دراسة الأطر القانونية التي تحكم ممارسات المحاسبة البيئية وانعكاساتها على تقارير الاستدامة للشركات
INVESTIGATING THE LEGAL FRAMEWORKS GOVERNING ENVIRONMENTAL ACCOUNTING PRACTICES AND THEIR IMPLICATIONS FOR CORPORATE SUSTAINABILITY REPORTING IN SAUDI ARABIA
DOI:
https://doi.org/10.33102/mjsl.vol13no1.977Keywords:
Environmental governance, environmental regulations, environmental reporting, sustainability reporting, Saudi Arabia, al-ḥukūmah al-bīʾīyah, al-qawānīn al-bīʾīyah, taqārīr al-istidāmah al-bīʾīyah, al-Mamlakah al-ʿArabīyah as-SuʿūdīyahAbstract
Saudi Arabia has prioritized environmental sustainability and corporate responsibility in alignment with Vision 2030, leading to a heightened focus on environmental protection and sustainable development. Consequently, the legal landscape governing environmental accounting practices and corporate sustainability reporting has gained increasing significance. This study investigates the legal frameworks regulating environmental accounting practices in Saudi Arabia and their influence on corporate sustainability reporting. The study aims to analyse the existing legal frameworks, assess their impact on corporate financial reporting of environmental matters, and offer recommendations to enhance the effectiveness of these frameworks in promoting sustainability disclosures, with a particular focus on environmental impact. The researchers employed a mixed-methods approach, combining inductive, descriptive-analytical, and quantitative techniques to explore the effects of environmental regulations on sustainability reporting in Saudi Arabia. Data were gathered through a questionnaire distributed to financial managers and environmental experts within companies. Statistical analysis was used to identify patterns and relationships, offering insights into the connection between legal frameworks and sustainability reporting. The findings reveal that while Saudi Arabia has made strides in integrating environmental policies into its regulatory and legal systems, these efforts remain limited in terms of accounting and governance compared to more developed nations. Environmental regulations tend to focus more on procedural and technical aspects rather than on accounting practices reflected in financial disclosures. This lack of specific requirements may undermine the transparency and credibility of corporate sustainability reports. The study recommends the establishment of clear and specific environmental accounting standards and the implementation of a legal framework requiring companies to prepare integrated financial reports that disclose governance practices, social responsibility, and environmental impact. The enforcement of these regulations should be strengthened through key institutions such as the Tadawul Stock Exchange, the Saudi Central Bank, and other regulatory bodies.
الملخص
أكدت المملكة العربية السعودية على الاستدامة البيئية ومسؤولية الشركات بما يتماشى مع رؤية 2030، وقد أدى ذلك إلى التركيز المتزايد على حماية البيئة والتنمية المستدامة، وبالتالي، أصبح المشهد القانوني الذي يحكم ممارسات المحاسبة البيئية وتقارير استدامة الشركات ذا أهمية متزايدة. وعليه، يدرس البحث الأطر القانونية التي تحكم ممارسات المحاسبة البيئية في المملكة العربية السعودية وتأثيرها على تقارير استدامة الشركات. وتتمثل أهداف هذه الدراسة في تحليل الأطر القانونية الحالية، وتقييم تأثيرها على ممارسات إعداد التقارير المالية للشركات على الأثر البيئي، واقتراح توصيات لتعزيز فعالية الأطر القانونية في الإفصاح عن الاستدامة بشكل عام والأثر البيئي بشكل خاص. استخدم الباحثون منهجًا مختلطًا يشمل الأساليب الاستقرائية، والوصفية التحليلية، والكمية لدراسة تأثير الأنظمة والقوانين البيئية في إعداد تقارير الاستدامة في المملكة العربية السعودية، حيث جمُعت البيانات باستخدام استبانة موزعة على المدراء الماليين والخبراء البيئيين في الشركات، وتم تحليل البيانات باستخدام تقنيات إحصائية لتحديد الأنماط والعلاقات، مما يوفر رؤى حول العلاقة بين الأطر القانونية وإعداد تقارير الاستدامة. وقد خلصت نتائج الدراسة إلى أنّه بالرغم من أنّ المملكة العربية السعودية بدأت بدمج السياسات البيئية في أٌطرها التنظيمية والقانونية، إلا أنّ هذه الجهود لا تزال تفتقر إلى جوانب محاسبية وحوكمة مقارنة بالدول الأكثر تقدمًا، فالنصوص القانونية المرتبطة بالبيئة ما هي إلا جوانب إجرائية وفنية أكثر منها محاسبية أو منعكسة على التقارير المالية، وقد يؤثر هذا الافتقار على المتطلبات المحددة لشفافية ومصداقية تقارير الاستدامة للشركات. وعليه، يوصي الباحثون بسنّ لوائح بيئية واضحة ومحددة، وفرض إطار قانوني يشمل إلزام الشركات بإعداد التقارير المالية التكاملية للإفصاح عن ممارسات الحوكمة والمسؤولية الاجتماعية والأثر البيئي، وتعزيز آليات التنفيذ من خلال سوق تداول، والهيئات الرقابية والتنفيذية الأخرى.
