Environmental Accounting Research Articles

Redefining global entrepreneurship: shifting focus from China to Central and Eastern Europe

Purpose The purpose of this paper is to explore the viability of shifting foreign direct investment (FDI) from China to Central and Eastern European (CEE) countries in light of recent geopolitical and economic challenges. By analyzing case studies, it argues that CEE nations offer a compelling alternative for Western European businesses, with stronger intellectual property protection, political stability and alignment with European Union (EU) sustainability goals. The paper provides insights for firms and policymakers on mitigating risks and enhancing business operations by pivoting toward the CEE region, offering practical recommendations for adapting to shifting global trade dynamics. Design/methodology/approach The design methodology uses the case study approach to analyze the shift of FDI from China to CEE. This method examines the geopolitical, economic and legal contexts influencing business decisions, using real-world examples of Western European companies that have made this transition. The case studies highlight key factors in decision-making and the benefits of relocating investments to the CEE region. Findings The study identifies several advantages of the CEE region over China for Western European firms. These include geographic proximity, similarities in business values and purposes, environmental accountability, trustworthiness in business, enforceable noncompetition rules, lower risks of counterfeiting, reduced political and administrative risks, lower risks of intellectual property theft and reduced risks of negative publicity. Practical implications The findings suggest that Western European firms should consider redirecting their FDI to the CEE region to mitigate risks associated with investing in China. This move could offer long-term benefits despite short-term complications. Originality/value This paper contributes to the FDI theoretical framework by enhancing the cultural, administrative, geographic and economic (CAGE) distance framework. It provides a unique perspective on the shifting dynamics between Europe and China and highlights the potential of the CEE region as a viable alternative for FDI.

Environmental Accounting and Sustainability: A Meta-Synthesis

This study conducts a comprehensive meta-synthesis of review-based research on environmental accounting, spanning from 1995 to 2024. Environmental accounting, also known as green accounting, has evolved as a critical tool for integrating sustainability into corporate financial practices. Using bibliometric methods via Bibliometrix R-package (Biblioshiny—Version 4.2.0) and VOSviewer (Version 1.6.20), the research mainly examines scholarly discussion in review-based studies and identifies dominant themes. The main clusters identified are (1) environmental audits and management, (2) green accounting, financial reporting and sustainable development, (3) CSR, stakeholder engagement, and accountability, and (4) environmental accounting and protection. On the descriptive end, publication trends, prominent authors, articles, and sources are identified. The findings highlight a significant increase in review-based studies since 2022, coinciding with the growing global awareness and importance of sustainability. This study contributes to the field by consolidating fragmented research on environmental accounting, offering a framework for future academic exploration. Practically, it informs policymakers and business leaders on the importance of unified reporting standards across regions; integrating environmental considerations into financial decision-making; promoting transparency, accountability, and sustainability accounting; and disclosure across industries and regions.

Two Years in the Making: Co-Learning Insights from the CSEAR’s Education Community of Practice

ABSTRACT As the imperative to address unsustainability grows, higher education institutions, individual academics, scholarly networks, and professional bodies are calling for sustainability to be (more prominently) embedded in curricula. Over the past 30 years, a strong body of work has been published related to social and environmental accounting education such as textbooks, academic articles, and teaching cases. Yet, the individual and collective endeavours scholars undertake to develop and embed social and environmental accounting education within their respective institutional contexts often remain invisible. Insights may be gleaned thanks to corridor conversations, informal networks, one-off workshops, or panel discussions. To further strengthen capacity to undertake such education, a community of practice approach might help connecting individuals and sharing experiences. This commentary outlines the aims of the CSEAR Education of Community of Practice, the process of establishing and running this community, and offers preliminary reflections following the first two years of its existence. Finally, we consider the next steps in the development of this initiative as means to enhance collective efforts to mobilize social and environmental accounting education to enable a more sustainable society.

