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Reviving Green With Accounting in the Era of Sustainability

In the era of ‘Reviving Green', sustainability is no longer a luxury; it has become a global necessity. The late 1990s saw the evolving concept of triple bottom line. The growing importance of the environmental agenda that ‘sustainability' had been mainly focused upon to that point led to the inclusion of the environment as one of the defining factors of ‘sustainability'. The new paradigm in the third millennium puts business in the driving seat. Consequently, their role and responsibility towards the environment is manifold. The tradeoff between economic growth and the environmental costs has become one of the major challenges for businesses. This chapter examines the traditional accounting practiced by organizations. The premise of internalizing environmental costs in the investment decision making is highlighted. The costs and benefits that arise through the environment protection and depletion of the existing capital have been held forth.