Green products and

Green Accounting

Dr. Sudhindra Bhat

Contents Green Products

Different types of Green products

Green accounting

Goal of green accounting

Scale and scope

forms of environmental accounting

System of national account

Rational for environmental accounting

the environmental cost and types of costs

The advantage

Environmental analysis

Needs of green accounting

Limitation of green accounting

Conclusion

References

Going Green………

Going green is good to Mother Nature. It’s good to conserve energy and help save the dying planet. Yes, the planet is slowly dying because of our deeds.

We don’t seem to care about all things we do, but keep on doing it. It’s only in the last couple of decades, the awareness about why the awareness about why we have to go green and conserve energy to save the earth from any damage.

We have been polluting the atmosphere like never before and cutting trees that are extremely important for ecological balance. If things are continue to go awry, scientists predict that in a few decades there will be a catastrophic change in climate which may lead to warmer climate, unpredictable weather etc.

we have to go green and conserve energy to save the earth from any damage.

To this end many companies are launching green products to their customers in a bid to promote energy conservation and environmentalism.

It’s good to produce, market and use renewable products so that they are not wasted once they are used. Renewable products can be recycled and used many times.

Advantages of Using Green product… The advantage of using green

products don’t only lie on their renewability; they also provide more value to the buyer. Renewable products are often cheap to produce and hence cheaper in the market.

They don’t pose any threat to the environment and not poisonous. Most of the green products are bio-degradable meaning, they will naturally get degraded and won’t just sit on land field for thousands of years.

Types of Green Home Products? Green home products that can

be used throughout one's home to boost efficiency, protect the environment, or offer eco-friendly alternatives to products that can be harmful to people or the environment.

This includes cleaning products made of natural materials, appliances or items such as light bulbs designed to be more efficient, water-saving faucets, toilets, or showerheads, or even flooring made from sustainably harvested woods such as bamboo. These are just a few of the many different types of green home products that can be incorporated into one's lifestyle.

Cleaning products are often the first step to selecting more green home products. This can range from everything from toilet cleaners and laundry detergent to personal hygiene items such as shampoo. Many of these green home products are made from natural, organic materials or vegetable-based cleaners.

They are often free of dyes, perfumes, and bleach, which can be harmful to both people and animals, as well as products like sulfates, phosphates, ammonia, or chlorine which can be harmful to waterways as well as plant and animal life. It is important to keep in mind that this is an oversimplified definition of green home products used for cleaning as well as their harmful effects, and it is a topic that can be researched much more thoroughly.

Different Green Products…… Green Homes

Green Building

Green Products

Eco Friendly

Recycled Products

Beauty Products

Eco Products

Hair Products

Cleaning Products

Green Building Products

Eco Products

Eco Green

Reit Investment

Eco Friendly Material

These materials have gone through the composting process, they will yield rich planting material for an eco-friendly garden. This also reduces the need to purchase topsoil and fertilizer.

Expert organizations such as the United States Green Building Coalition conduct assessments of eco-friendly housing construction. The U.S. Green Building Coalition awards Leadership in Energy and Environmental Design (LEED) certifications to architects, engineers and other construction professionals and firms.

Green Homes Green remodeling and are designing accessories, such as

pendulum lighting, natural bamboo screens and recycled plastic furniture. In using eco-friendly natural materials, green home accessories are becoming very popular and not just because they are ecologically sound, but also because they offer appealing designs and can even save homeowners money.

Green homes are ones that are energy efficient and earth friendly. Green home communities are being built throughout the United States, United Kingdom, Asia, Australia and Europe in an effort to lessen the carbon footprint humans leave behind.

Green accounting Is important tools for understanding the role played by the natural

environment in the economic

It provide data which high light the both the contribution of natural resources to economic wellbeing and the cost imposed by pollution and resources degradation

It describe an effort to incorporate environmental benefit and costs into economic decision making

History of green accounting The term green accounting has

been enounced since the 1980s and known as a management tools.

The conventional SNA was first started in the USA in 1942.

The present situation of green accounting and its most evolved from, sustainable accounting, has been receiving continues attention in the academic accounting literature in the early 1990s

the concept started almost three decades ago in the early 1970s with important contributions.

Goal of green accounting

Is to increases the amount of relevant for those who need or can use it.

Relevant data depend on the scale and scope of coverage

Scale and scope Applicable at different scale of use and scope of coverage

1. Application at an individual process level, a system, a product, a facility or an entire company level.

2. Coverage may include specific costs, avoidable costs, future costs and social external costs.

Decision on a scale and scope of application significantly impact ability to excess and measure cost.

