Author(s): Matteo Ferrari
As environmental concerns become increasingly significant in the global economy, the need for transparent and accountable corporate practices has grown. Environmental Financial Accounting (EFA) has emerged as a critical tool for integrating environmental impacts into financial reporting, enabling stakeholders to make informed decisions based on a company's environmental performance. This article explores the role of EFA in enhancing corporate transparency, detailing how it contributes to better environmental governance, improves stakeholder trust, and supports sustainable business practices. Additionally, it discusses the challenges and future prospects of implementing EFA in various industries