Iormbagah, J.A*., Onodi, B.E., Okezie, S. &
Nwaorgu, I.A
Department of Accounting, College of
Management sciences,
Michael Okpara University of Agriculture
Umudike. Umuahia, Abia State.
This study seeks to examine the environmental
impacts of firms’ economic activities and the
need to adopt a global standard for green
accounting reporting by firms in Nigeria.
Anchored on the Stakeholders theory the
study adopts survey research design and
content analysis of pictorial evidence &
sustainability reports of the firms as the
mediating evidence between the responses
gotten and validation of sustainability reports
of the firms on the environmental impacts of
the firms’ economic activities and the need for
adopting green accounting methods in Nigeria.
Using the GRI standard with a sample of 30
responses drawn from returned questionnaire;
content analysis of the firms’ sustainability
reports and survey responses were analyzed
using frequency and percentages to explain
people’s perception towards green accounting
and the level of the firms’ sustainability
disclosure concerning green accounting
methods used by the firms to achieve
sustainability. From the study findings it is
noted that firms in Nigeria especially, the oil
and gas firms have been doing little or nothing
to foster green accounting practices that will
yield but environmental and firms’
sustainability. Poor implementation of green
accounting methods as a result of firms’
economic interest of cost minimization has led
to environmental issues that have greatly
thrown the image of the firms to the mud in
Accounting and Finance Research Association
the eyes of stakeholders like the host
community and government who are key
players to the existence and sustainability of
the firms. Thus, it is recommended that
government must introduce and adequately
implement laws that guide the adoption of
green accounting practices by firms such that
the environmental impacts of firms’ economic
activities will be checked and minimized. This
can be done through imposition of high taxes
on flaring that is above alternative flaring cost
such that firms will be persuaded to resort to
production techniques other than gas flaring
that encourages environmental conservatism
and firm sustainability. On the other, to avert
such high tax impositions firms should
consider the need to employ the services of
accountants that are cost evaluation experts
and versatile in green accounting to
determine the best cost approach that will be
environmental friendly. This approach best
protects the interest of all the firms’
stakeholders as explained by Freeman in his
(1984) stakeholders’ theory of the firm.
Lastly, firms are encouraged to adopt the GRI
standards as a way of reporting their
performance in order to inform all
stakeholders on the giant strides they have
taken towards enhancing the practice of
green accounting methods and sustainability.
Keywords: Green accounting, GRI standards
and sustainability report.

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