GREEN ACCOUNTING

ALKA PANDEY

Assistant Professor

Faculty of Commerce and Management

Kalinga University

Environmental accounting, often known as green accounting, is characterized as an important instrument for studying the impact of the environment in the economy because the two have a strong correlation. Environmental accounting is the preparation of accounts that show the costs associated with environmental sustainability in the ordinary course of business. Clean-up or restoration expenses, environmental penalties, charges, and taxes, the procurement of pollution control devices, and waste management expenses are all examples of expenditures. Environmental accounting creates, evaluates, and applies both financial and non-financial data to help management. The primary objective of green accounting is to assist organizations in understanding and managing the possible trade involving standard economic aims and environmental needs. This also enhances the amount of critical information accessible for understanding policy issues, which is extremely vital considering how frequently key elements of data are ignored. Environmental accounting encourages a prosperous economy for companies by integrating green public procurement and green development and research. Carbon emitters’ penalties and rewards (like tax benefits, pollution licenses, and so on) are indeed important components of this style of accounting. Green accounting adoption is problematic in India due to a dearth of knowledge among participants about the added expenses and consequences of compliance. Corporations often focus on intrinsic expenses that have a visible impact on the bottom line, while externalities such as environmental expenses, costs to society, and so on are sometimes overlooked. Businesses should examine external influences in order to use limited resources wisely and efficiently. Environmental accounting is now required for companies to develop techniques of green factors for the future and the present. This will additionally assist in determining pollution limitations, allowed emissions, the allowable maximum usage nonrenewable resources, and reliance on renewable energy sources. The establishment of a green accounting system is critical for the advancement of an organization’s environmental efficiency. It is very important in fulfilling Corporate Social Responsibility.