Green accounting

Green accounting/ carbon accounting : 

Green accounting/ carbon accounting Jobin: 1021219 Rochak: 1021256 Saurabh: 1021231 Tanu: 1021234

Green or carbon accounting : 

Green or carbon accounting What exactly is it?? Green Accounting, or carbon accounting, is an area of accounting that undertakes the measure and tracking of carbon dioxide equivalent levels that will not be emitted into our atmosphere due to the Kyoto Treaty. In simple words Green accounting is kind of managerial accounting tool that tries to factor the environmental costs within the financial outcome of the operations of a business. Current scenario.. There are approximately 3,000 + companies globally who have taken to the practice of documenting and reporting GHG emissions. This process is very similar to how businesses use financial reports to judge operational performances. This new area of expertise can be recognized as Enterprise Carbon Accounting (ECA), and many companies already have in place expert accountants who use GHG emissions reporting to oversee their sustainability performance. The Future!! It is anticipated that greenhouse gas emission (GHG) reporting will triple within the next two years, and that the number of companies utilizing a GHG software product will quadruple. 'Enterprise Carbon Accounting: An Analysis of Organizational-Level Greenhouse Gas (GHG) Reporting and a Review of Emerging GHG Software Products,' is used by companies who are interested in tracking and/or reporting GHG emissions as a guide to get them going.

Green or carbon accounting : 

Green or carbon accounting Conventional national accounts largely ignores: New or newly observed scarcities of natural resources, which threaten to undermine the sustainability of economic performance and growth, and depletion of natural capital- soils, fisheries, forest. Environmental degradation as an ‘external’ (social) cost of economic activity. Many non-market goods not in GDP. Further critique refers to a possible distortion from accounting environmental protection expenditures as an increase in national income, despite the fact that such ‘defensive expenditure’ tends to maintain, rather than increase, the welfare of society.

Green or carbon accounting : 

Green or carbon accounting Opportunities in Green Accounting Green accounting is a career choice with a big impact. Instead of figuring out how the corporate giants of the world can make impressive profits, an green accountant analyzes external and internal costs of what happens to the environment. Once an green accountant has identified an environmental cost, then this information can be used by companies or government to calculate carbon credits etc. Green accounting goes beyond whistle-blowing and government-sponsored studies. Many private companies hire environmental accountants to evaluate the costs of cutting pollution, including adding in benefits of tax relief for following government regulations or tax credits for utilizing government-approved equipment or methods. More the number of green cost saved or carbon credit saved, more will be the relief from government.

Green or carbon accounting : 

Green or carbon accounting Green or Environmental Accountants Green accountants are held responsible to identify and track green costs often times working with site, research and development, and production managers when planning their budgets. Green accountants help management recognize that the tax benefits, rebates and lower costs of being environmentally friendly add up to a real bottom-line reward for doing the right thing. Green accountants also helps companies to focus on the environment they live in and use it for better profits, with concern to their environment. Decrease green cost and increase profits.

Green or carbon accounting : 

Green or carbon accounting Green accounting: Uses Improving environmental performance, Controlling costs, Investing in “cleaner” technologies, Developing “greener” processes, and products, and Forming decisions related to their business activities.

Green or carbon accounting : 

Green or carbon accounting Limitations of Green Accounting.. There is no standard accounting method. Comparison Between two firms or countries is not possible if method of accounting is different. It mainly considers cost internal to the company and excludes cost to society. It is a long term process therefore to draw conclusion is not easy. The cost incurred towards staff and trained employees is high. It cannot be done by financial accountants. The cost for its tools and applications initially is high and even the time taken to learn or train an employee on that is also hectic.

Green or carbon accounting : 

Green or carbon accounting Adoption of Green accounting: Reason Many environmental costs can be significantly reduced or eliminated. Environmental costs (and, thus, potential cost savings) may be obscured in overhead accounts or otherwise overlooked. Environmental costs can be offset by generating revenues. Benefits can be received by the government, if proper green costing done. Provides a major hype to business and helps them in proper and efficient utilisation of resources. Environmentally conscious companies have already discovered that they can generate business strategies to help them reduce their carbon footprint, minimize their environmental impact, make the best use of natural resources, become more energy efficient, reduce costs, and exhibit social responsibility Environmental management accounting thus represents a combined approach which provides for the transition of data from financial accounting and cost accounting to increase material efficiency, reduce environmental impact and risk, and reduce costs of environmental protection.

Green or carbon accounting : 

Green or carbon accounting Need of Green Accounting: PRACTICALLY For developing countries like India it’s a twin problem about saving environment and economic development. As the countries economy is not very strong, hence it should be improved first. A study by world bank estimated that about `34000 crores were lost by India due to Environmental Damage i.e. about 9.5 % of GDP. Companies like AT&T are practically implementing green accounting. And they say that: “identifying and measuring AT&T's costs of environmental materials and activities, and using this information for environmental management decisions” Coz to develop and use nonpolluting technologies, minimize wastes, increase recycling, design products and processes with environmental impacts as a critical factor, and raise all employees' awareness of environmental responsibilities.

Green or carbon accounting : 

Green or carbon accounting Various Laws Related to Environmental Protection Water (Prevention and Control of pollution) act, 1974. The Air (Prevention and control of pollution) act, 1981 The Environment (Protection) Act, 1986. The Forest (Conservation) Act, 1980. Hazardous Waste (Management & Handling) Rules,1989

Green or carbon accounting : 

Green or carbon accounting Thanku!!