Environmental Accounting Research Articles

Unlocking the potential of digital finance: a perspective based on the quality of corporate environmental information disclosure

Abstract A pressing issue for both academia and industry is determining how to improve the quality of corporate environmental information disclosure. This study investigates the impact of digital finance on the quality of such disclosure, focusing on non-financial listed companies in China’s Shanghai and Shenzhen A-share markets from 2011 to 2022. The findings are as follows: First, digital finance and its sub-dimensions exert a significant positive influence on disclosure quality, a conclusion validated through a series of robustness checks. Second, a channel mechanism analysis reveals that digital finance enhances disclosure quality primarily by alleviating financing constraints and reducing agency costs, reflecting its effects on resource acquisition and corporate governance. Third, the positive influence of digital finance is more pronounced under weaker environmental regulation and lower public pressure for environmental accountability, suggesting that digital finance functions as an effective complement to existing environmental information supervision. This study contributes to the literature by elucidating the consequences of digital finance for corporate environmental information disclosure and extending the theoretical framework of digital finance in the context of green development.

Pentuple Bottom Line in Seaweeds Cultivation: An Environmental Accounting Review

This study explores the role of environmental and sustainability accounting in promoting sustainable seaweed farming in Indonesia. Environmental accounting records and reports the environmental impacts of economic activities, while sustainability accounting integrates economic, social, and environmental dimensions under the Triple Bottom Line (TBL) and Pentuple Bottom Line (PBL) frameworks. The research highlights how these tools can enhance seaweed farming's global competitiveness, support blue economy development, and address climate change.Using a descriptive qualitative approach, the study combines in-depth interviews with seaweed farmers, academics, and stakeholders with a literature review. Legitimacy theory is applied to analyze how transparency in sustainability reporting strengthens relationships with society and global markets.Findings reveal limited adoption of environmental and sustainability accounting in seaweed farming, despite its potential. Transparency in managing environmental impacts, such as waste and carbon absorption, is critical. Local cultural values like siri’ na pacce serve as a moral foundation for strengthening social legitimacy. Technologies like IoT and blockchain can accelerate effective environmental accounting.This study contributes by integrating environmental and sustainability accounting into the PBL framework, addressing economic, social, and environmental impacts more comprehensively. It emphasizes better governance through farmer awareness, eco-friendly technologies, and stronger regulations, positioning seaweed farming as a blue economy model. Future research should focus on cross-sector collaboration to advance sustainable fisheries and marine policies.

Netnography Study: Suitability of Environmental Accounting Reporting of PT. Halmahera Persada Lygend on the Response of YouTube and Instagram Users

This study aims to understand the suitability between environmental accounting reporting of PT Halmahera Persada Lygend (HPAL) and the reality in the field based on community responses on the YouTube platform (https://youtube.com/@haritanickel?si=rimm0rUeZOuILjBq) and Instagram (https://www.instagram.com/harita.nickel?igsh=Z2J6MTVjMTBrd2cw). As part of Harita Nickel, HPAL is committed to operational sustainability by prioritizing environmental responsibility, which includes mangrove conservation, coral reef rehabilitation, environmentally friendly smelter development, and community empowerment of Obi Island. Using a netnography approach, this study analyzes user responses and comments on both platforms regarding HPAL's published sustainability reports and the implementation of environmentally friendly principles. The 2024 Merdeka Awards won by Harita Nickel also strengthened the positive perception of the company in terms of social and environmental responsibility. Based on data during the research period from September 14 to November 11, 2024, HPAL received 5,497 likes and 368 positive comments on YouTube, and 1,581 likes and 52 positive comments on Instagram, indicating that HPAL's environmental accounting implementation is in line with public perception and emphasizes the importance of synergy between industrial operations and social and environmental sustainability.

Get the real boss in position: Examining the environmental effect of ‘shared environmental accountability’ in China

China implemented the Shared Environmental Accountability between Party Secretaries and Government Officials (SEA) policy in August 2015, aiming to enhance environmental enforcement by holding both the secretaries of the Communist Party of China (Party secretaries) and government officials accountable for environmental issues. This paper examines the environmental effect of the SEA policy, with a particular focus on the role of bureaucrats' personal traits. Based on city-level data from 2011 to 2021, we find that the SEA policy leads to a differential reduction in industrial SO2 emissions and energy consumption by approximately 15.9 % and 32.0 % in cities that have a higher pressure of environmental protection. We also find that the pro-environmental effect of the SEA policy is mainly realized by enhancing energy efficiency and cleaner production. More importantly, we find that the environmental effect of the SEA policy is strengthened by hometown ties if Party secretaries have promotion prospects. Further improvements in emission reduction and energy saving could be achieved if certain countermeasures were undertaken so that Party secretaries, regardless of their promotion potential, are incentivized to faithfully implement environmental regulations.

