Green Accounting and Environmental Investment as Determinants of Governance Quality and Long-Term Profitability

Abstract

Green accounting is a modern accounting approach that aims to internalize environmental impacts into a company’s financial reporting system. Through this approach, financial statements not only reflect economic performance but also demonstrate the organization’s contribution to environmental preservation in a more comprehensive manner. This study examines the relationship between green accounting, environmental investment, corporate financial governance, and budgeting systems in promoting profitability and long-term business sustainability. The method employed is a Systematic Literature Review, conducted by analyzing relevant scientific articles published within the last five years. The findings indicate that the implementation of green accounting enhances resource-use efficiency, strengthens reporting transparency, and improves environmental accountability. Furthermore, strong financial governance plays a crucial role in ensuring the effective adoption of green accounting practices, while environmental investment provides long-term added value that supports corporate profitability. The integration of environmentally oriented budgeting further reinforces the position of green accounting as a strategic instrument for achieving both economic and ecological sustainability.