What is World Economic Forum

Conventional accounting practices are not sufficient to provide the necessary information demanded by the stakeholders. By environmental accounting and reporting, valuable information regarding the effects of activities of companies on the environment are identified and disclosed. Environmental accounting and reporting have numerous advantages, such as providing a basis for more efficient decision-making processes, optimization of company value, improved corporate image, and increased customer loyalty and investor trust. On the other hand, this chapter mainly focuses on the challenges and threats to environmental accounting and reporting and discusses the possible solutions to the problems identified and recommendations provided by prior literature.