Systematic Review of Environmental Uncertainty, Environmental Management Accounting and Sustainable Performance

Sustainable performance has emerged as a critical concern in the modern era. Consequently, numerous scholars and researchers are exploring innovative approaches across various disciplines within the social and applied sciences. While the advantages of environmental management accounting (EMA) are well-documented, environmental uncertainty is insufficiently studied yet in many countries and industries. This systematic review seeks to identify the barriers, including environmental uncertainty, that hinder the implementation of EMA practices. Additionally, it examines the scholarly flow and publication toward literature enrichment and practical implementations. The study complies with the Preferred Reporting Items for Systematic Reviews (PRISMA) guidelines. conducted on fifty-one primary articles from Web of Science, Science Direct, and ProQuest databases published in the period 2000-2024. The findings reveal several compelling reasons for adopting EMA to improve sustainable performance, despite challenges like environmental uncertainty that obstruct the implementation of effective EMA practices toward performance sustainability.

Tracing offshore marine ecosystem asset changes based on physical accounting: A case of Xiamen Sea Area

Assessing temporal and spatial changes in marine ecosystem assets is critical for the capitalized management of natural resources and their contribution to human well-being. However, quantifying these changes using different inclusion methods in the System National Account is a challenge. Ecosystem accounting has become a popular topic in recent years, particularly after the System of Environmental and Economic Accounting-Ecosystem Accounting was published in 2021. However, few practical studies have been conducted on offshore marine ecosystem accounting, including marine ecosystem assets and services. This study provides a systematic framework to prioritize the assessment of offshore marine ecosystem assets (extent and condition) in physical terms, including the determined indicators of physical accounts and the presentation of accounting results. We then used this framework to assess marine ecosystem assets in the Xiamen Sea Area selected from 2006 to 2020. The results show that: (a) The extent of the marine ecosystem in Xiamen decreased by 8.34% from 349.64 km2 to 320.49 km2, mainly caused by converting intertidal ecosystem into the land due to the demand for urban and industrial use sea. (b) The area of intertidal vegetation habitats (mangroves and salt marshes) increased from 23.22 hm2 to 132.2 hm2, with an increase of 4.7 times. The results also show that the restoration of the marine ecology in Xiamen has achieved remarkable results. (c) The marine ecosystem condition comprehensive index in Xiamen increased by 3.13% from 0.32 to 0.33. This shows that the marine ecosystem conditions in Xiamen remain well and have even slightly improved under the pressure of a rapidly developing economy and increasing population. This study provides practical technical methods for assessing offshore marine ecosystem in physical term to support integrated coastal management in coastal cities, and is important for assessing marine ecosystem services in the future.

Edukasi Penerapan Prinsip Akuntansi Lingkungan Melalui Efisiensi Energi dan Pengelolaan Limbah Pada UMKM Tambakrejo Semarang

Management understanding and knowledge of environmental accounting, especially related to waste management and energy efficiency, is very important to achieve business sustainability, including for Micro, Small, and Medium Enterprises (MSMEs). The Tambakrejo MSME group often lacks understanding of milkfish waste management and faces increasing energy operational costs, especially for refrigerators. Lack of environmental awareness causes milkfish waste to pollute the environment and hinder water drains. Environmental accounting integrates environmental aspects in accounting practices to measure, report, and manage environmental impacts. This Community Service educates about waste management strategies and energy efficiency based on environmental accounting principles. The results of Community Service have a positive impact, the enthusiasm of MSME actors is very high, this is evidenced through pre and post testing measuring tools for MSMEs with the results of the increasing level of public understanding of environmental awareness and energy saving in MSMEs, as well as teaching environmental cost management methods through identification, recognition, measurement, reporting, and integration of environmental aspects in the accounting system.

Accounting and Healthcare Waste Management: Strategies to Improve Financial Efficiency and Reduce Environmental Impact

Healthcare waste management represents both a financial and environmental challenge for healthcare institutions. This article discusses accounting and financial management strategies that can be implemented to optimize operational costs related to healthcare waste disposal, while minimizing environmental impact. A theoretical framework based on financial and environmental sustainability is proposed, integrating environmental accounting policies and waste management methodologies. The results demonstrate that adequate financial planning and the implementation of treatment technologies can significantly reduce costs and improve efficiency in healthcare waste management. The findings highlight the need for more robust management policies and greater investment in sustainable treatment technologies.

Assessing the Impact of Environmental Accounting Message Disclosure Quality on Financing Costs in High-Pollution Industries

This article explores the relationship between environmental accounting message disclosure quality and financing costs in environmentally impactful industries. Utilizing a mixed-methods approach, it combines quantitative analysis of financial indicators with qualitative insights from industry experts. The findings indicate a significant correlation between high-quality environmental message disclosure and lower equity financing costs, suggesting that investors prioritize sustainability in their decisions. Companies that demonstrate greater environmental accountability enjoy improved access to capital. The article concludes that integrating robust environmental accounting practices and effective message disclosure is essential for fostering sustainable business practices, enhancing long-term financial viability, and promoting a culture of sustainability and resilience in the face of environmental challenges

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

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.

