Integrating Sustainability Reporting and Accounting Disclosures in the Biopharmaceutical Industry: A Strategy for Achieving Carbon Neutrality and Enhancing Commercial Viability

Abstract

This study explores the strategic role of corporate accounting information disclosure within the biopharmaceutical industry, emphasizing its impact on achieving carbon neutrality and carbon peaking goals. The research focuses on the methods of accounting information disclosure prevalent in the sector, primarily through annual reports and environmental information disclosures. We delineate two main types of accounting information: monetary and non-monetary carbon accounting data. An evaluation index system for accounting information disclosure is developed, tailored specifically for the biopharmaceutical industry, to facilitate analysis based on disclosure modes and content. Quantitative analysis was conducted on empirical data to investigate the correlation between the targets of carbon neutrality, carbon peaking, and the scope and quality of corporate accounting disclosures. Findings from the study indicate a significant increase in carbon accounting information disclosure scores, which rose from 3.55 in 2016 to 4.75 in 2020, marking an improvement of 1.2 points. Concurrently, profitability exhibited a growth of 33.59 percentage points, while operational capacity improved by 43.49%. These results underscore that enhanced disclosure capabilities in carbon accounting not only support compliance with environmental goals but also substantially boost the financial and operational performance of firms within the biopharmaceutical industry. This analysis demonstrates that rigorous accounting disclosures related to carbon metrics are crucial for companies aiming to align with global sustainability targets. Enhanced transparency in carbon accounting fosters greater financial health, suggesting a valuable intersection of environmental responsibility and business excellence. The implications of this study are profound, advocating for a more integrated approach to sustainability reporting that could serve as a model for biotechnological firms globally.