RT info:eu-repo/semantics/bookPart
T1 Financial accounting and the natural environment: the case of climate change
A1 Carrión Moneo, Elena
A1 Larrinaga González, Carlos
A1 Mateo Márquez, Antonio Jesús
K1 Climate change
K1 Externalities
K1 Financial accounting
K1 Full cost accounting
K1 Inside-out impacts
K1 Outside-in impacts
K1 Sustainability reporting
K1 Gestión de empresas-Aspectos ambientales
K1 Industrial management-Environmental aspects
K1 Contabilidad ambiental
AB Companies’ financial statements reflect climate change when environmental costs are internalized. However, financial accounting does not capture externalities (i.e., the unintended environmental costs that companies produce with their activity). This chapter explores the financial implications of climate change to understand the extent to which accounting numbers provide the appropriate information about required substantive ecological transitions. We draw on full cost accounting (FCA) to illustrate the bi-directional impacts of climate change. Outside-in impacts hold strong financial implications, which are materialized in financial statements by using accounting systems, such as carbon pricing mechanisms or sustainability reporting standards. In contrast, inside-out impacts have weak financial implications. Examples include voluntary initiatives and environmental standards, which are accounted in the corporate strategy although not captured in the financial statements. We conclude that FCA is an accounting tool that can provide a broader perception of the impacts that companies produce on the environment.
PB Edward Elgar Publishing
SN 978 1 80392 059 7
YR 2024
FD 2024-01
LK https://hdl.handle.net/10259/11119
UL https://hdl.handle.net/10259/11119
LA eng
DS Repositorio Institucional de la Universidad de Burgos
RD 27-abr-2026