The contribution of green accounting to achieving sustainable development

Abstract

Green accounting is the product of the interaction between the environment and the economy, with the aim of establishing the principles of sustainable development, as environmental economic accounting is an expansion of the limits of assets in traditional national accounting to achieve sustainable development. The fundamental issue in the development of green accounting is to identify the factors that should be used to correct the gross domestic product, including environmental damage and resource depletion.

       The interest in the issue of green accounting and the associated estimate of the green gross domestic product (GGDP) derives mainly from the concept of sustainable development referred to for the first time in the report of the Commission Braundtland in the year 1987. The issue of sustainable development is usually studied through three approaches, the first of which is the economic, social and environmental * As for the second approach, which is vital, it relies on the argument that the economic and social systems are subordinate to the global environment, and it follows this argument that the sustainability of the economic and social atmosphere follows environmental sustainability. The approach is the concept of capital from economics and then expands this definition to include many considerations appropriate to the sustainability of human development, which is that sustainable development is closely linked to the concept of income.

      The phenomenon of environmental pollution has received increasing attention recently, especially in light of the industrial progress witnessed by the contemporary world and the diversity of sources of pollution. environmental life.

      The application of cost accounting suffices to count and calculate the cost elements associated with the company without taking into account the costs of preserving the environment from pollution, which leads to the emergence of unreal profits, and this weakens confidence in the accounting information provided.

      That is, it is not sufficient for the purposes of the environment, and here the need for green accounting emerges, which means the comprehensiveness and integration of the accounting and economic measurement and disclosure process of activities and programs that affect the environment and which are practiced by companies to meet the needs of different parties in society.