Downloads
References
ʿAbduh, ʾA. ʿA. Kh. (2023). ʾAthar mumārāsāt al-muḥāsabah al-bīʾiyyah ʿalá jawdat al-arbāḥ wa-kafāʾat al-ʾadāʾ al-mālī. Majallat al-Iskandariyyah lil-Buḥūth al-Muḥāsabīyah, 7(3), 213–249. https://doi.org/10.21608/atasu.2018.37807
Abkar, Ḥ. B. J., & Abkar, Ḥ. Ā. Sh. (2024). Dawr al-qiyās al-muḥāsabī li-al-takālīf al-bīʾiyyah fī taʿzīz al-tanmiyah al-mustadāmah: Dirāsah maydānīyah ʿalá sharikāt al-sukkar al-Sūdānīyah. Majallah Markaz Jazīrat al-ʿArab lil-Buḥūth al-Tarbawīyah wa-al-Insānīyah, 3(21), 50–74. https://doi.org/10.56793/pcra2213213
ACWA. (2025). “Integrated annual report | 2023”. https://ar2023.acwapower.com/en/sustainability-review/environment#:~:text=ACWA%20Power%20has%20targets%20for,with%20each%20project's%20environmental%20targets
Akhter, F., Hossain, M. R., Elrehail, H., Rehman, S. U., & Almansour, B. (2023). Environmental disclosures and corporate attributes, from the lens of legitimacy theory: A longitudinal analysis on a developing country. European Journal of Management and Business Economics, 32(3), 342–369.
Al Sagga, O. (2023, September). “Saudi Arabia’s extraordinary approach to making sustainability commonplace”. PWC. https://www.pwc.com/m1/en/media-centre/articles/saudi-arabia-extraordinary-approach-to-making-sustainability-commonplace.html
al-Darīwī, ʾA., & al-Tāraqī, F. (2024). Muṭṭalabāt taṭbīq al-muḥāsabah al-bīʾiyyah fī al-bīʾah al-Lībīyah. Majallah al-Dirāsāt al-Iqtiṣādīyah, 7(1), 175–195. https://doi.org/10.37375/esj.v7i1.2708
al-Kashar, ʾA. ʿA. (2024). ʿAwāmil al-najāḥ al-ḥāsimah li-tanfīdh mumārasāt al-muḥāsabah al-idārīyah al-bīʾiyyah. Majallah al-ʿUlūm al-Iqtiṣādīyah wa-al-Siyāsīyah, 21(1), 44–61.
al-Kubaysī, ʿA. ʿA. ʿA., & Ṣāliḥ, M. M. ʿA. (2015). Taḥlīl al-ʿawāmil al-ʾasāsīyah li-taṭbīqāt al-muḥāsabah al-bīʾiyyah fī al-sharikāt al-ṣināʿīyah. Majallah al-Mithqāl lil-ʿUlūm al-Iqtiṣādīyah wa-al-Idārīyah, 1(1), 11–67. https://doi.org/10.12816/0015659
Almaqtari, F. A., Elsheikh, T., Abdelkhair, F., & Mazrou, Y. S. A. (2023). The impact of corporate environmental disclosure practices and board attributes on sustainability: Empirical evidence from Asia and Europe. Heliyon, 9(8), 1–20.
