Submit your papersSubmit Now
For Enquiries: [email protected]
IIARD LogoIIARD

An Integrated Reporting Approach to Blue Accounting

Kingsley K Nwachukwu a, Jane OM Ande b, PhD Mary A Ogenyi, C, PhD

Abstract

There is increasing global interest in ocean ecosystem health and how to harness the untapped potential of the blue economy. Additionally, nature-related financial risks can materialise from the environmental impact of firms within the blue economy. These risks can materially affect the cash flows and economic performance of blue economy firms. Yet, there is a lack of empirical studies in accounting literature on Blue Accounting Disclosures, which involve reporting ocean- related sustainability practices in financial statements. This paper aims to develop a conceptual framework for Blue Accounting Disclosure that incorporates both financial and impact materiality, addressing the need for ocean-specific reporting guidance within existing sustainability frameworks. Adopting a qualitative research design, the study employs a systematic literature review, theoretical analysis, and conceptual modeling to create an integrated reporting disclosure model. The findings present an Integrated Blue Accounting Disclosure Model with four interconnected components: Materiality Assessment and Scoping, Impact Identification and Measurement, Risk and Opportunity Analysis, and Disclosure and Reporting Integration. The model provides a preliminary structured approach for incorporating marine ecosystem considerations into corporate reporting. The study contributes theoretically by extending materiality and stakeholder theories into the marine sustainability domain. It also advocates a shift from traditional financial reporting to forward-looking disclosures that align with the complexities of marine ecosystem stewardship and global sustainability goals.

