Sustainibility Accounting

Abstract

Ecosphere in today’s era is evolving. Accounting as a discipline is further emerging. In traditional times merely, the known costs were recorded. The uncertainty there was considerably less, since the decisions were undertaken after considering project viability, minimum return on investment, risk proportion, project life etc. But today over modern times it is further suggestive that different aspects of economic, social and environmental should also be accounted. CO2 emissions, extractive and mining’s aftermath effects over the society, environment must also be considered. Costs here, therefore are absolutely unpredictive in nature. But organizations may aim for reduction in emissions or so. The approach therefore, in today’s era is beyond sourcing and effective utilization of finances. Such sort of accountability is yet voluntary discipline but several eminent names in industry have adhered to the norms, thereby trying hard to be eco-friendly. Organizations need to report if they pursue to record such sort of accounts. Hence, sustainable accounting is reported by various organizations. The present paper is an attempt to understand the underlying accounting terminology behind sustainability accounting. It considers the example of several different organizations to behold the same. The paper also elaborates about the different types of associated costs viz. direct and indirect. Steps to prepare the relevant accounts is further discussed. There exist several key considerations as well. There also exists GRI reporting principles, which are discussed in the paper. Paper also examines other reporting initiatives i.e. Responsible care, Towards Sustainable Mining, Equator Principles, Carbon Disclosure Project, International Integrated Reporting Council, United Nations Global Compact etc. Although sustainable reporting is voluntary in nature but many firms adhere to its norms in order to neutralise the impact over the society.