Green finance: how might accounting and financial reporting change?

Abstract

Green finance and the various concepts and implications that arise from it are increasingly raising questions about the impacts on an organization's accounting and financial information as well as performance indicators. This work is intended to be theoretical, aiming to analyze the foundations of this notion and to discuss the direct impacts to be taken into consideration in accounting. The method adopted in this article is rather conceptual aimed at analyzing the extent to which the adoption of this new form could have changes in conventional accounting rules. In the absence of standardization and a reference framework setting out the principles for integrating this notion, subjectivity and the judgment of operators remain the key words. In addition, in view of international pressures on environmental issues, one might expect to have special accounting and financial situations to reflect the green efforts of financial actors. This last reflection could be analysed in more in-depth discussions in order to draw up the framework for such financial statement.

Keywords: Green finance, green bonds, financial information

JEL Classification: M41

Paper type: Theoretical Research