Environmental accounting plays a crucial role in facilitating the adoption of green innovations by companies, which in turn impact their financial performance. This literature review explores the intersection of environmental accounting, green innovations, and corporate financial reporting. It synthesizes studies on how environmental accounting practices influence the reporting and integration of green innovations, highlighting the importance of transparent environmental disclosures in fostering corporate sustainability. Key findings suggest that companies with robust environmental accounting systems are better equipped to manage green innovations and report their environmental costs and benefits effectively. This paper also identifies gaps in the literature and suggests areas for future research, particularly in the standardization of environmental accounting frameworks and their role in long-term financial outcomes.