Environmental Management Accounting Practices: The Use, Motivations and Barriers for Large Manufacturing Firms in Lower Northern Provinces Group I, Thailand

This work studies environmental management accounting practice (EMAP) that enterprises apply to ensure the prevention of environmental damage caused by their daily operational activities, including motivations and barriers to adoption. A descriptive study was performed in 10 large manufacturing enterprises in the lower northern provinces group I Thailand via semi-structured interviews and in-depth qualitative interviews with manager/ owner. The result shows that half of the enterprises have implemented EMAP as a requirement for qualifying for ISO 14001 certification. The rest only prepare internal reports for planning, controlling and making operational decisions related to environmental information. The result also indicates that strict legislation, integrating environment into corporate strategy, and sufficient resources play a vital role in EMAP adoption. In addition, this study indicates that the key barriers limiting the implementation of EMAP are lack of resources, knowledge/ expertise/ guidance, and internal difficulties, respectively. This study gives contributions to the government, managers and relevant authorities by providing useful information on the motivations and barriers influencing EMAP adoption, which can help them to establish policy in the field of environmental management. Furthermore, it suggests that managers value EMAP for internal management not only for improvement of environmental performance but also increasing the role of accounting in business.

Unveiling Phenotypic and Environmental Dynamics: Exploring Genetic Stability and Adaptability of Faba Bean Cultivars in Norwegian Climates

ABSTRACTThis study evaluated 22 spring‐type faba bean cultivars in the main areas for cultivation of faba bean in Norway to assess the variation of 14 faba bean traits due to cultivar (G), environment (E), and their interaction (G × E), and to assess their stability across environments by using the additive main effects and multiplicative interaction (AMMI) analysis and coefficient of variation (CV). Significant G, E, and G × E effects were found for most traits, with environment accounting for much of the variance in yield and the growing degree days (GDD) to different developmental stages. Yield was highly correlated with thousand kernel weight (TKW) and GDD to BBCH 89 (maturation). The stability of the cultivars was studied for yield, TKW, and GDD to BBCH 89. Stability analysis using the AMMI stability value, yield stability index, CV, and the average sum of ranks identified Birgit, Stella, Bobas, and Macho as the most stable high‐yielding cultivars across environments, achieving a mean yield of 6–6.4 tons ha−1. Bobas, Macho, Stella, and Yukon had the most stable TKW (612–699 g) and Bobas, Capri, Trumpet, and Vertigo were the most stable regarding GDD to BBCH 89 (1257°C days, with a base temperature of 5°C). These stable cultivars can be utilized in breeding programs to achieve high and stable faba bean yield in the main growing areas of Norway and other Nordic‐Baltic countries.

Environmental Management Strategies for Cost-Effective Waste Management in Hospitals

General background: Waste management in hospitals is crucial due to its environmental impact. Specific background: RSU Al Islam HM Mawardi Krian struggles with waste management while adhering to PSAP No. 1 of 2010 and maintaining efficiency. Knowledge gap: Limited research exists on applying environmental management accounting and operational strategies for hospital waste management in line with accounting standards. Aims: This study analyzes the impact of environmental management accounting and strategies on waste management costs at RSU Al Islam HM Mawardi Krian, assessing compliance with PSAP standards. Results: The hospital has implemented processes of identification, recognition, measurement, recording, presentation, and disclosure per PSAP No. 1 of 2010, managing waste effectively and incurring environmental costs. Novelty: Offers insights into aligning hospital environmental cost management with government standards. Implications: Structured environmental accounting and strategies can enhance waste management, improve hospital reputation, ensure regulatory compliance, and potentially increase revenue. Highlights: RSU Al Islam HM Mawardi complies with PSAP No. 1 of 2010 in managing waste costs. Proper environmental accounting improves transparency and operational efficiency. Structured strategies can boost hospital reputation and revenue. Keywords: Environmental Management Accounting, Operational Strategies, Waste Management Costs, Hospital Compliance

Looking Backward, Looking Forward

This essay discusses three themes of my scholarly life from my student days up to today. They involve technological change, environmental accounting, and energy-climate-economic analysis. These themes have common analytical roots in the economic theory of public goods and encounter thorny issues of governance because of the Westphalian roots of international law and practice. Many of the issues, such as devising measures of natural capital and the need for strengthened international institutions, are just as pressing today as they were during my student days in the 1960s. In writing this, the enduring insight is that hindsight is the best foresight.

