Environmental accounting is a type of accounting that considers the impact of business activities on the environment. It involves assessing and reporting on the use of natural resources, such as water, land, and minerals, and the environmental costs associated with production processes.
Environmental accounting values natural resources by quantifying and incorporating the costs and benefits of using these resources into financial reporting. This can include factors such as the depletion of natural resources, the costs of pollution and waste disposal, and the benefits of ecosystem services. By integrating this information into financial statements, companies can make more informed decisions that take into account the environmental impacts of their operations.
