Assessing Green Accounting Adoption and Practices in Region 1: A Participatory Action Research

Abstract

Green Accounting integrates environmental costs and benefits into traditional accounting systems to measure the impact of human activity on ecological systems and resources. Despite the enactment of Republic Act No. 11995 or the Philippine Ecosystem and Natural Accounting System (PENCAS) Law, studies on the adoption and practices of Green Accounting at the regional level remain limited. This study assessed the current status of Green Accounting adoption in Region 1 through Participatory Action Research. Data were gathered from a review of related literature and existing policies, and from a validated participatory workshop conducted in December 2025 with stakeholders from regional agencies, state universities, and provincial governments. Thirty-five stakeholders were invited; 15 attended physically while all 35 received the complete workshop output for review and validation. The Strengths, Weaknesses, Opportunities, and Threats (SWOT) analysis and Political, Economic, Social, Technological, Legal, and Environmental (PESTLE) analysis were used to evaluate the region’s readiness for implementation. Findings revealed a significant gap between awareness and actual implementation. Key challenges identified include lack of institutional capacity, unclear policy guidelines, and limited stakeholder engagement. While the Philippine Statistics Authority (PSA) has conducted seminars on the PENCAS Law, explicit provisions and mechanisms for Green Accounting adoption at the local level are still lacking. Based on these findings, the study recommends policy adjustments, targeted awareness initiatives, and institutional capacity building to facilitate Green Accounting implementation. Integrating Green Accounting into existing regional and local frameworks can contribute to environmental sustainability, economic resilience, and the achievement of the Sustainable Development Goals (SDGs). This study provides baseline data to support policy development and academic discourse on Green Accounting in the Philippines.