Environmental Accounting

Environmental accounting, in the context of management accounting, involves tracking and analyzing a company's environmental costs and impacts alongside its financial performance. It helps businesses understand how their operations affect the environment and how these impacts can influence profitability and sustainability. By integrating environmental factors into financial decision-making, companies can make more informed choices about resource use, reduce waste, comply with regulations, and enhance their reputation. Ultimately, it aims to balance economic success with environmental responsibility, promoting a more sustainable approach to business management.