Integrating financial, social and environmental accounting

Purpose The purpose of this paper is to propose a public policy solution to updating mainstream financial accounting from its nineteenth century roots and make it more relevant and consistent with public policy, individual investor motivations and global needs as exemplified in the sustainability development goals. Many approaches to integrating social and environmental accounts with financial accounts are additive; the two types of accounting information sit alongside each other. The opportunity to revise the basic building block of financial accounting, information to help investors make economic decisions relating to investments to increase integration and recognition that this is a public policy decision and not an accounting profession decision, is rarely considered. Design/methodology/approach The approach is a viewpoint on the opportunities for and benefits of integration of financial, social and environmental accounting. Findings The current basis of financial accounting does not reflect private investors' motivations, and changing the basis of accounting is a public policy issue. Originality/value There are several approaches for integrating social environmental and financial accounting; however, the proposal that integration would result from a change in public policy specifically clarifying and updating investor motivation provides a possible solution to many of the challenges of integration.