Book

Description

In recent year, the growing recognition that sustainable practices and environmental responsibility are essential for the long-term success of businesses. There is a growing demand from consumers, investors, and regulators for businesses to measure and report their environmental impact, reduce their carbon footprint, and demonstrate their commitment to sustainability so green accounting provides businesses with a framework for measuring and reporting on their environmental impact and for incorporating the environmental and social costs and benefits of their activities into decision-making processes. As research on green sectors under the Sri Lankan context is very limited, so there is a timely need to investigate the impact of green practices on the financial performance of a business. Therefore, this research study investigates the impact of green accounting on firm financial performance of materials and food, beverage, & tobacco sector companies listed on the Colombo Stock Exchange. Environmental accounting refers to the process of incorporating environmental costs and benefits into financial accounting and reporting. It is a tool used by organizations to measure and report the impact of their operations on the environment, as well as to track the cost of environmental damage caused by their activities. While environmental accounting systems now form part of industrial decision making in first world countries, there is a lack of similar systems in South Asia. Green accounting has a close relationship with sustainable development goals (SDGs). Green accounting can help to align economic incentives with the SDGs by incorporating the environmental and social costs and benefits of economic activities into decision-making processes. This can help to promote more sustainable practices and reduce the negative environmental and social impact of economic activities.