Almaqtari, F. A., Elsheikh, T., Hashim, H. A., & Youssef, M. A. E.-A. (2024). Board attributes and environmental and sustainability performance: Moderating role of environmental teams in Asia and Europe. Sustainable Futures, 7, 1–16.
Almaqtari, F. A., Elsheikh, T., Hussainey, K., & Al-Bukhrani, M. A. (2023). Country-level governance and sustainable development goals: Implications for firms’ sustainability performance. Studies in Economics and Finance, 41(3), 684-723.
Almaqtari, F. A., Elsheikh, T., Tawfik, O. I., & Youssef, M. A. E.-A. (2022). Exploring the impact of sustainability, board characteristics, and firm-specifics on firm value: A comparative study of the United Kingdom and Turkey. Sustainability, 14(24), 16395.
Almaqtari, F., Elsheikh, T., Al-Hattami, H. M., & Mishra, N. (2023). The impact of board characteristics on environmentally friendly production: A cross-country study in Asia and Europe. Journal of Cleaner Production, 392, 1–18.
al-Muṭayrī, B. Kh. F. (2022). Dawr al-muḥāsabah al-bīʾiyyah fī taḥqīq al-tanmiyah al-mustadāmah. al-Majallah al-ʿIlmīyah lil-Dirāsāt wa-al-Buḥūth al-Mālīyah wa-al-Idārīyah, 13(2), 2264–2303.
al-Qaṣāṣ, ʿA. ʾA. (2023). Muṭṭalabāt taṭbīq niẓām al-muḥāsabah al-bīʾiyyah wa-al-iqtiṣādīyah al-duwalī SEEA. al-Majallah al-Miṣrīyah lil-Tanmiyah wa-al-Takhṭīṭ, 31(4), 1–30.
al-Sharīf, J. ʿA. (2024). Maʿawwiqāt taṭbīq al-muḥāsabah al-bīʾiyyah fī al-munshaʾāt al-ṣināʿīyah al-Suʿūdīyah wa-al-naẓrah al-mustaqbalīyah li-tajāwuzihā. Majallah Dirāsāt al-Khalīj wa-al-Jazīrah al-ʿArabīyah, 50(192), 75–120. https://doi.org/10.34120/jgaps.v50i192.23
Ammer, M. A., Aliedan, M. M., & Alyahya, M. A. (2020). Do corporate environmental sustainability practices influence firm value? The role of independent directors: Evidence from Saudi Arabia. Sustainability, 12(22), 1–21. https://doi.org/10.3390/su12229768
Aramco. (2025). “Environment and climate change. We understand the importance of managing precious natural resources”. Aramco. https://www.aramco.com/en/investors/environmental-social-and-governance/environment-and-climate-change
Biswas, P. K., Mansi, M., & Pandey, R. (2018). Board composition, sustainability committee and corporate social and environmental performance in Australia. Pacific Accounting Review, 30(4), 517–530. https://doi.org/10.1108/PAR-12-2017-0107/full/xml
Buloshi, A. S. Al, & Ramadan, E. (2015). Climate change awareness and perception amongst the inhabitants of Muscat Governorate, Oman. American Journal of Climate Change, 4(4), 330–336. https://doi.org/10.4236/ajcc.2015.44026
Camilleri, M. A. (2015). Environmental, social and governance disclosures in Europe. Sustainability Accounting, Management and Policy Journal, 6(2), 224–242. https://doi.org/10.1108/SAMPJ-10-2014-0065
Chen, X., Li, W., Chen, Z., & Huang, J. (2022). Environmental regulation and real earnings management—Evidence from the SO2 emissions trading system in China. Finance Research Letters, 46, 1–11. https://doi.org/10.1016/j.frl.2021.102418
Ding, H., He, M., & Deng, C. (2014). Lifecycle approach to assessing environmental friendly product project with internalizing environmental externality. Journal of Cleaner Production, 66, 128–138. https://doi.org/10.1016/j.jclepro.2013.10.018
Dixon-Fowler, H. R., Ellstrand, A. E., & Johnson, J. L. (2017). The role of board environmental committees in corporate environmental performance. Journal of Business Ethics, 140(3), 423–438. https://doi.org/10.1007/s10551-015-2664-7
