Application of Biodiversity Accounting to Financial Reporting in Modern Business
Keywords:
Biodiversity Accounting, Financial Reporting, Modern BusinessAbstract
Biodiversity accounting has emerged as an important tool for companies to manage their environmental impacts and contribute to global sustainability. This systematic literature review examines recent developments in biodiversity accounting practices, including reporting standards, measurement methodologies, and their implementation across industry sectors. The study identifies key approaches such as the use of Global Reporting Initiative (GRI) standards, Biodiversity Footprint Analysis, and Natural Capital Accounting in reporting and measuring biodiversity impacts. Key challenges include limitations in measurement methodologies, gaps in reporting, and difficulties in integrating biodiversity into business strategies. The study also analyzes the benefits of implementing biodiversity accounting for companies, including improved risk management, corporate reputation, and operational efficiency. Using a literature review research method that focuses on the analysis, synthesis, and evaluation of documents or text sources related to the research topic, the study discusses the concept and definition of biodiversity accounting and its benefits for companies. Recommendations for future developments include the need for better standards, further research in measurement methodologies, and stronger integration into business practices. Case studies and best practices demonstrate how companies can successfully manage and report their impacts on biodiversity by implementing effective strategies such as habitat restoration and conservation area management. Thus, biodiversity accounting is not only an ethical obligation but also a strategic step to ensure the long-term sustainability of business and the environment.
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