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Salman Khan
B.pharma+MBA
Subj. - E&D mgmt.
Environmental accounting is a field that identifies
resource use, measures and communicates costs of a
company's or national economic impact on
the environment.
.
Environmental accounting is the practice of using
traditional accounting and finance principles to calculate
the costs that business decisions will have on the
environment. For example, before choosing to close down
a manufacturing plant and outsourcing the function to a
foreign corporation, a business uses environmental
accounting to determine the short- and long-term effects
of the decision, such as unemployment in the plant’s
region. Environmental accounting is often championed as
a component of corporate social responsibility.
Methods
Businesses use three generally accepted methods to
implement environment accounting:
• financial accounting,
• managerial accounting,
• income accounting.
Financial accounting is the process of preparing financial
reports, such as earning statements, for presentation to
investors, lenders, governing bodies and other members of the
public. In this instance, environmental accounting estimates are
presented as part of the financial accounting reports.
Implementation
Environmental accounting can be implemented by businesses of all
sizes. Whether administered by a global corporation or a small
business, elements need to be in place for success. The firm’s senior
management team must support these practices. These leaders are
instrumental in setting a positive tone when communicating the
benefits of environmental accounting practices to the employee
population. The senior management team would be best served by
developing cross-functional teams to administer the process.
Consisting of employees across all business lines, including finance,
sales, manufacturing and procurement, these teams ensure that all
environmental accounting policies and procedures are communicated
and followed.
Process of environmental accounting
An environmental audit is a type of evaluation intended
to identify environmental compliance and management
system implementation gaps, along with related
corrective actions. In this way they perform an analogous
(similar) function to financial audits.
What is the purpose of environmental audit?
Environmental auditing is a systematic, documented,
periodic and objective process in assessing an
organization's activities and services in relation to:
Assessing compliance with relevant statutory and internal
requirements. Facilitating management control of
environmental practices.
What are the objectives of environmental auditing?
The key objectives of an environmental audit therefore are to:
determine how well the environmental management systems
and equipment are performing. verify compliance with the
relevant national, local or other laws and regulations. minimize
human exposure to risks from environmental, health and safety
problems
Environmental Audit - A Simple Guide
•Assessing compliance with relevant statutory and internal
requirements.
•Facilitating management control of environmental practices.
•Promoting good environmental management.
•Maintaining credibility with the public.
•Raising staff awareness and enforcing commitment to
departmental environmental policy.
Areas covered and benefits delivered
The environmental impacts covered by an audit may
include:
•Energy
•Carbon dioxide and other emissions
•Waste
•Water
•Transport
•Biodiversity
•Procurement
The benefits of the audit include:
•Ensuring legislative compliance
•Reducing environmental impacts
•Reducing waste, water and energy costs (annual savings are
typically greater than our fee for the audit)
•Improving relations with stakeholders
•Providing the foundation for an environmental management
system (EMS) such as ISO 14001 at a later date
What are Environmental Ethics?
Environmental ethics is a branch of ethics that studies the
relation of human beings and the environment and how ethics
play a role in this. Environmental ethics believe that humans are
a part of society as well as other living creatures, which includes
plants and animals. These items are a very important part of the
world and are considered to be a functional part of human life.
“In environmental philosophy, environmental ethics is an
established field of practical philosophy “which
reconstructs the essential types of argumentation that can
be made for protecting natural entities and the sustainable
use of natural resources.” The main competing paradigms
are anthropocentrism, physiocentrism (called ecocentrism
as well), and theocentrism. Environmmental ethics exerts
influence on a large range of disciplines including
environmental law, environmental sociology, ecotheology,
ecological economics, ecology and environmental
geography.”
Reference :-
Wikipedia
Sciencedirect
!

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Environmental accounting, environmental audit, environmental ethics

  • 2. Environmental accounting is a field that identifies resource use, measures and communicates costs of a company's or national economic impact on the environment. . Environmental accounting is the practice of using traditional accounting and finance principles to calculate the costs that business decisions will have on the environment. For example, before choosing to close down a manufacturing plant and outsourcing the function to a foreign corporation, a business uses environmental accounting to determine the short- and long-term effects of the decision, such as unemployment in the plant’s region. Environmental accounting is often championed as a component of corporate social responsibility.
  • 3. Methods Businesses use three generally accepted methods to implement environment accounting: • financial accounting, • managerial accounting, • income accounting. Financial accounting is the process of preparing financial reports, such as earning statements, for presentation to investors, lenders, governing bodies and other members of the public. In this instance, environmental accounting estimates are presented as part of the financial accounting reports.
  • 4. Implementation Environmental accounting can be implemented by businesses of all sizes. Whether administered by a global corporation or a small business, elements need to be in place for success. The firm’s senior management team must support these practices. These leaders are instrumental in setting a positive tone when communicating the benefits of environmental accounting practices to the employee population. The senior management team would be best served by developing cross-functional teams to administer the process. Consisting of employees across all business lines, including finance, sales, manufacturing and procurement, these teams ensure that all environmental accounting policies and procedures are communicated and followed. Process of environmental accounting
  • 5. An environmental audit is a type of evaluation intended to identify environmental compliance and management system implementation gaps, along with related corrective actions. In this way they perform an analogous (similar) function to financial audits. What is the purpose of environmental audit? Environmental auditing is a systematic, documented, periodic and objective process in assessing an organization's activities and services in relation to: Assessing compliance with relevant statutory and internal requirements. Facilitating management control of environmental practices.
  • 6. What are the objectives of environmental auditing? The key objectives of an environmental audit therefore are to: determine how well the environmental management systems and equipment are performing. verify compliance with the relevant national, local or other laws and regulations. minimize human exposure to risks from environmental, health and safety problems Environmental Audit - A Simple Guide •Assessing compliance with relevant statutory and internal requirements. •Facilitating management control of environmental practices. •Promoting good environmental management. •Maintaining credibility with the public. •Raising staff awareness and enforcing commitment to departmental environmental policy.
  • 7. Areas covered and benefits delivered The environmental impacts covered by an audit may include: •Energy •Carbon dioxide and other emissions •Waste •Water •Transport •Biodiversity •Procurement The benefits of the audit include: •Ensuring legislative compliance •Reducing environmental impacts •Reducing waste, water and energy costs (annual savings are typically greater than our fee for the audit) •Improving relations with stakeholders •Providing the foundation for an environmental management system (EMS) such as ISO 14001 at a later date
  • 8.
  • 9. What are Environmental Ethics? Environmental ethics is a branch of ethics that studies the relation of human beings and the environment and how ethics play a role in this. Environmental ethics believe that humans are a part of society as well as other living creatures, which includes plants and animals. These items are a very important part of the world and are considered to be a functional part of human life. “In environmental philosophy, environmental ethics is an established field of practical philosophy “which reconstructs the essential types of argumentation that can be made for protecting natural entities and the sustainable use of natural resources.” The main competing paradigms are anthropocentrism, physiocentrism (called ecocentrism as well), and theocentrism. Environmmental ethics exerts influence on a large range of disciplines including environmental law, environmental sociology, ecotheology, ecological economics, ecology and environmental geography.”