García, C. J., Herrero, B., Miralles-Quirós, J. L., & del Mar Miralles-Quirós, M. (2023). Exploring the determinants of corporate green bond issuance and its environmental implication: The role of corporate board. Technological Forecasting and Social Change, 189, 1–12. https://doi.org/10.1016/j.techfore.2023.122379
Gerged, A. M., Albitar, K., & Al-Haddad, L. (2021). Corporate environmental disclosure and earnings management—The moderating role of corporate governance structures. International Journal of Finance and Economics, 28(3), 2789–2811. https://doi.org/10.1002/ijfe.2564
Hamed, R. S., Al-Shattarat, B. K., Al-Shattarat, W. K., & Hussainey, K. (2022). The impact of introducing new regulations on the quality of CSR reporting: Evidence from the UK. Journal of International Accounting, Auditing and Taxation, 46, 1–19. https://doi.org/10.1016/j.intaccaudtax.2021.100444
Hilāl, H. (2018). Dawr al-ʾifṣāḥ al-muḥāsabī fī tafʿīl ʾathar al-muḥāsabah al-bīʾiyyah ʿalá takhfīḍ al-mukhāṭir al-bīʾiyyah. al-Fikr al-Muḥāsabī, 22(3), 833–863. https://doi.org/10.21608/atasu.2018.37807
Husted, B. W., & Sousa-Filho, J. M. de. (2019). Board structure and environmental, social, and governance disclosure in Latin America. Journal of Business Research, 102, 220–227. https://doi.org/10.1016/j.jbusres.2018.01.017
Jiang, Y., Fan, H., Zhu, Y., & Xu, J. F. (2023). Carbon disclosure: A legitimizing tool or a governance tool? Evidence from listed US companies. Journal of International Financial Management & Accounting, 34(1), 36–70. https://doi.org/10.1111/jifm.12161
Karīmah, D. ʿA. ʾA. (2011). ʾAthar al-ʾifṣāḥ al-ikhtiyārī ʿan maʿlūmāt al-muḥāsabīyah al-bīʾiyyah ʿalá al-ʾadāʾ al-mālī wa-al-sūqī. al-Fikr al-Muḥāsabī, 25(2), 1–43.
Konadu, R., Ahinful, G. S., Boakye, D. J., & Elbardan, H. (2022). Board gender diversity, environmental innovation and corporate carbon emissions. Technological Forecasting and Social Change, 174, 121279.
Kostka, G., & Nahm, J. (2017). Central-local relations: Recentralization and environmental governance in China. China Quarterly, 231, 567–582. https://doi.org/10.1017/S0305741017001011
Kumari, P. S. R., Makhija, H., Sharma, D., & Behl, A. (2022). Board characteristics and environmental disclosures: Evidence from sensitive and non-sensitive industries of India. International Journal of Managerial Finance, 18(4), 677–700. https://doi.org/10.1108/IJMF-10-2021-0547
Magness, V. (2006). Strategic posture, financial performance and environmental disclosure: An empirical test of legitimacy theory. Accounting, Auditing and Accountability Journal, 19(4), 540–563. https://doi.org/10.1108/09513570610679128
Manes-Rossi, F., Tiron-Tudor, A., Nicolò, G., & Zanellato, G. (2018). Ensuring more sustainable reporting in Europe using non-financial disclosure—De facto and de jure evidence. Sustainability, 10(4), 1-20. https://doi.org/10.3390/su10041162
Meng, J., & Zhang, Z. X. (2022). Corporate environmental information disclosure and investor response: Evidence from China’s capital market. Energy Economics, 108, 1-15. https://doi.org/10.1016/j.eneco.2022.105886
Monteiro, A. P., Pereira, C., & Barbosa, F. M. (2021). Environmental disclosure on mandatory and voluntary reporting of Portuguese listed firms: The role of environmental certification, lucratively and corporate governance. Meditari Accountancy Research, 31(3), 524–553. https://doi.org/10.1108/MEDAR-09-2020-1001/full/xml
