Green accounting in Colombia: a case study of the mining sector

Environment, Development and Sustainability, 2022

Current accounting systems assume a purely financial approach, without including environmental information, such as environmental costs and companies' expenses. On the one hand, this study proposes a framework that considers the environmental impact of firms within their accounting system, the Green Accounting System (GAS). On the other hand, and in the context of developing countries, Colombia carried out an exploratory study. With a sample of 150 Colombian industrial and commercial companies, this research revealed that 100% of them had not yet implemented environmental practices within the accounting system. Therefore, this research would be useful not only for academia, but also for practitioners and governments. As GAS would contribute to traceability in the quantification of environmental accounting, it would simultaneously generate a movement toward cleaner production that would increase environmental quality.

Green accounting is a path for expansion. By using this as a tool, many of the environmental costs can be reduced by proper decision making and also by implementing greener technologies. This paper's main objective is to understand what green accounting or green reporting means and also its importance. It also aims to find out how important it is for a company to implement green accounting and keep a track of what is receiving from the environment and what it is giving back in return. This would help in the efficient use of resources and it would also help in reducing pollution to an extent. Green accounting plays a major role in the corporate social responsibility (CSR) of a firm. Through primary data collection in this study, we also try to understand people's perspectives towards green accounting. Though is it a difficult task to implement green accounting in each and every organization, an attempt is made to show how green accounting helps in environmental sustainability. The organizations must take initiative to implement green accounting in all the levels of the organization. The government must take strict actions is the environmental norms are not followed and also penalties must be imposed for it. The responsibility towards the environment has become one of the most important factors in the corporate social responsibility of a firm.

International Journal of Advanced Academic Research, 2024

This study undertakes a comprehensive exploration of Green Accounting Practices, focusing on a comparative analysis of two key components: Environmental Accounting and Natural Resource Accounting, within the realm of business operations. As the global business landscape increasingly recognizes the importance of environmental sustainability, understanding the nuances of these accounting practices becomes imperative. Environmental Accounting represents a paradigm shift in how businesses account for the costs and benefits associated with economic activities. The integration of environmental data into financial systems allows for a more accurate evaluation of the true cost of production and consumption. On the other hand, Natural Resource Accounting focuses specifically on quantifying the depletion and degradation of essential resources like water, minerals, forests, and biodiversity. Together, these accounting practices aim to provide businesses with a comprehensive toolkit for measuring, managing, and mitigating their environmental impacts. Through a comparative lens, this study seeks to delineate the similarities and distinctions between Environmental Accounting and Natural Resource Accounting in the context of business operations. It delves into the methodologies, metrics, and tools employed by businesses to account for their environmental footprints and natural resource utilization. By identifying best practices and potential areas for improvement, the research aims to contribute valuable insights to businesses, policymakers, and academics, fostering a deeper understanding of how environmental considerations are integrated into financial decision-making processes. The findings of this study have implications for enhancing corporate transparency, sustainability strategies, and responsible resource management, thereby promoting a more environmentally conscious and economically sustainable approach to business operations.Keywords: Green Accounting, Environmental, Natural, Sustainability, Resource Accounting.

Zenodo (CERN European Organization for Nuclear Research), 2022

The research aims mainly at scientific rooting by identifying the role of green management accounting in improving the quality of accounting information and improving the quality of products in industrial companies, and to answer questions and test hypotheses, the researcher used the descriptive approach, literature and previous studies to obtain theoretical information related to the research topic and in order to know the role of management accounting Green in improving the quality of information that affects the quality of products through the optimal utilization of resources, which will reduce environmental pollution and environmental risks that are generated as a result of producing industrial products, as well as adding information that helps reduce the cost of manufactured products through cost accounting information that helps reduce cost and resource utilization To optimize access to clean environmentally friendly products. The results showed that defining environmental activities in industrial companies contributes to improving the quality of accounting information, which reflected positively on financial reports, achieving product quality and achieving economic, social and environmental development. The research recommended a practical application and more attention to the application of environmental green management accounting in industrial companies to contribute in a manner. It is clear about the responsibilities to be assumed in the field of environmental protection and society.

