Accountants Favor Green Accounting to Sustain the Environment

Published: 05th April 2011
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Dollar is green and so should be the environment. Accountants seem to have struck upon the idea recently called Green Accounting. It is a movement towards sustainability. "Green Accounting" is a term used to portray accounting practices that try to factor environmental costs into the financial results of a company's, or a country's, operations.

Opportunities are flourishing for organizations that are ready to accept the change and be prepared to foresee and exploit new lawmaking factors. The accounting firms today are sure that the green economy will create benefits that are sustainable despite the fact that costs remain less with a greater assurance for increased profits. But, at the core of all this is an integrated approach that act's as pumping in the vital lifeblood.

Professor Peter Wood was the first to use the term "Green Accounting" almost more than twenty years ago. "Green Accounting" aims to help us all measure the true costs of our "operations" on the earth, and to track the sustainability of our way of life on this little green planet. "Green Accounting practices" can include reducing a company's consumption of natural resources. There are many companies that focus on using less paper, commonly known as "going paperless". They support their employees in telecommuting, which saves time, uses smaller quantities of natural resources, and produces less environmental pollution.

The United Nations Environmental Program is doing extensive work in this area, and provides many resources to assist countries in implementing and using a wide array of tools and analytical measures for engaging in national "Green Accounting."

Integration of environmental and economic accounting is known as Green Accounting and nowadays many countries are being urged to do "Green Accounting", in an effort to sustain our environment. The pressures are ever increasing on the environment and growing worldwide environmental awareness has emphasized the importance of having countries value and account for their various environmental and natural resources. Green Accounting is a means of formulating appropriate and sustainable economic, trade and social policies.

The present systems of national "accounts" rarely take account of the impacts of economic and trade activities on natural resources. Though traditional national accounts have included physical capital as an asset that depreciates over time, they ignored the depletion of natural resources. In order to provide accurate information to policy makers on national progress it is important to integrate the physical environment into national accounts.

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