Environmental Risk Management and Environmental Management Accounting — Developing Linkages

Abstract

Frameworks for environmental management accounting refer to a number of tools that assist managers to address the environmental effects of their businesses. One area that has not received systematic attention is the link between environmental management accounting information and risk (and environmental risk) management. As a step in this direction the paper, first, reviews risk management and environmental risk management while developing five research questions related to disclosure of information by Australian Commonwealth public sector entities; second, details the research method and sample of public sector entities examined for the four-year period 1999–2002; third, considers the empirical results. These show an increasing level of disclosure and greater disclosure by non-budget entities. The paper draws conclusions and discusses possible future research opportunities in the context of links between environmental management accounting and environmental risk management.