Binus Business Review

This study aims to prove the effect of implemention green accounting on improving environmental performance in mining and energy sector companies in Indonesia. In this study, the implementation of green accounting was taken from the green accounting concept that contained quantitative and qualitative information that must be reported by the company. This is projected in the form of the use of recycled raw materials, the use of renewable energy, the allocation of green costs, and the allocation of CSR funds. Environmental performance is measured using environmental impact dimensions with the TRI (Toxic Releases Index) indicator to calculate the overall B3 waste (Hazardous and Toxic Materials). The observation period of this study is 3 years, from 2014 to 2016. The object of this research is mining and energy companies in Indonesia which are registered in the GRI (Global Reporting Initiative) database. The data used are secondary data obtained from continuous reports with the GRI-G4 r...

Open Journal of Accounting, 2013

In the past, environmental issues were often ignored by both, large companies and small medium enterprises. However, accounting for the environment or the acronym "Green accounting" is receiving increased attention in the recent times. Many companies, particularly small medium enterprises (SMEs) are now interested in being "green", as many investors place a high value on environmental responsibility. Many environmental costs can be significantly reduced or eliminated as a result of business decisions, ranging from operational and housekeeping changes, to investment in greener process technology to redesign processes or products. Industry and the green movement are tilting towards consensus on the pivotal concept of sustainable development. Better natural resource and green accounts would provide valuable insights into the interaction between the environment and the economy. However, implementing green accounting in organization such as SMEs in Malaysia, results in resistance or ignored due to some reasons such as lack of awareness, lack of ethical education, etc. This paper highlights the issues surrounding the firms green accounting in financial reporting. The key goal of this paper is to outline a set of green accounting measures that are to be addressed in environmental management accounting system of a firm.

Jurnal Akuntansi, 2018

This study aims to detail environmental costs based on the relevance and accuracy of the information, and formulate a green accounting reporting model based on the characteristics of the company. Qualitative research uses a constructivism critical approach with PT Semen Tonasa in South Sulawesi as an analysis unit. Data collection is done by interview techniques and other secondary data support. The results showed that the company classifies environmental costs based on its activities and does not specify environmental costs, so the information is hidden and managers have difficulty controlling environmental costs. Environmental related costs are classified into environmental prevention costs, environmental detection costs, internal environmental failure costs, external environmental failure costs, and research and development costs. Presentation of environmental costs and disclosure of environmental activities contribute to maximum environmental performance. The formulation of the ...

Trans stellar Journals, 2021

Green accounting is a form of accounting that sets out to comprise the factor called environmental costs into the financial outcome of operations. It has been debated that the gross domestic product (GDP) disregard the environment and consequently the policymakers require a revised model that assimilates green accounting. The predominant objective of green accounting is to aid the business in comprehending and manage the prospective tradeoff between environmental goals and traditional economic aims. Green accounting requires several synthesizing cognizance in sociology, behavioral science, biology, engineering. It also deals with management and accounting problems confined to social and environmental ramifications, rules, constraints, economically feasible production of energies, safety etc. The elemental theory confined to green accounting is internalizing the environmental costs within the organizations; this is subject to the attempt to find solutions to the decreasing negative consequences of process and ventures on the environment. The crux of green accounting relies on handling the problems in line with the social environment and its possible impact in achieving environmental and sustainable development in any nation and thus influencing an organization's behavior in tackling issues related to environment and social responsibilities.

International Journal of Business and Management, 2012

This article is located within a broad body of literature concerned with environmental accounting and critical of the current role of accounting. The main purpose of this paper is to analyze the available literature based on the Environmental accounting (green accounting) and sustainability and to understand how it has been studied and evaluated by different authors who are working in this area. Current literature focuses on environmental sustainability and lacks quantitative ways to make capital budgeting decisions. The study suggests that there should be wide empirical studies in this area so that, through the environmental accounting system we can analyze the environmental performance of each companies or organizations. A possible conceptual model for environmental accounting and reporting by Michael John Jones is also suggested in this article. The study concludes that Environment Management Accounting can likely support decision making in companies towards better environmental performance today, through structured cost assessment that support effective decision making, and future proofed product mixes, strategies and investment.

midra.uni-miskolc.hu

Today, corporate sustainability is one of the greatest challenges facing companies. Therefore, this study aims to show how accounting, as the language of business and the source of information, can meet the criteria of sustainability. This article starts out by analysing the different approaches to corporate sustainability, then it proposes the reinterpretation of the most important accounting principle, the 'going concern' principle. In the following section it outlines the characteristics of accounting from the point of view of sustainability. Finally, it proposes ways of transforming green accounting, both in name and content, into sustainability accounting.