Accounting for Climate Change: Literature Review on Climate Disclosure and Environmental Risk Reporting
Keywords:
Climate change, Climate change accounting, disclosure, environmental risk reportingAbstract
Global climate change has become a major challenge affecting various sectors of life, including business and finance. Accounting plays a vital role in managing environmental risks and greenhouse gas (GHG) outflows , as well as their effect on corporate monetary articulation. By adopting carbon accounting and environmental accounting, companies can identify, measure, and report the environmental impacts of their activities, which in turn support climate change mitigation policies. Challenges in environmental reporting, such as varying standards across countries, hamper transparency and accountability. This article also highlights the importance of developing harmonized reporting standards to enhance public and investor confidence. Through literature analysis, this study provides insights into how companies can integrate sustainability practices into their business strategies, as well as the policy implications needed to support effective climate risk management. These findings are expected to be a reference for academics, practitioners, and policy makers in their efforts to achieve better sustainability and climate change mitigation.
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