Abstract
This study examines how environmental, social, and governance (ESG) frameworks can be aligned with green accounting principles in order to incorporate natural capital valuation into sustainability reporting. Although ESG has become a dominant mechanism for non-financial disclosure, its environmental dimension remains largely centered on standardized indicators, risk exposure, and firm-level performance. This limits its ability to capture the broader value, depletion, and long-term dynamics of natural capital. In contrast, green accounting provides a stronger basis for recognizing environmental stocks, ecosystem services, and ecological degradation, yet it remains insufficiently integrated into mainstream reporting systems. Using a qualitative and conceptual research approach based on structured literature analysis, this study identifies the main points of disconnect between the two approaches and explores their potential convergence. The findings suggest that a more coherent integration of ESG and green accounting is necessary to strengthen the analytical depth, ecological relevance, and strategic value of sustainability reporting.
References
Abela, M. (2022). A new direction? The “mainstreaming” of sustainability reporting. Sustainability Accounting, Management and Policy Journal, 13(6), 1261–1283. https://doi.org/10.1108/SAMPJ-06-2021-0201
Angelaki, E., Garefalakis, A., Kourgiantakis, M., Sitzimis, I., & Passas, I. (2025). ESG integration and green computing: A 20-year bibliometric analysis. Sustainability, 17(7), 3266. https://doi.org/10.3390/su17073266
Astara, O.-E., Tsirmpinis, Z., Kopsidas, O., & Vardopoulos, I. (2026). Tourism as a catalyst for economic stability and environmental sustainability in Mediterranean landscapes. In Sustainable Landscapes across the Mediterranean (pp. 235–246). Springer. https://doi.org/10.1007/978-3-032-07255-9_25
Bais, B., Nassimbeni, G., & Orzes, G. (2024). Global Reporting Initiative: Literature review and research directions. Journal of Cleaner Production, 471, 143428. https://doi.org/10.1016/j.jclepro.2024.143428
Bin-Nashwan, S. A. (2026). Sustainability-driven intellectual capital model in carbon disclosure: Insights from PLS-SEM. Cleaner Production Letters, 10, 100132. https://doi.org/10.1016/j.clpl.2026.100132
Cardillo, M. A. dos R., & Basso, L. F. C. (2025). Revisiting knowledge on ESG/CSR and financial performance: A bibliometric and systematic review of moderating variables. Journal of Innovation and Knowledge, 10(1), 100648. https://doi.org/10.1016/j.jik.2024.100648
Chen, X., Huang, R., Zhang, X., Zhang, Y., Yu, Y., Otaki, T., & Shaw, R. (2025). Synergies and gaps in ESG, climate disasters, and social inequality: A literature review. Climate, 13(12), 241. https://doi.org/10.3390/cli13120241
Cornell, B. (2020). ESG investing: Conceptual issues. Journal of Wealth Management, 23(3), 61–69. https://doi.org/10.3905/JWM.2020.1.117
Costea, I. D., & Hategan, C. D. (2025). Evolution of sustainability reporting frameworks. Audit Financiar, 23(179), 555–575. https://doi.org/10.20869/AUDITF/2025/179/016
D’Agata, A., Cudlin, P., Vardopoulos, I., Schinaia, G., Corona, P., & Salvati, L. (2024). Assessing the spatial coherence of forest cover indicators from different data sources: A contribution to sustainable development reporting. Ecological Indicators, 158, 111498. https://doi.org/10.1016/j.ecolind.2023.111498
D’Agata, A., Ponza, D., Stroiu, F. A., Vardopoulos, I., Rontos, K., Escrivà, F., Chelli, F., Alaimo, L. S., Salvati, L., & Nickayin, S. S. (2023). Toward sustainable development trajectories? Estimating urban footprints from high-resolution Copernicus layers in Athens, Greece. Land, 12(8), 1490. https://doi.org/10.3390/land12081490
da Cunha, Í. G. F., Policarpo, R. V. S., de Oliveira, P. C. S., Abdala, E. C., & do Nascimento Rebelatto, D. A. (2025). A systematic review of ESG indicators and corporate performance: Proposal for a conceptual framework. Future Business Journal, 11(1), 66. https://doi.org/10.1186/s43093-025-00539-1
