Which of the following is NOT a key principle of sustainability accounting?

The principle of sustainability accounting primarily focuses on frameworks that ensure organizations are responsible for their environmental and social impacts, as well as their economic performance. Transparency, accountability, and relevance are all essential components of sustainability accounting that ensure stakeholders can make informed decisions based on clear, accessible, and pertinent information regarding sustainability practices.

Transparency refers to the clarity and openness with which a company communicates its sustainability efforts and results. It allows stakeholders to understand how the organization operates and its impact on the environment and society. Accountability ensures that organizations can be held responsible for their actions and that they provide evidence of their sustainability claims. Relevance emphasizes the importance of providing information that is pertinent and significant to decision-making processes related to sustainability issues.

In contrast, liquidity does not pertain to the principles of sustainability accounting. While liquidity is an important financial metric that assesses an organization's ability to meet its short-term obligations, it does not directly relate to sustainability practices or the accountability and transparency of environmental, social, and governance (ESG) issues. Therefore, it is not considered a key principle in the context of sustainability accounting.