1.Environment Management Accounting EMA is the identification, collection ,estimation, analysis, internal reporting,

and use of materials and energy flow information, environmental cost information, and other cost information for both conventional and environmental decision-making within an organization.

For companies that have the goals of saving money, especially environmental costs,

and reducing environmental impacts, EMA provides essential information for meeting those goals

Environmental Management Accounting (EMA): Segment Environmental Accounting: to select an investment activity

and project.

Eco balance Environmental Accounting: to support PDCA for

sustainable environmental management activities.

Corporate Environmental Accounting ; to inform the public of relevant information compiled in accordance with the environmental

accounting.

2. Environmental financial accounting(EFA)

Financial accounting with a particular focus on reporting environmental liability costs and other significant environment costs.

3. Environmental national accounting (ENA)

National level accounting with a particular focus on national resources stocks and externality costs etc.

System of national account (SNA) SNA is the set of account which government compile routinely to

track the activity of their economic.

SNA data are used to calculate major economic indicators GDP,GNP, saving rate and trade balance figure.

the system of NA view the relationship between the environmental and the economy free economic perspective only.

Standard National Accounts

(SNA) framework NDP = C + I – D + X – M

Where:

NDP = Net Domestic Product

C = final Consumption

I = Investment (fixed capital)

D = Depreciation

X = Exports

M = Imports

Misleadingly used as measure of welfare: welfare not proportionate to consumption of produced goods

Rational for environmental accounting GDP and NDP have been key

indicator in the economic policy making

Use as a measure of economic progress of a country and standard of living.

These traditional measure of economic activity are now recognize as a inadequate as they can’t accurately measure the contribution of environment and the impact of the economic activities on environment

Environmental cost Major challenge in application of environmental accounting a

management tool is identifying relevant cost

Cost definition determine by intended use of data.

Types of environment costs 1. Conventional

2. Potentially hidden

Regulatory

Upfront and backend

Voluntary

3 Contingent

4 Image

The advantage Pollution preventing

Designing environment & green accounting improvement

Projection, cost, estimating life cycle in the environment

Product circulation administration from environmental prospective

Supply process from environmental perspective

The product or produces liability

Environmental-centered managements system

Assessing , testing and reporting performance of environmental activities.

This project aims to re-calibrate the

existing annual State Domestic Product

(“SDP”) accounts to incorporate changes

in each state’s stock of natural capital

(minerals, arable land, forests &

freshwater) and investment in human

capital (education, health, and pollution

control). This information will be a useful

frame of reference for future dialogues

on public policy and it is expected to

sharpen the focus on preserving

environmental capital and growing

human capital.

Green Accounting Project for India - GAISP

Environmental analysis Environmental analysis elements

forms of impact on the env. By means of

Action taken as a result of the env. analysis

Product services activities

-Discharged rivers

-Used underground water discharge by sewage

-Gas emission in the atm.

-vibration noise

-other pollution factors.

-controlling impact on environment

-adapting to legal requirement

Technologies -quantity, products nature, its environment sensitivity

-created/natural/possible

-incident or accident.

-controlling the impact on the environment.

-current situation

-Product life cycle.

-Studying product

-adapting to legal

requirements, according to the legislation in the filed

Need of green accounting Practically for developing countries like India it’s a twin problem

about saving environmental and economic developing.

As the country economy is not very strong, hence it should be improve first.

A study by world bank estimated the about 34,000 crores were lost by India due to environmental damage

Company like AT&T are practically implementing green accounting

Limitation of green accounting There is no standard accounting method

comparison between two firms or countries is not possible if method of accounting is different.

It mainly considers cost internal to the company and excludes cost to society.

Input for EA is not easily available because costs and benefits relevant to the environment are not easily measurable.

It mainly consider the cost internal to the company and excludes cost to society.

The cost for its tools and application initially is high.

Total economic valuation A new term TEV has been added to the lexicon of recourses

economic.

Non use value: are independent of people’s result use of the resource ,

under it fall intrinsic worth and heritage values. These are categorically

classified as

1. Existence value : represent the value which receives no direct benefits.

2. Option value : refers to the willingness of the people .

3. Bequest value: refers to an individual’s willingness to pay for preservation of

a resources for future generation.

TEV= UV + NUV

= DUV+IUV+OV+NUV

Conclusion Green accounting takes into

consideration environmental

resources and changes in them, and

integrates the result with the system

of national account so as provide a

valuable information base for

planning and formulating policy for

the integrated sustainable

development and growth of the

nation.

Actually, unless common people of

world are not made aware towards

environment safety, development of

this regard is a little bit of doubtful.

Let us use Green products in every

use of life!!

Let us go green!!!!!!

Thank you