Analysis of Problems and Countermeasures Regarding the Capitalization of R&D Expenditures from an ESG Perspective

Abstract

In current accounting practices, the capitalization of R&D expenditures has garnered increasing attention, particularly against the backdrop of deepening innovation-driven development policies and ESG principles. This paper analyzes the issues of inadequate integration of environmental costs, ambiguous definition of social costs, and insufficient decision-making transparency in R&D capitalization from the perspective of the three pillars of ESG—environmental, social, and governance. It proposes corresponding countermeasures across four dimensions: ESG disclosure systems, accounting policies, accounting personnel, and external auditing.