Disclosure of sustainability of the agriculture production using accounting metrics

Abstract

Previous studies into the sustainability assessment of agriculture business suggests different accounting metrics. The accounting metrics differs of the sustainability disclosure purposes. In the large agricultural entities, the main principles of sustainability disclosure towards the interests of investors. The high-quality information of sustainability is necessary for financial decision making. In the case of micro and small agricultural entities, the sustainability information is necessary not only for financial decisions, but also to ensure interests of rural communities and society. New aspects of sustainability disclosure are related with the goals of the European Green Deal. This study was carried out according to a project of the Ministry of Agriculture of Lithuania, where the task is to determine the criteria of sustainability of the agriculture production at the entity level, and to prepare an evaluation and control system. Here is still not clear what accounting metrics is suitable for agriculture entities, as previous studies suggest contradictory accounting metrics. The aim of this study is suggesting the accounting metrics for sustainability disclosure of the agriculture production, which also let to measure the level of sustainability. To address this, the scientific literature and good practices were analysed. The authors find large variation of accounting metrics for sustainability disclosure of the agriculture production. After the examining the details of accounting metrics, the authors suggested the accounting metrics for sustainability disclosure including environment, economic, social and management dimension. In each dimension were suggested three types of accounting metrics for sustainability disclosures – basic, additional, and recommended accounting metrics