Sustainability at stake during COVID-19: Exploring the role of accounting in addressing environmental crises

Highlights

• Current responses to environmental crises are limiting to achieve long-term sustainability change.

• New understandings of social and environmental value consistent with ecological principles are needed.

• Current accounting boundaries fail to reflect the interconnectivity of ecosystems.

• Better accounting education practices are necessary to drive large-scale changes.

Abstract

In this paper, we reflect and provide insights on the environmental implications of post-COVID-19 economic recoveries. More specifically, we highlight the connection(s) between the environment and the COVID-19 crisis, in particular the intertwined links between Mother Nature and the virus. We then raise some concerns about the ‘illusionary’ positive and negative effects of the crisis on the environment before evoking some past lessons about crisis management and recovery. We contend that the current accounting and accountability mechanisms employed in economic stimulus programs, as well as traditional environmental accounting approaches, are inadequate and limiting to achieve long-term sustainability change. The paper concludes by offering accounting practitioners and researchers some possibilities to take a step forward and develop new understandings of social and environmental value consistent with ecological principles and sustainable development—and hope that these reflections will contribute to a broader debate on the role of accounting for sustainable development in the Anthropocene.