Abstract

Sustainability in accounting for environmental impact has emerged as a critical domain within contemporary financial reporting reflecting the growing recognition that environmental externalities must be integrated into corporate accountability frameworks. Traditional accounting systems designed primarily to capture financial performance have long struggled to address environmental degradation resource depletion greenhouse gas emissions pollution and ecological disruption—factors that significantly affect long-term business viability and societal well-being. As global awareness of climate change intensifies stakeholders increasingly demand transparency in how organizations measure monitor and disclose environmental impacts. This research critically reviews the evolution conceptual foundations methodologies institutional challenges and limitations of sustainability accounting arguing that while the field has made notable progress through frameworks such as environmental management accoun