Environmental Management Accounting: Assist in Quantifying Corporate Environmental Information Disclosure

Abstract

Environmental problem is a global issue which needs attention all over the world. India being a developing country where industrialization plays a prominent role in development of economy and at the same time causing environmental pollution, encouragescountry to move towards environmentally sustained economicgrowth. This made the business entity to adopting eco-friendly business behavior and such information should be disclosed accurately to the stakeholders. In India, Corporate Environmental Disclosure is a recent development andreports disclosed by the corporate are more of qualitative in nature which provides limited information of corporate environmental initiatives. In regarding to this matter, the study aims toexamine the issues related tocorporate environmental discloser by going through existing literatureand explore the concept of Environmental Management Accounting practices and techniques with rational of quantifying environmental information in the Corporate Environmental Reports. Environmental Management Accounting as a set of techniques to identify and allocate business environmental cost andexplaining the material effect ofsuch cost on thefinancial performance is viewed as an important practice that support disclosure of accurate, measurable and reliable corporate environmental aspects to the stakeholders because the credibility of the company depends uponthe quality of corporate environmental disclosure in present world, which emphasis more on sustained economic development.