8. Discussion

The case studies reveal substantial differences between conventional and sustainable accounting results. Companies with high reinvestment and rapid decarbonisation strategies—such as Ørsted—show more resilient business models, while firms with low reinvestment scores risk erosion of their asset base and stranded assets from future climate policy. The SWACC framework makes explicit the implicit assumptions about intergenerational discounting, allowing investors and regulators to calibrate sustainability preferences. Dual reporting highlights how profits shrink once natural capital depreciation is recognised. Carbon budget accounting provides a tangible early warning system: if actual emissions exceed the planned decline path, the firm’s remaining carbon budget rapidly dwindles, signalling a potential need for asset impairments or accelerated transition investments.