The Evolution of Green Accounting: A Critical Review of Objectives, Challenges, and Recent Developments
DOI:
https://doi.org/10.32939/swzxf906Keywords:
Environmental Accounting, Environmental, Social, and Governance, Green Accounting, Sustainability ReportingAbstract
Purpose: This study aims to critically review the evolution of green accounting by examining its objectives, regulatory developments, implementation challenges, and current practices at both the international and Indonesian levels.
Design/Methodology/Approach: This study employs a qualitative approach using a library research method with a critical literature review design. Secondary data were collected from peer-reviewed journal articles, international sustainability standards (IFRS, ISSB, GRI, and IFAC), and Indonesian regulations. The collected data were analyzed using qualitative content analysis through thematic synthesis and comparative analysis.
Findings: The findings reveal that green accounting has evolved into a strategic sustainability accounting framework driven by stakeholder expectations, sustainability reporting, and ESG integration. However, its implementation continues to face challenges related to organizational readiness, inconsistent environmental measurement, and the risk of greenwashing.
Research Implications: This study provides a comprehensive understanding of green accounting developments and offers practical insights for policymakers, researchers, and business organizations to strengthen sustainability reporting and harmonize environmental accounting practices.
References
Abbasabadi, Y., Tehrani, R., & Janani, M. H. (2022). From Environmental Accounting to Integrated Reporting: Towards a New Approach to Environmental Disclosure. Journal of Advances in Environmental Health Research, 10(2), 95–104. https://doi.org/10.32598/JAEHR.10.2.1222
Amaliah, S., & Candra, Y. T. A. (2024). Pengaruh Green Accounting Dan Environmental, Social, And Governance Disclosure Terhadap Nilai Perusahaan Pada Perusahaan Consumer Non-Cyclicals Yang Terdaftar Di Bursa Efek Indonesia (Periode 2021-2023). Jurnal Ekonomika Dan Bisnis (JEBS), 4(6), 1529–1534. https://doi.org/10.47233/jebs.v4i6.2184
Asiaei, K., Bontis, N., Alizadeh, R., & Yaghoubi, M. (2021). Green Intellectual Capital and Environmental Management Accounting: Natural Resource Orchestration in Favor of Environmental Performance. Business Strategy and the Environment, 31(1), 1–18. https://doi.org/10.1002/bse.2875
Burritt, R. L., Schaltegger, S., & Christ, K. L. (2023). Environmental Management Accounting – Developments Over the Last 20 Years from a Framework Perspective. Australian Accounting Review, 33(4), 336–351. https://doi.org/10.1111/auar.12407
Del Gesso, C., & Lodhi, R. N. (2025). Theories Underlying Environmental, Social and Governance (ESG) Disclosure: A Systematic Review of Accounting Studies. Journal of Accounting Literature, 47(2), 433–461. https://doi.org/10.1108/JAL-08-2023-0143
Erstiawan, M. S. (2024). Mapping Green Accounting Research Trends in Indonesia : A Systematic Literature Review Perspective from 2017 to 2024. GREENOMIKA, 6(2), 143–161. https://doi.org/10.55732/unu.gnk.2024.06.2.5
Freeman, R. E., & McVea, J. (1984). A Stakeholder Approach to Strategic Management. Blackwell Publishing. http://papers.ssrn.com/paper.taf?abstract_id=263511
Global Reporting Initiative. (2021). GRI Universal Standards 2021.
Gray, R. (2002). The Social Accounting Project and Accounting Organizations and Society Privileging Engagement, Imaginings, New Accountings and Pragmatism Over Critique? Accounting, Organizations and Society, 27, 687–708. www.elsevier.com/locate/aos
Hendri Nofriadi, Rahma Yulida, & Pudji Astuty. (2025). A Decade of Green Accounting in Indonesia and the UK : Implementation, Challenges, and Opportunities. International Journal of Economics and Management Research, 4(3), 341–353. https://doi.org/10.55606/ijemr.v4i3.554
Hidayati, I. (2023). Sustainability Reporting in Indonesia: A Systematic Literature Review. Jurnal GeoEkonomi, 14(2), 213–246. https://doi.org/10.36277/geoekonomi.v14i2.319
International Federation of Accountants. (2024, February). Sustainability Reporting and Assurance Practices of Largest Global Companies Continue to Mature, IFAC, AICPA & CIMA Study Shows. International Federation of Accountants.
International Federation of Reporting Standards. (2023). IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information.
