Environmental Accounting in Albania: Current Public Disclosure and the Reality Behind Closed Doors

Florinda Zherri; Flutura Kalemi

doi:10.19044/esj.2025.v21n16p53

Florinda Zherri Agricultural University of Tirana, Albania
Flutura Kalemi Agricultural University of Tirana, Albania

DOI: https://doi.org/10.19044/esj.2025.v21n16p53

Keywords: Environmental Accounting; Sustainability Reporting; Developing Countries; EU Corporate Sustainability Reporting Directive (CSRD); implementation barriers

Abstract

Environmental accounting (EA) has become an essential tool for incorporating environmental costs and performance into corporate reporting and decision-making. This paper analyzes the status of EA in Albania, a developing economy and EU candidate, by evaluating the public disclosure of environmental information and the internal practices of EA within enterprises. A content analysis was performed on the websites and financial reports of 100 big Albanian enterprises, in conjunction with a structured survey of 71 managers. Results indicate a substantial disparity between outward reporting and internal practices. Public environmental disclosures are scant; only a limited number of companies release quantitative or financial environmental data, and almost none produce independent sustainability reports, indicating a "gray" reporting environment. Survey results reveal that approximately one-third of organizations have initiated internal environmental accounting practices or sustainability initiatives, albeit without external communication. Significant obstacles hindering the wider implementation of Environmental Accounting encompass constrained financial resources, the absence of regulatory mandates, inadequate stakeholder pressure, and minimal awareness or expertise in sustainable accounting, as noted by prior literature in developing countries. Analyzing the results via stakeholder, legitimacy, and institutional theories indicates that the lack of external pressures and obligatory frameworks has resulted in complacency in disclosure, notwithstanding increasing internal awareness. The research underscores an immediate necessity for enhanced regulatory frameworks, capacity development, and stakeholder involvement in Albania. In aligning with the EU’s CSRD (2022) and global reporting requirements, it is imperative to bridge the divide between public reporting and private practice to enhance corporate transparency and accountability.

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