicles, and constructs a multi-level environmental cost evaluation system for FAW Hongqi new energy vehicle manufacturing projects. Through the interval fuzzy model of FAW Hongqi new energy vehicle manufacturing projects, the maximum economic benefits of the enterprise are simulated. The research results indicate that the pollution emissions of enterprises are mainly concentrated in the three processes of welding, painting, and final assembly. Enterprises use their own exhaust gas and wastewater treatment devices to meet the standards for pollution emissions. At the same time, solid waste generated during the automobile manufacturing process is handed over to third-party companies for treatment. Secondly, based on the accounting results of enterprise pollution source intensity and a multi-layer environmental cost evaluation system, the environmental costs of enterprises are accounted for, and the environmental costs are represented in interval form to reduce uncertainty in the accounting process. According to the accounting results of enterprise environmental costs, the main environmental costs of enterprises are environmental remediation costs caused by normal pollution discharge and purchase costs of environmental protection facilities. Pollutant emission taxes and routine environmental monitoring costs are relatively low. Enterprises can adopt more scientific solutions from the aspects of environmental remediation and environmental protection facilities to reduce environmental costs. After optimization by the fuzzy interval uncertainty optimization model, the economic benefits of the FAW Hongqi new energy vehicle manufacturing project were [101,254.71, 6278.5413] million yuan. Compared with the interval uncertainty optimization model, the lower bound of economic benefits increased by 57.68%, and the upper bound decreased by 12.08%, shortening the results of the economic benefits interval. Clarify the current environmental pollution situation of FAW Hongqi’s new energy vehicle manufacturing enterprise, provide data support for sustainable development of the enterprise, and provide reasonable decision-making space for enterprise decision-makers.

AKUNTANSI MANAJEMEN LINGKUNGAN, INOVASI HIJAU, DAN DAMPAKNYA TERHADAP KINERJA MANAJERIAL

Purpose: The study aims to explain how the application of environmental management accounting and green innovation affects managerial performance in manufacturing companies listed in the BEI in 2021. Methodology/approach: Research methods using explanatory methods. Of the 198 manufacturing companies sampled using purposive sampling, 60 companies obtained samples. Findings: Research results show that environmental management accounting has no impact on managerial performance, and product innovation has an impact on management performance. Environmental management accounting has no impact because some companies charge relatively small environmental costs. But in a descriptive analysis test on the mean value, it yields a minus value, which means that the accounting company's operating cash flow value in 2020 is smaller than in 2021, thus yielding a minus. Practical implications: This is because, at the time of the COVID pandemic, the results were in line with the triple bottom line theory, which measures the performance of a company in a comprehensive way by focusing on profit-making, social concerns, and environmental conservation. Originality/value: In Stakeholder Theory, companies determine and determine environmental management strategies and accounting that are able to maintain the interests of stakeholders, which later stakeholders can contribute to the company to improve company performance and value in the future. Green Innovation can also improve managerial performance by applying new technologies (hardware or software) related to production processes that will lead to energy efficiency, pollution reduction, waste recycling, environmentally friendly design and environmental management within the company

The scientific literature on coralligenous habitat and fishing impacts

Among marine habitats, the coralligenous represents one of the most important biodiversity hotspots, also playing an important role in the carbon cycle. Coralligenous is a biogenic habitat of the circalittoral zone formed by calcareous structures built by crustose coralline algae and other assemblages of calcifying organisms. Due to its structural complexity, it is also considered one of the most vulnerable marine habitats, very sensitive to environmental changes, such as climate change, and to other anthropogenic impacts such as fishing activities. Trawling is the most harmful fishing method that is causing the degradation of large areas of coralligenous reef concretions. Small-scale and sport fishing can also cause damage to the most sensitive organisms of the coralligenous habitat that can be damaged or removed by fishing gear, both during the fishing activity and in the case of the involuntary abandonment of stranded or damaged fishing nets, also known as “ghost nets”. In this study, the global scientific literature on coralligenous habitat was explored, with a particular focus on human impacts and fishing activities. The analysis was carried out using the VOSviewer software, generating network maps based on literature data retrieved from the Scopus database. The results show that the scientific literature is mainly concentrated in Italy, proving the important contribution provided by the Italian research on the topic. The results also highlight a research gap in the application of environmental accounting methods to quantify and value natural capital and ecosystem services associated to the coralligenous habitat, and their loss due to human impacts.

Impact of Green Intellectual Capital and Environmental Management Accounting on Sustainable Performance: The Moderating Role of Stakeholder Pressure

This study investigates the impact of green intellectual capital—specifically, green relational capital (GRC), green human capital (GHC), and green structural capital (GSC)—on the sustainable performance of firms in Pakistan. It further examines the mediating role of environmental management accounting (EMA) in the relationship between green intellectual capital and sustainable performance, while also exploring stakeholder pressure as a moderator in this relationship. Data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS v.4.0.0 software. The findings reveal that while GHC and GRC show positive but insignificant relationships with sustainable performance, GSC has a significant positive impact. EMA is found to have a significant positive relationship with sustainable performance and serves as a significant mediator between GHC and sustainable performance, as well as between GRC and sustainable performance. However, EMA’s mediating effect on the relationship between GSC, and sustainable performance is insignificant. Additionally, stakeholder pressure significantly moderates the relationship between EMA and sustainable performance. The study offers valuable insights for scholars and industry professionals seeking to enhance sustainability performance and achieve a competitive advantage in the industry.