Environmental Management Accounting

Question 1

what is environmental management accounting?

Answer 1

the management of environmental and economic performance via management accounting systems and practices that focus on both physical information on the flow of energy, water materials and wastes, as well as monetary information on related costs, earnings and savings

Question 2

why is environmental management important?

Answer 2

• society aware of carbon footprint
• organisations are incorporating more sustainable objectives hence need the systems and metrics in place
• environmental costs can be large for some companies
• increasing environmental regulations

Question 3

what are the 6 capitals of value?

Answer 3

1. Financial
2. Intellectual
3. Human
4. Natural
5. Manufactured
6. Social and relationship