Degree of Impact of Applying Environmental Cost Accounting on Tax Revenues from Oil Companies Operating in Iraq

Protecting the environment and its natural resources is an issue of great importance at the local and global levels. The phenomenon of environmental pollution resulting from the work of oil companies is one of the dangerous phenomena facing the environment in Iraq in general, and the environment of Kirkuk Governorate in particular, as the latter is considered one of the governorates rich in mineral resources, especially oil, as it contains six oil fields, and it contains the largest oil field in Iraq. Estimates indicate that it produces (40%) of the total Iraqi oil, so it suffers from a significant increase in the proportions of toxic and environmentally polluting gases resulting from the work of these companies in it. The work of oil companies from exploration, extraction and refining oil will naturally result in the emission of many gases that are highly toxic, dangerous and harmful to human health. The most important of these gases are carbon monoxide, sulfur dioxide, nitrogen dioxide, hydrocarbon compounds, hydrogen sulfide and other gases that pollute the environment, which has resulted in the spread and increase in the number of patients with respiratory diseases in a clear and increasing manner in the governorate. This increase in environmental costs falls on society as a whole, so it was necessary to identify and measure environmental costs from the society’s point of view and work to re-charge them to oil companies by applying the environmental tax.

Pengaruh Ketidakpastian Lingkungan dan Komitmen Organisasi Terhadap Kinerja Manajerial Dengan Kualitas Sistem Informasi Akuntansi Manajemen Sebagai Variabel Intervening

This study aims to directly test and analyze the Influence of Environmental Uncertainty, Organizational Commitment and Quality of Management Accounting Information Systems on Managerial Performance and indirectly to test and analyze directly the influence of Environmental Uncertainty and Organizational Commitment on Managerial Performance with the Quality of Management Accounting Information Systems as an Intervening Variable in Star Hotels in Medan City. The research approach uses quantitative associative. The population of this study is all 3 to 5 star hotels in Medan City, totaling 48 hotels with a total sample of 240 respondents. This study uses the Structural Equation Modeling (SEM) analysis method using SmartPLS.3 software. Based on the results of direct hypothesis testing, there is an influence of environmental uncertainty, organizational commitment and management accounting information systems on managerial performance. Indirectly, there is an influence of environmental uncertainty and organizational commitment on managerial performance mediated by management accounting information systems

Analisis Penerapan Akuntansi Lingkungan Terhadap Pengendalian Biaya Operasional Pengelolaan Limbah pada Rumah Sakit Karya Husada

This research aims to find out how environmental accounting is applied to control operational costs for waste management at Karya Husada Hospital. This research was conducted using qualitative methods. Data sources use primary data and secondary data. The data analysis technique used is descriptive qualitative using the Miles and Huberman model. The results of this research show that Karya Husada Hospital has managed its waste well, this is proven by the absence of problems or complaints from the surrounding community regarding waste at the hospital. Karya Husada Hospital has implemented environmental accounting and carried out the process of Recognizing, Measuring, Recording, Presenting, and also Disclosure of environmental related costs. Karya Husada Hospital does not have a specific environmental cost report. Controlling operational costs for waste management at Karya Husada Hospital has not been effective, where there has been a deviation from realized costs exceeding previously budgeted costs. This deviation occurred because the amount of medical and domestic waste increased along with the increase in patient and family visits at Karya Husada Hospital.

