Environmental Accounting Practices and Corporate Sustainability Performance Measurement

Abstract

This research introduces a novel methodological framework that integrates environmental accounting practices with corporate sustainability performance measurement
through a bio-inspired computational approach. Traditional sustainability metrics
have largely relied on standardized reporting frameworks that often fail to capture
the complex, dynamic interactions between environmental expenditures and long-term
corporate sustainability outcomes. Our study addresses this gap by developing a hybrid methodology that combines ecological network analysis with machine learning
techniques to model corporate environmental systems as adaptive biological ecosystems. We propose that environmental accounting data—traditionally treated as discrete financial entries—can be reconceptualized as flows within a corporate metabolic
network, enabling the identification of critical leverage points for sustainability enhancement. The methodology employs a modified ant colony optimization algorithm
to trace resource flows through corporate environmental systems, identifying patterns
of efficiency and waste that conventional accounting methods overlook. We apply this
framework to a longitudinal dataset spanning 150 multinational corporations across five
industries over a ten-year period. Our results demonstrate that companies exhibiting
higher network resilience and metabolic efficiency in their environmental accounting
flows achieve significantly better sustainability performance across multiple dimensions, including reduced carbon intensity, improved resource circularity, and enhanced
stakeholder trust. The findings reveal three distinct corporate environmental metabolic
archetypes—linear, transitional, and circular—each with characteristic accounting flow
patterns and sustainability outcomes. This research contributes to both accounting
and sustainability literature by providing a dynamic, systems-based approach to environmental performance measurement that transcends traditional compliance-focused
metrics and offers actionable insights for strategic environmental management. The
proposed framework enables organizations to move beyond static sustainability reporting toward adaptive environmental governance informed by real-time accounting data
flows