The Role of Green Accounting in Reducing Operational and Environmental Risks of Extractive Companies: An Analytical Study Using Financial Resilience and Feasibility “Indicators”

This study aims to explore the role of green accounting in reducing operational and environmental risks in industrial companies and to achieve this goal, the descriptive-analytical approach was adopted to root the intellectual framework of the variables, and the applied mathematical approach was adopted through a hypothetical case study of an industrial company (Al-Rafidain Construction Industries Company) for three consecutive years (2023-2025). The study relied on the method of ratios, mathematical indicators, and flexibility coefficients to measure the extent to which risk losses respond to changes in the volume of expenditure on green accounting. The study concluded that there was a clear inverse relationship, as increasing the intensity of environmental expenditure contributed to reducing the losses of operational and environmental risks by negative elasticity ratios of (-0.20) and (-0.27) respectively. The study recommends the need to integrate environmental costs into the accounting systems of industrial companies as a proactive tool to manage risks and avoid legal fines and production stoppages.