Nor, N. M., Bahari, N. A. S., Adnan, N. A., Kamal, S. M. Q. A. S., & Ali, I. M. (2016). The effects of environmental disclosure on financial performance in Malaysia. Procedia Economics and Finance, 35, 117–126. https://doi.org/10.1016/s2212-5671(16)00016-2
Ortiz-de-Mandojana, N., Aguilera-Caracuel, J., & Morales-Raya, M. (2016). Corporate governance and environmental sustainability: The moderating role of the national institutional context. Corporate Social Responsibility and Environmental Management, 23(3), 150–164. https://doi.org/10.1002/csr.1367
Osemene, O. F., Adinnu, P., Fagbemi, T. O., & Olowookere, J. K. (2021). Corporate governance and environmental accounting reporting in selected quoted African companies. Global Business Review, 25(4), 1–23. https://doi.org/10.1177/09721509211010989
Paavola, J. (2007). Institutions and environmental governance: A reconceptualization. Ecological Economics, 63(1), 93–103. https://doi.org/10.1016/j.ecolecon.2006.09.026
Peters, G. F., & Romi, A. M. (2014). Does the voluntary adoption of corporate governance mechanisms improve environmental risk disclosures? Evidence from greenhouse gas emission accounting. Journal of Business Ethics, 125(4), 637–666. https://doi.org/10.1007/s10551-013-1886-9
Prasad, M., Mishra, T., & Kalro, A. D. (2017). Environmental disclosure by Indian companies: An empirical study. Environment, Development and Sustainability, 19(5), 1999–2022. https://doi.org/10.1007/s10668-016-9840-5/tables/8
Qureshi, M. A., Kirkerud, S., Theresa, K., & Ahsan, T. (2020). The impact of sustainability (environmental, social, and governance) disclosure and board diversity on firm value: The moderating role of industry sensitivity. Business Strategy and the Environment, 29(3), 1199–1214. https://doi.org/10.1002/bse.2427
Rohani, A., Jabbour, M., & Aliyu, S. (2023). Corporate incentives for obtaining higher level of carbon assurance: Seeking legitimacy or improving performance? Journal of Applied Accounting Research, 24(4), 701–725. https://doi.org/10.1108/jaar-03-2022-0055/full/xml
Sar al-Khatm, ʿA. B. (2021). ʾAthar al-ʾifṣāḥ ʿan al-muḥāsabah al-bīʾiyyah ʿalá jawdat ʾadāʾ al-munshaʾāt al-tijārīyah. Majallah al-ʿUlūm al-Iqtiṣādīyah wa-al-Idārīyah wa-al-Qānūnīyah, 5(7), 180–191. https://doi.org/10.26389/AJSRP.B210920
Saudi Basic Industries Corporation. (2025). “Climate transition analysis”. https://planet-tracker.org/wp-content/uploads/2024/08/Sabic_CTA_report.pdf
Tang, P., Wang, C., Jiang, Q., Liu, X., & Wang, J. (2023). Symbol or substance? Environmental regulations and corporate environmental actions decoupling. Journal of Environmental Management, 346, 118950. https://doi.org/10.1016/j.jenvman.2023.118950
Van Hoang, T. H., Przychodzen, W., Przychodzen, J., & Segbotangni, E. A. (2021). Environmental transparency and performance: Does the corporate governance matter? Environmental and Sustainability Indicators, 10, 1–11. https://doi.org/10.1016/j.indic.2021.100123
Wang, D., Li, X., Tian, S., He, L., Xu, Y., & Wang, X. (2021). Quantifying the dynamics between environmental information disclosure and firms’ financial performance using functional data analysis. Sustainable Production and Consumption, 28, 192–205. https://doi.org/10.1016/j.spc.2021.03.026
Downloads
Published
Issue
Section
Categories
License
Copyright (c) 2025 Faozi A. Almaqtari, Nahla Abdulrahman Raweh, Abdulwahid Ahmad Hashed Abdullah

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.