Environmental Accounting an Essential Component of Business Strategy

Environmental accounting is on an expansion path. With increasing social focus on the environment, accounting ?lls an expectation role, to measure environmental performance. The status of environmental awareness provides a dynamic for business reporting its environmental performance. Examining the integration of environmental policy with business policy is the focus of this research. The business ?rm’s strategy includes responding to capital and operating costs of pollution control equipment. This is caused by increasing public concerns over environmental issues, and by a recent government ledtrend to incentive based regulation. This paper describes the environmental component of the business strategy, producing the required performance reports and recognizing the multiple skills required to measure, compile andanalyze the requisite data.

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