AUDIT OF ENVIRONMENTAL COSTS AND LIABILITIES IN THE GREEN ECONOMY
Abstract
In the green economy, environmental costs and liabilities increasingly determine enterprise profitability, solvency, and market access. Their materiality is evident in global estimates: “the cost of the health damage caused by air pollution amounts to $8.1 trillion a year, equivalent to 6.1% of global GDP” [1]. Corporate disclosures also confirm that environmental factors translate into large financial exposure: “The potential financial impact of water risk is $531,058,809,825” based on 2023 reporting data [2]. In parallel, climate policy instruments are strengthening price signals; for example, “the average price in 2024 was EUR 64.74” for EU ETS auctions [3].
References
1. World Bank. What you need to know about climate change and air pollution (2022): air pollution health damage $8.1 trillion, 6.1% of global GDP.
2. CDP. Financial Sector Water Knowledge Hub / Water Security disclosure insights (2023): potential financial impact of water risk $531,058,809,825.
3. European Commission / EU ETS market reporting (via ICAP facts/summary): average EU ETS auction price EUR 64.74 in 2024.
4. IFAC. Guidance on integrated internal control and trust in sustainability reporting (2023–2024).
