Green accounting a mode of sustenance

Green accounting a mode of sustenance

Argha Mondal

As the 21st Century continues to be an

age of progress and prosperity, more and more emphasis is being laid on nature and the Environment that surrounds us. In the last few years, there has been a growing awareness of the need to discover the art of living in harmony with nature.

Green accounting is a type of accounting that attempts to factor environmental costs into the financial results of operations. Green accounting measures the impact of human activity on the earth's ecological systems and resources and not just the financial effects of such activity. The origins of the accountancy profession in the 19th Century were within the context of the age of empire and boundless economic expansion. The latter part of the 20th Century brought an awareness of environmental limits to economic activity and has led to a proliferation of accounting methodologies designed to measure the impact of human activity on the earth's ecological systems and resources. Such methodologies can be collectively described as green accounting. It is also called resource accounting or integrated accounting. Environmental accounting is also a subject of interest for business, both as a way to assess impacts-costs and benefits of projects-and to define new accounting standards to assess their long term performance and risks.