Doukas, Y. E., Maravegias, N., Ioannides, S., Salvati, L., & Vardopoulos, I. (2025). Economic resilience and sustainability in the European Union: A comparative analysis of pre- and post-economic crisis. In L. Salvati (Ed.), Environmental Sustainability and Global Change (pp. 257–273). Elsevier. https://doi.org/10.1016/B978-0-443-31596-1.00018-0
Doukas, Y. E., Maravegias, N., Zorpas, A. A., Sotiropoulos, A., & Vardopoulos, I. (2026). Integrating circular economy principles in the European farm-to-fork strategy for food waste prevention. Journal of Agribusiness in Developing and Emerging Economies, 1–24. https://doi.org/10.1108/JADEE-10-2025-0512
Doukas, Y. E., Salvati, L., & Vardopoulos, I. (2023). Unraveling the European agricultural policy sustainable development trajectory. Land, 12(9), 1749. https://doi.org/10.3390/land12091749
Eccles, R. G., Lee, L.-E., & Stroehle, J. C. (2020). The social origins of ESG: An analysis of Innovest and KLD. Organization & Environment, 33(4), 575–596. https://doi.org/10.1177/1086026619888994
Farag, M. I. H. (2025). Sustainability as a management strategy: Integrating environmental, social, and governance practices into business administration. Management Science Advances, 3(1), 20–44. https://doi.org/10.31181/msa31202630
Farisyi, S., Al Musadieq, M., Utami, H. N., & Damayanti, C. R. (2022). A systematic literature review: Determinants of sustainability reporting in developing countries. Sustainability, 14(16), 10222. https://doi.org/10.3390/su141610222
Fornasari, T., & Traversi, M. (2024). The impact of the CSRD and the ESRS on non-financial disclosure. Symphonya. Emerging Issues in Management, 1, 117–133. https://doi.org/10.4468/2024.1.07fornasari.traversi
Free, C., Jones, S., & Tremblay, M. S. (2025). Greenwashing and sustainability assurance: A review and call for future research. Journal of Accounting Literature, 47(4), 739–764. https://doi.org/10.1108/JAL-11-2023-0201
Garefalakis, A., & Dimitras, A. (2020). Looking back and forging ahead: The weighting of ESG factors. Annals of Operations Research, 294(1–2), 151–189. https://doi.org/10.1007/s10479-020-03745-y
Garefalakis, A., Sitzimis, I., Angelaki, E., Giannopoulos, P., & Kyriakogkonas, P. (2025). Audit quality indicators across jurisdictions: Regulatory diversity, ESG integration, and implications for public trust. Sustainability, 17(21), 9421. https://doi.org/10.3390/su17219421
Garefalakis, S., Angelaki, E., Spinthiropoulos, K., Tsamis, G., & Garefalakis, A. (2025). The implementation of ESG indicators in the balanced scorecard: Case study of LGOs. Risks, 13(8), 154. https://doi.org/10.3390/risks13080154
Heim, I., Laker, B., & Tabaeifard, S. J. (2026). Responsible leadership: A systematic literature review, theoretical framework, and future research directions. Journal of Business Research, 203, 115801. https://doi.org/10.1016/j.jbusres.2025.115801
Hernandez Aros, L., Buitrago Mejia, A., Binns Hernández, H. A., & Gutierrez Portela, F. (2025). Sustainability reporting in the construction sector: Trends, models, metrics and challenges towards achieving the SDGs. Research in Globalization, 11, 100300. https://doi.org/10.1016/j.resglo.2025.100300
Huiping, G., Teck, T. S., & Nellikunnel, S. (2024). Navigating the complexities of ESG integration: Challenges, opportunities and path to sustainable corporate development. Journal of Business and Social Sciences, 2024(27), 1–8. https://doi.org/10.61453/jobss.v2024no27
Imbrenda, V., Ciaschini, C., Salvia, R., Quaranta, G., & Salvati, L. (2025). Traditional landscapes in Mediterranean areas: Environmental protection vs economic growth. In C. Ciaschini & V. Imbrenda (Eds.), Local Development and Socio-Environmental Systems: Experiences and Practices toward Sustainability in Mediterranean Europe (pp. 19–38). River Publishers. https://doi.org/10.1201/9788770047616-2
