ecological accounting
   HOME

TheInfoList




Environmental accounting is a subset of
accounting Accounting or Accountancy is the measurement ' Measurement is the number, numerical quantification (science), quantification of the variable and attribute (research), attributes of an object or event, which can be used to compare with other ob ...
proper, its target being to incorporate both economic and environmental information. It can be conducted at the corporate level or at the level of a national economy through the
System of Integrated Environmental and Economic Accounting System of Environmental-Economic Accounting (SEEA)System of Environmental-Economic Accounting 2012: Central Framework – final, official publication 2012, UN, EC, IMF, OECD and World Ban"System of Integrated Environmental and Economic Accounting" U ...
, a satellite system to the National Accounts of Countries (among other things, the National Accounts produce the estimates of gross domestic product otherwise known as GDP). Environmental accounting is a field that identifies resource use, measures and communicates costs of a company's or national economic impact on the environment. Costs include costs to clean up or remediate contaminated sites, environmental fines, penalties and taxes, purchase of pollution prevention technologies and waste management costs. An environmental accounting system consists of environmentally differentiated conventional accounting and ecological accounting. Environmentally differentiated accounting measures effects of the
natural environment The natural environment or natural world encompasses all life, living and non-living things occurring nature, naturally, meaning in this case not Artificiality, artificial. The term is most often applied to the Earth or some parts of Earth. Th ...

natural environment
on a
company A company, abbreviated as co., is a Legal personality, legal entity representing an association of people, whether Natural person, natural, Legal person, legal or a mixture of both, with a specific objective. Company members share a common pu ...

company
in
monetary Image:National-Debt-Gillray.jpeg, In a 1786 James Gillray caricature, the plentiful money bags handed to King George III are contrasted with the beggar whose legs and arms were amputated, in the left corner, 174x174px Money is any item or verif ...
terms. Ecological accounting measures the influence a company has on the environment, but in physical measurements.


Reasons for use

There are several advantages environmental accounting brings to business; notably, the complete costs, including environmental remediation and long term environmental consequences and externalities can be quantified and addressed. More information about the statistical system of environmental accounts are available here:
System of Integrated Environmental and Economic Accounting System of Environmental-Economic Accounting (SEEA)System of Environmental-Economic Accounting 2012: Central Framework – final, official publication 2012, UN, EC, IMF, OECD and World Ban"System of Integrated Environmental and Economic Accounting" U ...
.


Subfields

Environmental accounting is organized in three sub-disciplines: global, national, and corporate environmental accounting, respectively. Corporate environmental accounting can be further sub-divided into environmental management accounting and environmental financial accounting. * Global environmental accounting is an accounting methodology that deals areas includes energetics, ecology and economics at a worldwide level. * National environmental accounting is an accounting approach that deals with economics on a country's level. : Internationally, environmental accounting has been formalised into the System of Integrated Environmental and Economic Accounting, known as SEEA. SEEA grows out of the System of National Accounts. The SEEA records the flows of raw materials (water, energy, minerals, wood, etc.) from the environment to the economy, the exchanges of these materials within the economy and the returns of wastes and pollutants to the environment. Also recorded are the prices or shadow prices for these materials as are environment protection expenditures. SEEA is used by 49 countries around the world. * Corporate environmental accounting focuses on the cost structure and environmental performance of a company. * Environmental management accounting focuses on making internal business strategy decisions. It can be defined as: :"''..the identification, collection, analysis, and use of two types of information for internal decision making: :1) Physical information on the use, flows and fates of energy, water and materials (including wastes) and :2) Monetary information on environmentally related costs, earnings and savings."' :As part of an environmental management accounting project in the State of Victoria, Australia, four case studies were undertaken in 2002 involving a school (Methodist Ladies College, Perth), plastics manufacturing company (Cormack Manufacturing Pty Ltd, Sydney), provider of office services (a service division of AMP, Australia wide) and wool processing (GH Michell & Sons Pty Ltd, Adelaide). Four major accounting professionals and firms were involved in the project;
KPMG KPMG International Limited (or simply KPMG) is a British-Dutch multinational Multinational may refer to: * Multinational corporation, a corporate organization operating in multiple countries * Multinational force, a military body from multiple ...

