The financial reporting of environmental matters
The case of the metalworking and basic metallurgy sector
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Concern for the environment is no longer the exclusive preserve of non-governmental organizations and environmental groups. This concern has become part of companies' development policies. In this sense, they are seeking to adopt the best performance in environmental and social matters, in order to better articulate the benefits and risks of their activities, in response to the new demands of society. The biggest challenge facing companies in environmental matters is the need to make economic growth compatible with environmental preservation. As a social science, accounting is influenced by so...
Concern for the environment is no longer the exclusive preserve of non-governmental organizations and environmental groups. This concern has become part of companies' development policies. In this sense, they are seeking to adopt the best performance in environmental and social matters, in order to better articulate the benefits and risks of their activities, in response to the new demands of society. The biggest challenge facing companies in environmental matters is the need to make economic growth compatible with environmental preservation. As a social science, accounting is influenced by social, political and economic changes, so it tends to keep pace with the evolution of society. Users are increasingly demanding information of various kinds, including environmental financial information. As the financial statements did not reflect companies' social and environmental behavior in accounting terms, they were forced to develop and disclose additional information. In recent years, European and national regulations have been introduced to standardize this accounting treatment.
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