The spelling of the phrase "environmental accounting" is quite straight forward. It starts with the vowel sound /ɪ/ followed by the consonant cluster /n v/. The next syllable consists of the consonant sound /r/ along with the long vowel sound /aɪ/. The final syllable contains the consonants /k n t/) followed by the vowel sound /ɪŋ/. The word is typically pronounced as /ɪn.vrʌɪ.ən.məntəl əˈkaʊntɪŋ/ and is used to describe the practice of incorporating the environmental impact of businesses into their financial reports.
Environmental accounting is a specialized form of accounting that focuses on the assessment and reporting of the environmental impact of organizations and their activities. It involves quantifying the costs and benefits associated with environmental factors such as pollution, natural resource depletion, and environmental conservation measures. The goal of environmental accounting is to provide a comprehensive understanding of the environmental effects caused by an organization's operations and the financial implications of these impacts.
This type of accounting includes various techniques and methodologies to measure and evaluate environmental costs and benefits. It incorporates both conventional financial accounting principles and additional environmental assessment tools. Environmental accounting encompasses activities such as tracking resource usage, estimating the costs of waste generation, evaluating the financial implications of reducing greenhouse gas emissions, and estimating the value of ecosystem services.
Environmental accounting aims to enhance the transparency and accountability of organizations in relation to their environmental performance. It provides essential information that can be used by management, investors, regulators, and other stakeholders to make informed decisions regarding environmental management and resource allocation. The reporting of environmental accounting data can include financial statements, sustainability reports, and environmental impact assessments.
Overall, environmental accounting serves as a valuable tool in promoting sustainable development and responsible business practices by encouraging organizations to internalize the environmental costs and benefits associated with their operations. It helps organizations better understand and address their environmental impact, leading to improved decision-making processes and increased environmental responsibility.
The word "environmental accounting" combines the terms "environmental" and "accounting".
- "Environmental" is derived from the Latin word "ambiens" meaning "surrounding" or "encircling". It is formed from the combination of the prefix "ambi-" meaning "around" or "both" and the verb "ire" meaning "to go". Over time, "ambiens" evolved into "environment" in Middle English and eventually took on the modern meaning of the natural world and surroundings.
- "Accounting" is derived from the Old French word "acompter" meaning "to count, reckon". This Old French term is derived from the Latin word "computare" meaning "to sum up" or "to reckon together", which is formed from the combination of the prefix "com-" meaning "together" and "putare" meaning "to think" or "to count".