Identifying the institutional modalities for commencing Environmental-Economic Accounting for the ocean

Ocean Accounting (OA) is an emergent framework to collate environmental, economic, and social data in a standardised manner, aligned with existing international statistical accounting standards. This involves the recording of the interactions between the ocean and the economy, considering both the contributions of the ocean to economic activities and the impacts of human activities on the ocean. The OA framework offers a multidisciplinary approach to deriving statistics and indicators that consider the ocean’s contribution to society and the economy. As implementation of OA increases globally, there is a need to understand the modalities in which governments commence activities, including potential impacts to the use and maintenance of accounts into the future. Here, we conduct a global review of countries that have commenced OA activities and define the modes of implementation across 24 identified countries. Two modes were identified, (i) government-led (13 countries) and (ii) externally led (i.e., non-government institutions, 11 countries). To determine the strategic and operational implications associated with each mode, the study performed a Strength-Weakness-Opportunity-Threat (SWOT) analysis via expert elicitation. The SWOT analysis of government-led implementation identified strengths in centralised coordination and alignment with policies, but weaknesses included limited expertise and resources. External institutions (e.g., universities or consultants), despite offering diverse expertise and cost-effectiveness, face challenges such as legitimacy issues and misalignment with government policies, posing risks to program sustainability. As OA activities progress, countries may transition from externally led implementation to government-led projects. Understanding each mode's implications offers important insights for countries considering future implementation of OA.

Certified B Corps: An Examination of a Standard Based Approach to Stakeholder Governance

In 2015, B Corp certification was launched in the UK. Since then, over 1,200 companies have adopted certified B Corps status. Most certified B Corps in the UK are small and medium-sized, with SMEs accounting for 99.9% of businesses in the UK. The B Corp movement seeks to change the economic system from a shareholder capitalism to a stakeholder economy. Certified B Corps adopt a stakeholder-driven mode towards ‘high standards of social and environmental performance, accountability and transparency.’ The article explores the growth of the B Corp movement, issues around its standards, certification process, including the legal requirement, transparency, and governance. It examines the effectiveness of this standard-based approach for stakeholder governance. It argues that the certified B Corp creates an avenue for stakeholder governance. However, to fully realise the shift towards stakeholder governance, there is a need for greater work towards achieving accountability for all key stakeholders identified as shareholders, workers, community, environment, and customers.

Long-Term Elasticity of Environmental Demand: Environmental Protection Expenditures in Sweden, 1972–2020

This study uses reconstructions of historical Environmental Protection Expenditure Accounts (EPEA) in Sweden from 1970–2020 to present a time series approach that analyses the demand for environmental services. The paper’s aim is to analyse environmental adaptation as a historical, economic and environmental process and to explore structural shifts suggestive of an overall periodisation of environmental demand. The article contributes to a deeper understanding of demand-side factors in environmental adaptation as part of contemporary economic history. The investigation also provides evidence that the income elasticity of environmental demand was slightly higher than 1.0 and largely stable over time, and even though we were able to detect trend breaks, there is insufficient evidence for major structural breaks suggesting sharp shifts in societal environmental preferences. Policies requiring sharply rising environmental expenditures should consider this level of historical stability. This article was published open access under a CC BY licence: https://creativecommons.org/licences/by/4.0 .

Sustainable Cost Management and Green Business: The Role of Managerial Accounting Innovations

This research explores the impact of innovations in managerial accounting on sustainable cost management, focusing on the integration of green business practices. The objectives are to analyze how technological, process, strategic, and organizational innovations contribute to cost savings and sustainability performance, and to provide recommendations for practitioners and policymakers. A quantitative research design was employed, utilizing case studies from various industries. Data collection involved detailed analysis of company reports and sustainability metrics, while statistical techniques were used for data analysis. Key findings reveal that big data analytics and real-time reporting significantly enhance energy efficiency and cost savings, aligning with existing literature on the benefits of data-driven decision-making. Activity-Based Costing (ABC) and Environmental Management Accounting (EMA) improve cost allocation accuracy and environmental cost tracking, resulting in substantial cost reductions. Strategic frameworks like the Balanced Scorecard (BSC) and Life-Cycle Costing (LCC) effectively integrate sustainability goals with business objectives, promoting long-term financial and environmental benefits. Organizational practices, including cross-functional teams and strong top management commitment, are crucial for successful sustainability initiatives. The study concludes that these innovations in managerial accounting are vital for achieving sustainable cost management. Recommendations for practitioners include investing in advanced technologies, adopting strategic costing methodologies, and fostering a collaborative organizational culture. Policymakers are advised to create incentives and regulations that encourage sustainable practices. Future research should focus on the long-term impacts of these practices, industry-specific adaptations, and the socio-economic benefits of sustainable cost management. This research contributes to the growing body of knowledge on sustainable business practices and provides practical guidance for enhancing sustainability through managerial accounting innovations.