International Federation of Reporting Standards. (2023). IFRS S2 Climate-related Disclosures.
Maharani, D. D., & Bayangkara, K. (2025). Peran Akuntansi Keberlanjutan dalam Mewujudkan Bisnis Berkelanjutan di Era ESG (Environmental, Social, and Governance). 5(1), 254–264. https://doi.org/10.55606/optimal.v5i1.5753
Martadinata, S. (2024). Pengaruh Pengungkapan Akuntansi Lingkungan dan Mekanisme Good Corporate Governance terhadap Kinerja Lingkungan. Jurnal Global Ilmiah, 1(4), 240–243.
Mukwarami, S., & van der Poll, H. M. (2024). Critical Environmental Management Accounting Practices Influencing Service Delivery of Growing Cities in A Developing Economy: A Review and Conceptual Framework. In Environment Systems and Decisions (Vol. 44, Number 3, pp. 710–739). Springer. https://doi.org/10.1007/s10669-023-09960-9
Murti, C. D. (2023). What Is Known About Environmental Cost Accounting? Systematic Literature Review. Journal of Accounting and Investment, 24(1), 84–100. https://doi.org/10.18196/jai.v24i1.16180
Norarita, R., Holiawati, H., & Kusumaningsih, A. (2026). Pengaruh Green Accounting dan Environmental Performance terhadap Sustainable Growth dengan Profitabilitas sebagai Variabel Moderasi. JAFM: Journal of Accounting and Finance Management, 7(1), 82–88. https://doi.org/10.38035/jafm.v7i1
Nyakuwanika, M., & Panicker, M. (2025). The Role of Environmental Accounting in Mitigating Climate Change: ESG Disclosures and Effective Reporting—A Systematic Literature Review. Journal of Risk and Financial Management, 18(9). https://doi.org/10.3390/jrfm18090480
Otoritas Jasa Keuangan. (2017). Peraturan Otoritas Jasa Keuangan Nomor 51/POJK.03/2017 tentang Penerapan Keuangan Berkelanjutan bagi Lembaga Jasa Keuangan, Emiten, dan Perusahaan Publik.
Otoritas Jasa Keuangan. (2021). Roadmap Keuangan Berkelanjutan Tahap II (2021-2025).
Schaltegger, S., & Burritt, R. (2017). Contemporary Environmental Accounting Issues, Concepts and Practice. Routledge.
Sisaye, S., & Birnberg, J. G. (2025). The Evolution of Sustainability Accounting and Reporting in the United States: Applications of the Ecological Anthropology and Industrial Ecology Frameworks. Journal of Business and Socio-Economic Development, 5(2), 104–121. https://doi.org/10.1108/JBSED-03-2023-0020
Sitorus, F. Y. (2024). The Effect of Green Accounting Practices and Carbon Emission Disclosure on Environmental Performance and Firm Value, Moderated by Firm Size. International Journal of Research in Business and Social Science (2147- 4478), 13(5), 649–662. https://doi.org/10.20525/ijrbs.v13i5.3204
Snyder, H. (2019). Literature Review as A Research Methodology: An Overview and Guidelines. Journal of Business Research, 104, 333–339. https://doi.org/10.1016/j.jbusres.2019.07.039
Suchman, M. C. (1995). Managing Legitimacy: Strategic and Institutional Approaches. Academy of Management Review, 20(3), 571–610.
Sundarasen, S., Rajagopalan, U., & Alsmady, A. A. (2024). Environmental Accounting and Sustainability: A Meta-Synthesis. Sustainability, 16(21), 1–16. https://doi.org/10.3390/su16219341
Wati, Y., Chandra, T., Irman, M., & Rahman, S. (2024). Green Accounting, Corporate Governance, Sustainable Development: The Moderating Effect of Corporate Social Responsibility. The Indonesian Journal of Accounting Research, 27(02). https://doi.org/10.33312/ijar.786
Zuherman, N. H., & Sisdianto, E. (2025). Peran Akuntansi Lingkungan dalam Mendukung Tujuan Pembangunan Berkelanjutan (SDGs): Tinjauan Literatur oleh Ersi Sisdianto. Jurnal Ilmiah Ekonomi Bisnis Dan Akuntansi, 2(1), 433–443. https://doi.org/10.61722/jemba
Downloads
Published
Issue
Section
License
Copyright (c) 2026 Mutia Tsalitsa Alawia, Wiwik Mukholafatul Farida, Shinta Laura Dewani
This work is licensed under a Creative Commons Attribution 4.0 International License.
