Accounting and The Environment: Literature Review

Objectives: This article seeks to analyze the interaction between accounting and the environment, investigating how companies can integrate environmental costs and impacts into their accounting practices. Its main objective is to discuss strategies that reconcile environmental sustainability with legal requirements and consumer demands for greater socio-environmental responsibility. Theoretical Framework: The study is based on the concept of environmental accounting as a branch of socially responsible accounting. Theoretical elements such as the UN Economic-Environmental Accounting System (SEEA) are covered, as well as research on sustainability reports and corporate practices aimed at meeting growing environmental pressures. The literature also explores the historical evolution of the environmental movement and its influence on strategic business management. Method: The research adopts a qualitative and descriptive approach, based on a comprehensive bibliographic review that includes academic publications, books, scientific articles and other relevant sources. It is characterized as an exploratory study, with the purpose of interpreting complex phenomena and assigning meanings to them in the investigated context. Results and discussion: Results: The study shows that the lack of coding and standardization in environmental accounting makes objective comparison between companies difficult and undermines transparency in recording environmental damage. Furthermore, it highlights that organizations that adopt sustainable practices enjoy competitive advantages, such as improved reputation, reduced costs with fines and access to tax incentives. Discussion: The importance of including environmental costs (preventive, corrective and reparative) in the financial statements is highlighted, in order to accurately portray operating margins. Initiatives such as ecological audits and obtaining environmental seals are cited as effective tools for aligning business operations with sustainability principles. Research Implications: The work promotes awareness of the relevance of integrating sustainable accounting into business practices, offering theoretical foundations and applicable examples that can support managers and accountants. Additionally, it emphasizes the need to strengthen public policies and greater standardization of accounting standards aimed at sustainability. Originality and Value: The article's unprecedented contribution lies in the synthesis of the relationship between accounting and environmental sustainability, highlighting the role of accounting as a strategic instrument to promote sustainable corporate practices. The research adds value by offering useful insights for academics, managers and policymakers interested in promoting socio-environmental responsibility.