Unveiling the Hidden Dimensions of Sustainability Accounting Behind Green Economic Transformation

Abstract

Sustainability accounting has emerged as a critical tool in driving the global transition towards a green economy. By integrating environmental, social, and governance (ESG) metrics into financial reporting, sustainability accounting seeks to uncover hidden dimensions that influence the alignment of economic activities with sustainable development goals. This study aims to explore the role of sustainability accounting in enabling green economic transformation, focusing on its application in assessing corporate environmental impact, resource efficiency, and stakeholder engagement. Employing a qualitative methodology, the research combines a literature review with case studies of industries at the forefront of sustainable practices. The findings reveal that sustainability accounting not only enhances transparency and accountability but also serves as a strategic decision-making framework for organizations transitioning to low-carbon operations. Furthermore, the research identifies critical challenges, such as the standardization of sustainability metrics, integration of ESG factors into financial systems, and the need for capacity-building among practitioners. Despite these barriers, the study underscores the potential of sustainability accounting to drive systemic change by fostering innovation, encouraging green investments, and promoting equitable resource allocation. This study contributes to the evolving discourse on sustainability by providing a comprehensive analysis of how accounting practices can address the complexities of environmental and social challenges. The findings highlight the necessity for collaboration between policymakers, businesses, and academia to develop robust sustainability accounting frameworks that support long-term economic and ecological resilience.