Jauernig, J., & Valentinov, V. (2019). CSR as hypocrisy avoidance: A conceptual framework. Sustainability Accounting, Management and Policy Journal, 10(1), 2–25. https://doi.org/10.1108/SAMPJ-05-2018-0141
Kavouras, S., Vardopoulos, I., Mitoula, R., Zorpas, A. A., & Kaldis, P. (2022). Occupational health and safety scope significance in achieving sustainability. Sustainability, 14(4), 2424. https://doi.org/10.3390/su14042424
Kempton, Y., Salvati, L., & Vardopoulos, I. (2022). Long-term planning and development for urban and regional inclusion, safety, resilience, and sustainability: Insights from Singapore. Region & Periphery, 14(10), 58–78. https://doi.org/10.12681/rp.32607
Kopsidas, O., Panagiotopoulos, P., Passas, I., Doukas, Y. E., Salvati, L., & Vardopoulos, I. (2026). Integrating externalities into economic systems for long-term environmental sustainability. In L. Salvati (Ed.), Spatial Analysis for Complex Territorial Systems (pp. 201–213). Elsevier. https://doi.org/10.1016/B978-0-443-44133-2.00018-1
Krasteva-Hristova, R., Papradanova, D., & Vechev, V. (2025). Mapping the landscape of sustainability reporting: A bibliometric analysis across ESG, circular economy, and integrated reporting with sectoral perspectives. Journal of Risk and Financial Management, 18(8), 416. https://doi.org/10.3390/jrfm18080416
Lemonakis, C., Ballas, P., Balla, V., & Garefalakis, A. (2018). Audit fees and pricing strategy: Do restatements of internal control reports and earnings matter? Risk Governance and Control: Financial Markets and Institutions, 8(2), 63–73. https://doi.org/10.22495/rgcv8i2p4
Lemonakis, C., Garefalakis, A., Giannarakis, G., & Adamou, A. (2016). Exporting activity using manufacturing firms’ financial data: The case of clothing and footwear (CFW) sector. European Journal of Economics, Finance and Administrative Sciences, 91, 5–12. https://ssrn.com/abstract=4006317
Li, T. T., Wang, K., Sueyoshi, T., & Wang, D. D. (2021). ESG: Research progress and future prospects. Sustainability, 13(21), 11663. https://doi.org/10.3390/su132111663
Loizia, P., Voukkali, I., Zorpas, A. A., Navarro Pedreño, J., Chatziparaskeva, G., Inglezakis, V. J., Vardopoulos, I., & Doula, M. (2021). Measuring the level of environmental performance in insular areas, through key performed indicators, in the framework of waste strategy development. Science of the Total Environment, 753, 141974. https://doi.org/10.1016/j.scitotenv.2020.141974
Lokuwaduge, C. S. D. S., & De Silva, K. M. (2022). ESG risk disclosure and the risk of green washing. Australasian Accounting, Business and Finance Journal, 16(1), 146–159. https://doi.org/10.14453/aabfj.v16i1.10
Maialetti, M., Halbac-Cotoara-Zamfir, R., Vardopoulos, I., & Salvati, L. (2024). Early desertification risk in advanced economies: Summarizing past, present and future trends in Italy. Earth, 5(4), 690–706. https://doi.org/10.3390/earth5040036
Maneekul, C. (2024). Trends in green accounting in the modern world: A literature review on its implementation and challenges. Count: Journal of Accounting, Business and Management, 2(2), 113–123. https://doi.org/10.61677/count.v2i2.565
Pace, L., Galella, M., Ciaschini, C., Sateriano, A., Cudlin, P., Vardopoulos, I., Rontos, K., & Salvati, L. (2025). Environmental-economic dimensions of land-use transformations: Exploring the Mediterranean rural sustainable development. In L. Salvati (Ed.), Environmental Sustainability and Global Change (pp. 81–93). Elsevier. https://doi.org/10.1016/B978-0-443-31596-1.00007-6
Panagiotopoulos, P., Vardopoulos, I., Maialetti, M., Ciaschini, C., Koundouri, P., & Salvati, L. (2024). Reimagining sustainable development and economic performance indicators: A human-centric Maslow-Bossel blueprint. Economies, 12(12), 338. https://doi.org/10.3390/economies12120338
Papafloratos, T., Tsafou, E., & Tolia, C. (2025). Evaluating CSR reporting credibility: Evidence from Athex ESG index companies. European Research Studies Journal, 28(2), 174–188.
