THE IMPACT OF GREEN BONDS ON THE DEVELOPMENT OF ENVIRONMENTAL ACCOUNTING: AN ANALYTICAL STUDY ON SAUDI AND EMIRATI COMPANIES

Abstract

This study investigates the impact of green bonds on the development of environmental accounting within Saudi and Emirati companies. Against a backdrop of increasing global focus on sustainable finance and corporate responsibility, green bonds have emerged as a financial instrument linking capital markets with environmental performance. Using a mixed-methods approach incorporating statistical analysis (ANOVA, regression) and empirical data from 2012 to 2024, the study explores emissions trends, environmental reporting practices, and investment behavior post-issuance of green bonds.

Findings indicate that green bonds have significantly influenced environmental accounting practices. Notably, the number of sustainability reports, environmental KPIs, third-party certifications, and external audits increased sharply after 2018—coinciding with the adoption of green finance frameworks. However, statistical tests reveal that the direct impact on emission reductions remains statistically weak in the short term, suggesting the need for longer implementation horizons and policy reinforcement.

The research contributes to the growing literature on green finance by empirically linking financial tools with environmental disclosure practices, signaling a cultural and institutional shift in corporate governance. It recommends that policymakers enhance regulatory frameworks, companies adopt global reporting standards, and investors use environmental metrics to guide sustainable decision-making.