Green Intellectual Capital and Corporate Environmental Performance: Does Environmental Management Accounting Matter?

This study investigates the relationship between green intellectual capital and corporate environmental performance, with a specific focus on the moderating role of environmental management accounting. Data were collected from a sample of 298 employees working in the Egyptian industrial sector and analyzed using smart partial least squares (SmartPLS) software. The empirical results revealed a statistically positive and significant impact of all green intellectual capital components on corporate environmental performance, indicating that green intellectual capital is a critical determinant in enhancing environmental performance. Further, the analysis reveals that environmental management accounting functions as a significant moderator in the relationship between green intellectual capital and corporate environmental performance. The model explains 80.2% of the variance in corporate environmental performance, providing strong empirical support for this study’s hypotheses. These findings have important practical implications for companies working in the Egyptian context. They can help in guiding the development of corporate policies and strategies that improve environmental performance. This research also makes a significant contribution to the literature by being one of the first to study the moderating role of environmental management accounting practices in an emerging market like Egypt, as most early studies have concentrated on the direct relationship between green intellectual capital, environmental management accounting, and corporate environmental performance. This helps in better understanding of these concepts and how they interact.

Global material flows and resource productivity: The 2024 update

AbstractAccurate assessments of global primary material extraction, trade of primary materials and products, material use, waste, and emissions support the development of policies that facilitate the decoupling of economic activity, natural resource use, and related environmental impacts. Here, we quantify all crucial aspects of global and country‐by‐country material requirements needed to fuel economic activities, covering both territorial‐ and demand‐based indicators. These data have been assembled by a consortium of research partners that compile the global material flow and resource productivity online database for the International Resource Panel, which contributes to the global dataset for the System of Environmental–Economic Accounting (SEEA) framework and is employed to monitor progress for the Sustainable Development Goal (SDG) indicators 8.4 and 12.2. We present the main findings of the 2024 update, including methodological improvements and result differences, and discuss the main findings and limitations. Since the last update, we have identified a slowing of global materials extraction since about 2014, a continuation of solid growth in direct trade of materials and products, persistent inequality in resource use between high‐ and low‐income countries, and a prolonged improvement in global material productivity. The full dataset used herein can be downloaded from the Global Material Flow Database hosted by the United Nations Environment Program International Resource Panel.

Unveiling the Future of Environmental Management Accounting: A Systematic Review of Trends and Innovations

Unveiling the Future of Environmental Management Accounting: A Systematic Review of Trends and Innovations

Environmental Strategy and Environmental Management Accounting as Contributors to Environmental and Financial Performance: The Case of Manufacturing Firms in Vietnam for the Sustainable Development Goals (SDGs)

Environmental Strategy and Environmental Management Accounting as Contributors to Environmental and Financial Performance: The Case of Manufacturing Firms in Vietnam for the Sustainable Development Goals (SDGs)

An analysis of the use of 3D game engine technology in visualising sustainability data

Purpose Responding to calls for accountants to engage with modern technologies and explore data visualisation within a three-dimensional (3D) environment, this study aims to explore whether social and environmental accounting (SEA) data visualisation is a promising use case for 3D game engine technology. Design/methodology/approach Drawing on visual perception and embodiment theories, this study uses photo-elicitation, a qualitative research method, to explore the usefulness of two-dimensional (2D) and 3D visualisations of sustainability information in a 3D virtual environment. This study provides three stimuli: numerical data, 2D visualisations and 3D visualisations, and asks open-ended questions regarding future applications. Twelve semi-structured interviews were conducted with academics, preparers and users of sustainability reports to obtain responses to these stimuli. Findings The key finding is that visualisation of SEA information may indeed be a strong use case for 3D game technology, but only for certain data and for certain audiences. Presenting information within a 3D virtual environment offered enhanced engagement and contextual understanding but reduced navigation speed and data clarity. Participants were enthusiastic about the potential of a museum-like experience, incorporating interactivity and community, but felt that the appropriate audience was more likely to be novices than experts. Practical implications This study suggests that deploying 3D game engine technology can be a powerful tool for presenting sustainability information but requires significant resources. The optimum audience is likely to be novices, and a key design principle is to ensure the virtual environment supports, rather than overwhelms, the information presented within that environment. Originality/value This study introduces a novel application of 3D visualisation technology within the SEA context, offering original insights into its potential to enhance user understanding and decision-making capabilities. This study highlights the technology’s value not as a replacement for traditional reporting but as a supplementary educational tool. The study also provides a novel setting for the photo-elicitation method, demonstrating this approach’s utility in a 3D environment.

