Environmental Accounting in Managerial Practice: A Study of Awareness and Contemporary Trends

Abstract

Appropriate implementation and use of Environmental Accounting (EA) tools can induce major cost-saving opportunities for high energy-consuming businesses. The cost-saving opportunities include the use of energy-efficient equipment, a reduced rate of GHG emissions, and better accountability towards shareholders. This indicates a reflection of sustainable business operations that meet the social requirements of stakeholders. As Environmental Accounting (EA) performance influences environmental disclosures—including cost, performance indicators, and profitability trends—EA-based managerial awareness becomes a significant factor. This study with its secondary research and convenient sampling method finds out that gender (female) and education level (high) have a major positive impact on awareness. However, the implementation of environmental knowledge faces challenges such as resource, funding, and infrastructure gaps, especially in SMEs. Cost accounting standards also require some revisions.