What is the concept of environmental accounting?

What is the concept of environmental accounting?

The concept of environmental accounting refers to the practice of incorporating environmental costs and benefits into the financial accounts of an organization or a country. It involves quantifying and valuing the environmental impacts of economic activities, such as pollution, resource depletion, and ecosystem degradation. Environmental accounting aims to provide a more comprehensive and accurate assessment of the true costs and benefits of economic activities, taking into account both the financial and environmental aspects. This information can then be used to inform decision-making, policy formulation, and resource allocation towards more sustainable and environmentally-friendly practices.