Papamichael, I., Voukkali, I., Loizia, P., Stylianou, M., Economou, F., Vardopoulos, I., Klontza, E. E., Lekkas, D. F., & Zorpas, A. A. (2023). Measuring circularity: Tools for monitoring a smooth transition to circular economy. Sustainable Chemistry and Pharmacy, 36, 101330. https://doi.org/10.1016/j.scp.2023.101330
Parra-Domínguez, J., Dote-Pardo, J., Severino-González, P., Rebolledo-Aburto, G., & Romero-Argueta, J. (2026). Corporate social responsibility and financial performance in emerging markets: A systematic review to enhance decision-making frameworks. Social Sciences & Humanities Open, 13, 102512. https://doi.org/10.1016/j.ssaho.2026.102512
Passas, I. (2024). The evolution of ESG: From CSR to ESG 2.0. Encyclopedia, 4(4), 1711-1720. https://doi.org/10.3390/encyclopedia4040112
Passas, I., & Garefalakis, A. (2025). The impact of fraud perception and ESG-washing on investment trust: Integrating corporate governance theory and empirical evidence. Accounting and Auditing, 1(3), 9. https://doi.org/10.3390/accountaudit1030009
Petelos, E., Antonaki, D., Angelaki, E., Lemonakis, C., & Alexandros, G. (2025). Enhancing public health and SDG 3 through sustainable agriculture and tourism. Sustainability, 17(14), 6253. https://doi.org/10.3390/su17146253
Risso, M., & Longarini, F. (2023). Exploring a shared benchmark for measuring ESG performance. Symphonya. Emerging Issues in Management, 1, 108–133. https://doi.org/10.4468/2023.01.07risso.longarini
Rossi, M., Capasso, A., Solak, I., Jarrar, H., & Salloum, C. (2025). Green scores, golden returns: ESG’s role in shaping SME financial outcomes. Review of Accounting and Finance, 24(5), 619–639. https://doi.org/10.1108/RAF-10-2024-0468
Salvati, L., Ciaschini, C., Postigliola, M., Ermini, B., & Vardopoulos, I. (2025). Contextual differences, contrasting trends? Sustainable development, economic performances, and divergence in land resource depletion. In L. Salvati (Ed.), Environmental Sustainability and Global Change (pp. 107–114). Elsevier. https://doi.org/10.1016/B978-0-443-31596-1.00009-X
Salvati, L., Maravegias, N., Doukas, Y. E., & Vardopoulos, I. (2026). Land degradation dynamics and sustainability in advanced Mediterranean economies. In Sustainable Landscapes across the Mediterranean (pp. 343–350). Springer. https://doi.org/10.1007/978-3-032-07255-9_36
Shahzad, M., Qu, Y., Rehman, S. U., & Zafar, A. U. (2022). Adoption of green innovation technology to accelerate sustainable development among manufacturing industry. Journal of Innovation and Knowledge, 7(4), 100231. https://doi.org/10.1016/j.jik.2022.100231
Shih, P. Y., Hsu, A. C., Chen, C. C., Shih, D. H., & Shih, M. H. (2026). Win-win or laissez-faire? Benchmarking sovereign ESG efficiency in OECD countries using two-stage DEA. Mathematics, 14(6), 1042. https://doi.org/10.3390/math14061042
Sneideriene, A., & Legenzova, R. (2026). A framework for mitigating greenwashing in sustainability reporting. Sustainability, 18(1), 524. https://doi.org/10.3390/su18010524
Stocker, F., de Arruda, M. P., de Mascena, K. M. C., & Boaventura, J. M. G. (2020). Stakeholder engagement in sustainability reporting: A classification model. Corporate Social Responsibility and Environmental Management, 27(5), 2071–2080. https://doi.org/10.1002/csr.1947
Sun, Y., & Chen, Z. (2025). Do institutional investors’ ESG commitments affect ESG rating disagreement? An empirical analysis of UNPRI signatory commitment. Sustainability, 17(24), 11083. https://doi.org/10.3390/su172411083
Tang, K. H. D. (2023). A review of environmental, social and governance (ESG) regulatory frameworks: Their implications on Malaysia. Tropical Aquatic and Soil Pollution, 3(2), 168–183. https://doi.org/10.53623/tasp.v3i2.282
