ABSTRACT
This chapter addresses three questions: What is environment-related management accounting? Why should it be undertaken? and Who should do it? It then identifies relevant sources of financial and non-financial information and discusses the ways in which existing management accounting techniques can be modified to take account of environmental issues. 'Environmental accounting' has been used to cover both national and firm-level accounting activities, the processing of both financial and non-financial information, and the calculation and use of monetised external damage costs as well as those that are internal to the firm. Green taxes are being introduced on many types of raw materials, emissions, wastes and products at the end of their lives. Environmental factors can be significant in determining the ultimate returns from new investments. The chapter provides an appendix on definitions of environmental costs and benefits. It also presents an overview of the key concepts discussed in this book.
