I need help on What was once considered a laudable exercise and responsible action is now known formally as Sustainability and Environmental accounting.
Objective: Describe sustainability and how it can create business valueMindset: Value the importance of sustainability as a business valueCorporate businesses have come to understand that in addition to the pursuit of profit to create value for their stockholders, they must be aware that the present business climate requires compliance with their responsibility to assure their investors their decisions do not ignore the impact upon the world’s environment. What was once considered a laudable exercise and responsible action is now known formally as Sustainability and Environmental accounting.The creation of numerous non-governmental organizations (NGOs) in the latter years of the past century, focusing on the environmental impact of business decisions of both large and small has resulted in an almost world-wide realization that integration of sustainability in regular business decisions is now an imperative. In 2015, 175 countries (including the United States) executed a legal binding agreement, known as the Paris Agreement, to address legitimate concerns expressed by scientists about the adverse effects of waste disposal and the toxic effects of certain “greenhouse” gas emissions resulting from use of petrochemicals in industry. The external costs of landfill sites and the creation of waste that industries cause in production and movement of products has now created an imperative recognition for such producers.Sustainable product innovations including energy efficiencies and conversion of waste from materials and packaging have resulted in what is known as “eco efficiencies” which result in reduced overhead and service to environmental compliance, even resulting in some new revenue streams. The term “supply-chain assessment” refers to purchasing decisions being made to include environmental standards as well as cost-based standards.Both the United States and European countries have enacted more stringent regulations that companies doing business in either geographic zone must be in compliance, or face substantial penalties. The agency in the United States that is responsible for monitoring compliance is known as the Environmental Protection Agency (EPA).Due to the enforcement procedures in this area, corporate entities of a certain size in revenues and multiple locations are required to provide “Corporate Social Reports” to demonstrate compliance. External auditors and investors require these reports. “Environmental Management Accounting” appears to be a mainstay in today’s business climate and has international implications as well.Read Chapter 15. In your textbook.Prepare to discuss environmental accounting and sustainability. Ensure the following points are addressed.How should management accountants make the environmental cost more visible?What is the future of Environmental Management Accounting?Should these questions become part of Management Accounting courses?How does Sustainability create Business Value?300 words
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