The role of environmental accounting in sustainable development to conserve natural resources

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Doaa Mohammed Abdulrahman
Doaa Mohammed Abdulrahman


The issue of preserving the environment and the natural resources of the society is no longer a desirable thing that some facilities can be established to gain fame only, but it has become a global urgent necessity, and because of the importance of development and the environment, the United Nations held its conference on development and the environment in 1992, and as a result of this.

The conference most countries adopted sustainable development as a national goal. The debate now revolves around how the economic sectors can contributeOr business in achieving this goal, as it resulted in a number of principles such as sustainable business or corporate responsibilityEnvironmental, sustainable accounting. In response, companies, in particular Canadian companies, began to disclose a reportAnnual report on sustainable development, as it is convinced that this will increase the value of its shares and create what is known as shareholder valueShareholder value

Therefore, issues of environmental care, costs, revenues and benefits from it have come to the fore and are very importantAround the world because of its close relationship to human well-being, standard of living and advancement. This has led to an increased need for data. The current information provided by accounting to its annual financial statements is no longer sufficient for environmental purposes.

It requires accountants to focus on the potential economics and benefits that can be achieved from creating accounting for the sustainable environmentWhile building a comprehensive framework for environmental accounting stems from the reality of accountants' use of environmental accounting techniques to rationalize management decisions

The facility affecting the environment and rationalizing environmental costs, in addition to the interest of chartered accountants and external auditorsBy validating the environment-related information in the accounting statements.

Many scientific bodies have adopted the process of preparing guide documents to guide the role of accounting in supporting development

And environmental conservation, such as the Environmental Conservation Agency in the United States, the Association of Management Accountants of Canada and the organization

Environment Canada, the National Service for Environmental Quality in the United States and the United Nations / Development Division


The question is what is the appropriate behavior to embody the needs required to oversee progress towards sustainabilityIn fact, there are two broad responses to the problem of measuring sustainability, in terms of institutional sustainabilityThe companies improve their environmental performance, and the second response is leThe formal sustainability or non-sustainability of a project.ssons learned from national accounts that help define The first starts with the lack of clarity of the idea of ​​sustainable business due to the difficulty of identifying a set of practical indicators to help


The concept of sustainable development that focuses on preserving natural resources, and which requires knowledge and commitment to natural resource values ​​in the financial report, has increased participants' responsibility in the accounting aspect of the natural environment. In fact, natural resources were not given enough consideration in the early years of economic development despite their unique contribution to development.

Recently, there has been an increased interest in developing environmental and resource accounting in Iraq. The development of national resource accounting has focused on placing a monetary value on the known physical quantities of natural resources in order to obtain the value and wealth of natural capital. The natural resource inventory account is usually recorded in both physical and monetary terms.

Sustainability accounting includes the equity aspect of the environmental justice paradigm. This approach powerfully introduces the three-way minimum profit requirements for people and the environment in accounting jobs. In order to contribute to environmentally sustainable development, the company must meet all three conditions. Incorporating Profit Environment and People in Accounting integrates environmental externalities into an economic model based on incentives.[1]

The development of national accounts to form the basis of any environmentally sustainable development approach in most countries in the short to medium term shows us that it is not bright in the face of today's challenges.


[1]-The uncivilized behavior of man towards the environment has resulted in a large number of negative environmental influences limited it due to its expansion and simultaneous growth with the rapid development of the industry and the use of various sources of energy, which are:It has dangerous repercussions on society, and on life in general


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