Keywords

Blue AccountingBlue Accounting DisclosureIntegrated ReportingBlue Economy

References

Abreu, R., David, F., Segura, L, Formigoni (2019). Blue accounting: Looking for a new standard. Responsible Governance, 3(1), 27–43. African Union. (2022). Information notes on blue accounting in the context of the African union blue economy strategy. Retrieved from African Union – Inter-African Bureau for Animal Resources. Colgan, C. S. (2016). Measurement of the ocean economy from national income accounts to the sustainable blue economy. Journal of Ocean and Coastal Economics, 2(2), 12. DiMaggio, P. J., & Powell, W. W. (1983). The iron cage revisited: Institutional isomorphism and collective rationality in organizational fields. American sociological review, 48(2), 147- Deegan, C. (2002). The legitimizing effect of social and environmental disclosures. A theoretical foundation. Accounting, Auditing and Accountability Journal, 15(3), 282–311. Dowling, J., & Pfeffer, J. (1975). Organizational legitimacy: Social values and organizational behavior. Pacific Sociological Review, 18(1), 122-136. Eccles, R. G., & Krzus, M. P. (2010). One Report: Integrated Reporting for a Sustainable Strategy. John Wiley & Sons. European Commission (2008). European Commission Regulation (EC) No 1126/2008 of 3 November 2008 certain international accounting standards by regulation (EC) No 1606/2002 of the European Parliament and the council. Retrieved from https://www.eea.europa.eu/policy-documents/2001-453-ec-european-commission European Commission. (2001a). Recommendation 2001/453/EC, on the recognition, measurement and disclosure of environmental issues in the annual accounts and annual reports of companies’ final communication from the commission to the European parliament, the council, the European economic and social committee, and the committee of the regions. Retrieved from https://www.eea.europa.eu/policy-documents/2001-453-ec-european- commission European Commission. (2001b). Green paper—promoting a European framework for corporate social responsibility, COM (2001) 366 final. Retrieved from https://www.eea.europa.eu/policy-documents/2001-453-ec-european-commission European Commission. (2012a). Blue Growth. opportunities for marine and maritime sustainable growth. COM (2012) 494 final, communication from the commission to the European parliament, the council, the European economic and social committee, and the committee of the regions. Retrieved from https://www.eea.europa.eu/policy-documents/2001-453-ec- european-commission European Commission. (2012b). Marine knowledge 2020—from seabed mapping to ocean forecasting growth. COM (2012) 493 final, communication from the commission to European Parliament the European economic and social committee, and the committee of the region. Retrieved from https://www.eea.europa.eu/policy-documents/2001-453-ec- european-commission European Union Marine Strategy Framework Directive (2008). European commission marine strategy framework directive. Retrieved from https://environment.ec.europa.eu/topics/marine-environment_en. Failler, P., Liu, J., Lallemand, P., & March, A. (2023). Blue accounting approaches in the emerging African blue economy context. Journal of Sustainability Research, 5(1), 341-367. Freeman, R. E. (2010). Strategic Management: A Stakeholder Approach. Cambridge University Press. Fuad, W. K., & Setyawan, H. (2020). Blue accounting of the marine knowledge and sustainable seas: A conceptual model. In Conference on Complex, Intelligent, and Software Intensive Systems, 954-958. Springer, Cham. GRI. (2021). Consolidated Revised Universal Reporting Standards. Retrieved from: http://www.global reporting.org.resources/library Intergovernmental Oceanographic Commission (2024). State of the Ocean Report 2024: Up-to- date knowledge for ocean action. Retrieved from the State of the Ocean Report 2024/Intergovernmental Oceanographic Commission International Sustainability Standards Board (2023) ISSB IFRS S1 General Requirements for Disclosure of Sustainability-Related Financial Information. Retrieved from https://www.ifrs.org. Kunming-Montreal Global Biodiversity Framework (2022). Kunming-Montreal Global Biodiversity Framework. Retrieved from https://www.cbd.int/gbf. Kyoto Protocol (2012). United Nations Framework Convention on Climate Change. Retrieved from https://unfccc.int/resource/docs/convkp/kpeng.pdf. Moher, D., Shamseer, L., Clarke, M., Ghersi, D., Liberati, A., Petticrew, M., ... & Prisma-P Group. (2015). Preferred reporting items for systematic review and meta-analysis protocols (PRISMA-P) 2015 statement. Systematic reviews, 4, 1-9. Mata, T., Pearsall, D., Simowski, S., & Wetland, C. (2017). Blue Accounting, Coast. Wetl. Inf. Deliv. Decis. Canada: Support. Mitchell, R. K., Agle, B. R., & Wood, D. J. (1997). Toward a theory of stakeholder identification and salience: Defining the principle of who and what counts. Academy of Management Review, 22(4), 853-886. Nwachukwu, K. K, Ande, J. O. M., Ogenyi, M. (2024). Insights into blue accounting disclosures: Accounting discipline paradigm. Syah, S., Syah, S. R., Khairin, F. N., & Kesuma, D. (2023). Blue Accounting Dan Resolusi Penanganan Limbah Plastik. Jurnal Ilmiah Akuntansi dan Keuangan (JIAKu), 2(1), 63-79. Task Force on Nature-Related Financial Disclosures (2023) Task Force on Nature-Related Financial Disclosures. Retrieved from https://tfnd.global United Nations Convention of the Law of the Seas (1982). United Nations Convention of the Law of the Seas. Retrieved from: www.UnitedNationsConventionOnTheLawOfTheSea.aspx United Nations First Global Integrated Marine Assessment (2016). The First Global Integrated Marine Assessment: World Ocean Assessment I. Retrieved from: https://www.unep.org/resources/report/ United Nations Ocean Decade (2025). United Nations Decade of Ocean Science for Sustainable Development. Retrieved from: https://en.unesco.org/ocean-decade. United Nations Sustainable Development Goals (2015). United Nation Development Program. Sustainable Development Goals. Retrieved from: http://www.undp.org-sustainable development goal. United Nations Global Compact (2022). Sustainable Ocean Principles. Retrieved from: http://www.UN-Global-Compact-Sustainable-Ocean-Principles-Oil-and-Gas.pdf Wang, T., He, G. S., Zhou, Q. L., Gao, J. Z., & Deng, L. J. (2018). Designing a framework for marine ecosystem assets accounting. Ocean & Coastal Management, 16(3), 92-100. Wanta, D., & Gunawan, J. (2021). Sustainability blue disclosures: Index development and preliminary Implementation. JRAK, 13(2), 97-105. World Economic Forum (2020). Nature Risk Rising: Why the Crisis Engulfing Nature Matters for Business and the Economy. Retrieved from: World Economic Forum New Nature Series. World Ocean Assessment II (2021). World Ocean Assessment II. Vol. 1. Retrieved from https://www.un.org/regularprocess/sites/www.un.org.regularprocess/files/2011859-e-woa- ii-vol-i.pdf

More Articles from JOURNAL OF ACCOUNTING AND FINANCIAL MANAGEMENT

Cashflow Management and the Performance of Commercial Banks in Nigeria

Author: Jeffrey Ayas Iyakonbogha, Clement E. Ozele

The Nigerian Code of Corporate Governance and Financial Performance of Deposit Money Banks in Nigeria

Author: i, Eneaniofu Daniel Mmaduakonam, ii, Azolike Nkiru Nkechi, iii, Emeter Patrick Okechukwu, iv, Okwor Emmanuel Ejimnkonye