Green Accounting

Green accounting is an extension of conventional accounting that incorporates environmental considerations into economic measurement and reporting. It examines the relationships between economic activity and the natural environment by identifying environmental costs, resource use, ecological impacts and related responsibilities. Green accounting may be applied within organisations to support management and reporting or at the national level to assess how economic development affects natural resources and environmental quality. Its main purpose is to provide a broader understanding of performance by showing that economic value cannot be evaluated independently of environmental sustainability. In this way, it supports more responsible decision-making, greater accountability and long-term planning.