Confined Truths and Cognitive Ecologies: When the Social Pursuit of Questioning Becomes Unreliable

AbstractThe capacity to distinguish reliable or rationally believable claims from a huge pool of views available within the public arena has never been as critical an issue as it is today. We live in a world full of bizarre, unwarranted beliefs and conspiracy theories, some of which may seem, at least on the face of it, quite well justified. Moreover, some of them may even turn out to be true. This poses a significant social-epistemological as well as practical problem. Here I propose to single out a group of beliefs known as confined truths. These are true beliefs belonging to a pathological question-answer system. The paper first provisionally articulates this idea and then makes the case for an ecological account of questioning and answering, thought of as social pursuits made possible by the capacity for problematization. The latter shall be characterized as part of cognitive engineering or niche construction. In the final part of the paper, various possible dysfunctionalities of the social/ecological pursuit of problematization are elicited and suitable examples thereof are briefly discussed.

Insight into how Environmental Management Accounting Practices and Complexity of Green Innovation Management Pave the Way Toward Strategic Resilience

Insight into how Environmental Management Accounting Practices and Complexity of Green Innovation Management Pave the Way Toward Strategic Resilience

Social and Environmental Accounting for Sustainable Development and Potential Research in Vietnam

Social and Environmental Accounting for Sustainable Development and Potential Research in Vietnam

Environmental Accounting Disclosures Related to IFRS S1 and IFRS S2 Policies: Evidence on Hospital Companies Listed on the Indonesia Stock Exchange

This study aims to evaluate environmental accounting disclosures related to IFRS S1 and IFRS S2 policies in hospital companies listed on the Indonesia Stock Exchange. The method carried out is qualitative descriptive with an evaluation approach to the company's sustainability report that is published. The results of the study show that the majority of hospital companies have disclosed their environmental costs and sustainability aspects according to IFRS S1 standards because they comply with the rules that apply in Indonesia, namely the Financial Services Authority Regulation Number 51/POJK.03/2017 and The Global Reporting Initiative 2021. However, there are still few companies that disclose aspects of IFRS S2 related to climate because they have not been regulated in the regulations that apply in Indonesia in the publication of company reports. Now, after the issuance of the IFRS S2 standard, the government should adjust the rules related to company reporting. Companies should also be more aware in reporting the climate impact of their business activities.

A theoretical approach to address environmental management accounting implementation barriers in small and medium enterprises in developing countries

Universal approaches to implementing environmental management accounting (EMA) have resulted in a paradigm shift in managing the physical and monetary aspects of the environment globally. While in developing countries, large enterprises continue to lead in implementing EMA, small and medium enterprises (SMEs) are finding it difficult to optimally benefit from embracing EMA. Hence, various players such as policymakers, academics, and environmental experts promote the establishment of new approaches that SMEs can apply to overcome a wide range of barriers inhibiting the successful implementation of EMA. Theories of small business growth, such as stakeholder and institutional, resource-based, and knowledge-based theories, advocate that an enterprise's success depends on the influence of stakeholders' expectations and institutional requirements and the management of the available resources and relevant expertise. A customised framework for applying these four (4) theories to understand the position of SMEs regarding EMA implementation barriers and the approach to address them is lacking. Therefore, in this article, we used a systematic literature review (SLR) using Preferred Reporting Items for Systematic Literature Review (PRISMA) to define the main aspects of these four (4) theories in the context of EMA implementation and identify EMA implementation barriers confronting SMEs. We recommend that SMEs consider applying the proposed framework to address EMA implementation barriers. The outcomes presented have implications for SME owners, government, environmental regulators, and large enterprises in establishing strong networks to encourage the implementation of EMA across the business spectrum.

Implementation of Environmental Accounting Policies in Hospitality Business in an Effort to Improve Tourism Sustainability in the Lake Toba Region

The Lake Toba area is an iconic tourist destination in Indonesia that faces major challenges in preserving its ecosystem. Stakeholders, especially hotel companies, need to be able to develop more effective strategies to achieve sustainable tourism in the Lake Toba area. The aim of this research is to find out the relationship between hotel companies' environmental accounting policies and driving factors, including hotel companies' corporate social responsibility (CSR) programmes, management support and community support. The research method used in this research is mixed method research (qualitative and quantitative). Analysis of qualitative data processing using Nvivo. Then, quantitative analysis using data analysis methods, namely by testing questionnaires, validity, reliability, data normality, multicollinearity, heteroscedasticity, multiple regression analysis, and testing the coefficient of determination of the best fit model. The results of the qualitative research with Nvivo based on the concept of tourism sustainability are CSR, environmental issues, public image and environmental accounting policies. The results of the quantitative research based on the partial test showed that CSR and management support had a significant effect on the accounting policy of the hotel business environment, while the community support variable had no effect on the accounting policy of the hotel business environment.