KPMG
(Melbourne),
Price Waterhouse Coopers PricewaterhouseCoopers is a multinational Multinational may refer to: * Multinational corporation, a corporate organization operating in multiple countries * Multinational force, a military body from multiple countries * Multinational state, a ...
(Sydney), Professor Craig Deegan,
RMIT University RMIT University, officially the Royal Melbourne Institute of Technology (RMIT),, section 4(b) is a public In public relations Public relations (PR) is the practice of managing and disseminating information from an individual or a ...
(Melbourne) and BDO Consultants Pty Ltd (Perth). In February 2003, John Thwaites, The Victorian Minister for the Environment launched the report which summarised the results of the studies. :These studies were supported by the Department of Environment and Heritage of the
Australian Federal Government The Australian Government, also known as the Commonwealth Government, is the national government of Australia Australia, officially the Commonwealth of Australia, is a Sovereign state, sovereign country comprising the mainland of the ...
, and appear to have applied some of the principles outlined in the
United Nations The United Nations (UN) is an intergovernmental organization aiming to maintain international peace and international security, security, develop friendly relations among nations, achieve international cooperation, and be a centre for harm ...

United Nations
Division for Sustainable Development publication, ''Environmental Management Accounting Procedures and Principles'' (2001). * Environmental financial accounting is used to provide information needed by external
stakeholders Stakeholder may refer to: *Stakeholder (corporate), a group, corporate, organization, member, or system that affects or can be affected by an organization's actions *Project stakeholder, a person, group, or organization with an interest in a projec ...
on a company's financial performance. This type of accounting allows companies to prepare financial reports for investors, lenders and other interested parties. * Certified emission reductions (CERs) accounting comprises the recognition, the non-monetary and monetary evaluation and the monitoring of Certified emission reductions (CERs) and GHGs (greenhouse gases) emissions on all levels of the value chain and the recognition, evaluation and monitoring of the effects of these emissions credits on the
carbon cycle The carbon cycle is the biogeochemical cycle by which carbon is exchanged among the biosphere, pedosphere, geosphere, hydrosphere, and Earth's atmosphere, atmosphere of the Earth. Carbon is the main component of biological compounds as well as ...

carbon cycle
of ecosystems.Kumar, P. and Firoz, M. (2019), "Accounting for certified emission reductions (CERs) in India: An analysis of the disclosure and reporting practices within the financial statements", Meditari Accountancy Research. https://doi.org/10.1108/MEDAR-01-2019-0428


Companies specialised in Environmental Accounting

*
NEMS AS NEMS AS is a Software development, Software Development and Adviser, advisory company, which is specialized in the domain of emissions control of Air pollution, emissions to air and Marine pollution, discharge to sea, as well as Environmental acco ...


Examples of software


EHS Data's Environmental and Sustainability Accounting and Management System

Emisoft's Total Environmental Accounting and Management System (TEAMS)

NEMS's NEMS Accounter


Examples of software as a service


Greenbase Online Environmental Accountancy


See also


References


Notes

# # # # # #


Footnotes


Further reading

* Odum, H.T. (1996) Environmental Accounting: Energy and Environmental Decision Making, Wiley, U.S.A. * Tennenbaum, S.E. (1988)
Network Energy Expenditures for Subsystem Production
', MS Thesis. Gainesville, FL: University of FL, 131 pp. (CFW-88-08)


External links


Green Accounting for Indian States ProjectEnvironmental MBA Degree InfoEnvironmental Accounting in Austria
(Information about environmental accounts, structure, methods, legal basis, scope and application)
Environmental Management Accounting (EMA) Project
Victoria, Australia {{Authority control Environmental economics Sustainability metrics and indices Types of accounting