Explain what accountants mean by environmental accounting and illustrate the importance of the role of environmental performance indicators.

... Explain what accountants mean by environmental accounting and illustrate the importance of the role of environmental performance indicators. Gray, (2001) States that, 'to what extent can the privileged minority of the worlds population continue to enjoy life of rising luxury whilst the planets eco-systems collapse.' This comment is perfectly introduces the concept of environmental accounting which takes into account the effect on the environment of the organisations actions, and therefore adjust there financial figures to reflect this, as Emery (2002) states, most organisations have an environmental impact of some kind, therefore environmental accounting has become evidently essential in contemporary society. The roots of environmental accounting come from the concept of corporate social responsibility, which emerged in the 1960s, Glautier (2001). Firms are encouraged to take account and address the impacts, which they have on their external environment. Ecological and social externalities are the most common aspect of these, these are not

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