Tumewang, Y. K., Alharasis, E. E., & Toumi, K. (2025). Does ESG reporting truly align with carbon performance? New evidence from the dual banking sector in emerging markets. Sustainability Accounting, Management and Policy Journal, 17(4), 1054–1091. https://doi.org/10.1108/SAMPJ-07-2024-0737
Uru, F. O., Pekşen, G. K., & Gozukara, E. (2026). Challenges and solutions in green innovation practices: A case study of a manufacturing firm in Turkey. Sustainability, 18(4), 2043. https://doi.org/10.3390/su18042043
Vardopoulos, I. (2025). Cities in flux: Waste, the shadow of circularity, and the (elusive) promise of sustainability. Sustainability, 17(2), 705. https://doi.org/10.3390/su17020705
Vardopoulos, I., & Passas, I. (Eds.). (2025). Futureproofed sustainability amidst climate change polycrisis: Advancing SDGs and ESG for the cities of tomorrow. IGI Global Scientific Publishing. https://doi.org/10.4018/979-8-3373-2327-5
Vardopoulos, I., Abeliotis, K., & Lasaridi, K. (2025). A systematic informetric analysis and literature review of food waste quantification studies in the food service industry. Sustainability, 17(1), 103. https://doi.org/10.3390/su17010103
Vardopoulos, I., Egidi, G., & Salvati, L. (2026). Socioenvironmental resilience and applied economics: From theory to indicators. In L. Salvati (Ed.), Spatial Analysis for Complex Territorial Systems (pp. 189–200). Elsevier. https://doi.org/10.1016/B978-0-443-44133-2.00008-9
Vardopoulos, I., Koundouri, P., Zorpas, A. A., & Vassiliades, C. (2025). Sustainability in the built environment: Green buildings’ role in real estate. In Energy-efficient Buildings in the Mediterranean: Challenges, Strategies, and Innovations (pp. 31–72). River Publishers. https://doi.org/10.1201/9788743809784-2
Vardopoulos, I., Santamouris, M., Zorpas, A. A., Barone, G., Italos, C., & Vassiliades, C. (2024). A comparative study on discrepancies in residential building energy performance certification in a Mediterranean context. Buildings, 14(4), 1009. https://doi.org/10.3390/buildings14041009
Vassiliades, C., Vardopoulos, I., Barone, G., Santamouris, M., & Kalogirou, S. (2025). Exposing the limits in the residential building energy performance certification model. Energy Reports, 14, 1008–1019. https://doi.org/10.1016/j.egyr.2025.07.011
Vortelinos, D. I., & Papaioannou, A. (2025). External audit quality: A comprehensive literature review of determinants, indicators, and implications. Sustainability Research in the Mediterranean, 1(1), 31–44. https://doi.org/10.13052/srm2795-0514.003
Vortelinos, D. I., Yiannoulis, Y., & Bourantas, N. S. (2026). Sustainability and environmental governance in listed companies: Comparative insights into climate and resource management. Sustainability Research in the Mediterranean, 1(1), 17–30. https://doi.org/10.13052/srm2795-0514.002
Wagenhofer, A. (2024). Sustainability reporting: A financial reporting perspective. Accounting in Europe, 21(1), 1–13. https://doi.org/10.1080/17449480.2023.2218398
White, C. J., Adnan, M. S. G., Arosio, M., Buller, S., Cha, Y., Ciurean, R., Crummy, J. M., Duncan, M., Gill, J., Kennedy, C., Nobile, E., Smale, L., & Ward, P. J. (2025). Review article: Towards multi-hazard and multi-risk indicators. A review and recommendations for development and implementation. Natural Hazards and Earth System Sciences, 25(11), 4263–4281. https://doi.org/10.5194/nhess-25-4263-2025
Yang, F., & Li, X. (2023). Corporate financialization, ESG performance and sustainability development: Evidence from Chinese-listed companies. Sustainability, 15(4), 2978. https://doi.org/10.3390/su15042978
Zorpas, A. A., Economou, F., Naddeo, V., Stylianou, M., Voukkali, I., Vardopoulos, I., Tsiarta, N., Samanides, C. G., Zarra, T., Wern, B., Vyzikas, T., Inglezakis, V. J., & Samaras, P. (2026). The darkest shade of green transition. Energy Reports, 15, 109099. https://doi.org/10.1016/j.egyr.2026.109099