Article Details

Corporate Environmental Accounting | Original Article

Ritika .*, in Journal of Advances and Scholarly Researches in Allied Education | Multidisciplinary Academic Research

ABSTRACT:

Globally, the environment is becoming a far more criticaleconomic, social, and political issue. Promoting economic development and preserving the environment are two issues that the world is now dealing with. A sustainable development at this point requires thorough assessment of environmental effects on economic development. It has been noted that numerous efforts have been made to provide a framework for combining national income and environmental data to compute economic development. Additionally, none of these initiatives address the microeconomic component of environmental data, which is the relationship between a particular firm and the environment. To identify the sustainability gap at the micro level, an accounting of the relationship between the firm and the environment is necessary. The emergence of corporation level environmental accounting and its attendant issues are both addressed in this paper. 15 sample Indian businesses are being considered for the study while reporting and accounting procedures are taken into consideration. The annual reports for 15 sample firms' 2021– 2022 accounting seasons were examined for figures. These companies were picked from a list of the top 50 corporations listed on the National Stock Exchange.The report offers a thorough overview of recent research on several environmental accounting aspects of a sample companies and how they relate to corporate sustainability. In terms of profitability, financial leverage, industry type, and the social and moral responsibility of environmental accounting, we found that there was a significant discrepancy. According to a study, environmental reporting is now included in annual reporting in India, which is widely accepted as a result of the increase in stakeholder environmental awareness. The bulk of Indian companies report annually on their environmental initiatives. Based on these fascinating findings, it was suggested that standard-setters should give in to the persistent pleas and suggestions made by eminent academics for guidelines pertaining to the formation of Financial Reporting Standards on environmental accounting (EA) in order to improve corporate sustainability.