Environmental Cost Management Accounting in Fdi Enterprises

Environmental Cost Management Accounting in Fdi Enterprises

Pengaruh Akuntansi Lingkungan dan Audit Lingkungan Terhadap Sosial Ekonomi Masyarakat dengan Good Corporate Governance Sebagai Pemoderasi

The issue of environmental pollution is often a hot topic in discussions. Companies are asked to take part in conservation through special financing related to the environment and compliance with environmental management to safeguard stakeholder interests and maintain good relations with the surrounding community. This research aims to determine the influence of Environmental Accounting, Environmental Audit implemented by companies on the Social Economy of the Community with the principles of Good Corporate Governance as a moderator. The data source used is primary data through tabulated questionnaires distributed to several companies in Karawang Regency via the LinkedIn social media application. The random sampling technique produced a sample of 66 respondents among employees who work at companies in Karawang Regency. Testing uses Partial Least Square (PLS SEM) analysis using Smartpls version 4.0. The results of the research show that Environmental Accounting has no effect on Community Social Economy, but Environmental Audit has a positive influence on Community Social Economy. Good Corporate Governance has a direct influence on the social economy of society, but cannot moderate the influence of Environmental Accounting and Environmental Audit on the social economy of society.

Analisis Penerapan Akuntansi Lingkungan (Green Accounting) pada Pengelolaan Limbah Industri di PT Atsumitec Indonesia

This research primarily investigates the application of environmental accounting, often known as green accounting, in the management of industrial waste. Ecological accounting is an accounting system that incorporates environmental factors into the process of making economic decisions. The objective of this study is to investigate the application of environmental accounting in waste management for the purposes of cost reduction, delineation of environmental responsibilities within the organization, and generation of environmental cost reports to facilitate decision-making by management. This study employs a comparative descriptive methodology, including data collection methods such as interviews, archival recordings, and direct observation. Research findings indicate that PT Atsumitec Indonesia currently lacks a dedicated financial report for waste management. Thus, in order to effectively manage accountability, this study must include environmental accounting methods for waste management.

The Legal Regime of the Areas Beyond National Jurisdiction in the BBNJ Agreement and Lessons Learned for Space Law

As a result of the discussions on ocean pollution in recent years, the ‘Agreement under the United Nations Convention on the Law of the Sea on the Conservation and Sustainable Use of Marine Biological Diversity of Areas Beyond National Jurisdiction’ (also known as the BBNJ Agreement) was signed on 4 March 2023. One of the most notable aspects of the Agreement in question is that it imposes certain responsibilities on states in a region that are not subject to the sovereignty of any state, while states may extend their jurisdictional authority to these regions only in the case of certain exceptions such as registration.This development can serve as a significant illustrative record of the interaction between environmental protection and state accountability in places like Antarctica or outer space, which are also not under state jurisdiction. This study addresses the lessons learned from the BBNJ Agreement for the environmental protection of outer space by examining benefit-sharing mechanisms, area management tools, and environmental impact assessment in the BBNJ Agreement and makes suggestions on how to strengthen the protection of the space environment through these mechanisms.

Evaluating the Viability and Potential of Hybrid Solar-Wind Renewable Energy Systems in Relation to Geographical and Environmental Factors

This study provides an in-depth evaluation of the potential for hybrid solar-wind renewable energy systems in a specific region, emphasizing the influence of geographical and environmental factors on the feasibility of renewable energy development. Using a combination of Geographic Information Systems, the Best-Worst Method, and Fuzzy Logic, the research identifies the most suitable areas for renewable energy development. The results indicated that 14% of the region is highly suitable for wind energy projects, while 28% shows moderate potential for solar energy harvesting, and only 5% of the area is deemed unsuitable for hybrid systems, reflecting the region strong renewable energy potential. However, 34% of the area has limited suitability, highlighting suboptimal conditions for energy production, and 45% is moderately suitable, suggesting a wide range of renewable energy opportunities. Geotechnically, 16% of the terrain is classified as ideal for hybrid systems, marking it as a prime zone for integrating solar and wind technologies. Environmentally, challenges exist in 23% of the area due to unsuitability, while zones with limited and moderate environmental suitability account for 36% and 33%, respectively. Careful environmental planning is necessary in these regions to maximize potential. Ultimately, only 8% of the area aligns perfectly with both environmental and renewable energy goals, demonstrating the complexity of balancing renewable energy development with environmental considerations.