Integrated Accounting Approaches for Addressing Environmental Costs and Promoting Corporate Sustainability

This study explores the integration of environmental accounting practices in Iraqi industrial companies and their quantitative impact on corporate sustainability and investor attraction. Data were collected from 20 companies listed on the Iraqi Stock Exchange, focusing on environmental costs and their correlation with sustainability metrics. Using quantitative methods, including regression and correlation analyses, the findings revealed a limited impact of these practices on sustainability outcomes, as evidenced by a low R-squared value of 0.016, showing that only 1.6% of the variation in sustainability metrics could be attributed to environmental accounting practices. Furthermore, correlation analysis demonstrated weak relationships between environmental accounting and investor attraction. Descriptive statistics indicated moderate variability in awareness and adoption levels, with mean scores averaging around 3.00 on a Likert scale. Challenges such as inadequate training, weak regulatory support, and limited technological resources were identified as significant barriers to effective implementation. The study concludes that while environmental accounting practices have the potential to enhance sustainability and investor confidence, their current application in Iraqi companies remains insufficient. It recommends comprehensive policy reforms, targeted training programs, and the development of a robust regulatory framework to bridge the gap between theory and practice. This approach could align Iraq’s industrial sector with global sustainability standards, enhancing transparency, market value, and environmental stewardship.