Environmental Accounting Practices and Their Impact on Organizational Performance

Environmental accounting has gained significant importance in recent decades due to rising environmental concerns, climate change, depletion of natural resources, and increasing expectations from stakeholders regarding corporate environmental responsibility. Traditional accounting systems primarily focus on financial performance and often ignore environmental costs and benefits arising from business activities. Environmental accounting seeks to bridge this gap by identifying, measuring, and reporting environmental costs and impacts in both monetary and physical terms. This paper aims to examine the concept, objectives, importance, and scope of environmental accounting using secondary sources of data. It also provides a review of existing literature to understand the evolution and application of environmental accounting practices across industries. The study discusses the role of environmental accounting in promoting sustainable development, improving cost control, and enhancing transparency in corporate reporting. The findings indicate that environmental accounting not only supports informed decision-making but also strengthens corporate accountability and long-term sustainability. The paper concludes that environmental accounting should be integrated into mainstream accounting systems to support sustainable business practices.