The Role of Green Accounting in Supporting Climate Action and SDG 13 in Sri Lanka: A Systematic Literature Review

Abstract

Climate change presents a critical economic, social, and environmental challenge globally. United Nations Sustainable Development Goal (SDG) 13 calls for urgent national and organizational climate action. However, conventional financial accounting systems routinely fail to capture environmental costs and physical climate risks, leaving organizational decision-makers without actionable data. To address this limitation, green accounting has emerged as key strategic tool. This paper presents a systematic literature review evaluating how green accounting practices support climate action and advance SDG

13, with a contextual focus on Sri Lanka. Following a PRISMA- compliant methodology, literature was retrieved across six academic

databases alongside official Sri Lankan policy repositories for the primary period 2021–2026 (with key institutional policies traced back to 2016), resulting in a final synthesis of 96 sources. Analysis revealed six core themes: the conceptual evolution of green accounting; operational green accounting practices; the integration of climate mitigation and adaptation metrics; alignment with specific SDG 13 targets; Sri Lanka’s policy and regulatory framework; and primary implementation barriers. Findings demonstrate strong alignment between green accounting practices and SDG Target 13.2 (integrating climate measures into national policies). Alignment with Target 13.1 (strengthening resilience through risk disclosure) is emerging but less developed, whereas research addressing Target 13.3 (capacity building) remains largely underrepresented. In Sri Lanka, progressive policy mechanisms including the National Environmental Action Plan 2022–2030, updated Nationally Determined Contributions (NDCs),

and the National Green Reporting System exist, yet organizational- level accounting infrastructure remains insufficient, revealing a

pronounced policy-practice gap. This paper establishes an integrated conceptual framework while outlining key directions for future empirical research.