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With the world in jeopardy of environmental destruction, the only people who could save the environment may be the CPAs.
At the Nagoya Summit, the brilliant minds and leaders of nations have come to meet and discuss solutions to the biodiversity crisis. It’s been a given fact that massive ecosystems are getting destroyed and numerous species are going extinct. Though, if we’re to be honest, the scientists and national leaders are at loss of what to do with this impending crisis.
The Accountants, however, already have a plan.
Accounting the Environment
Eco-accounting has been a repeatedly suggested solution to this crisis. This new, experimental accounting method integrates “environmental services” – carbon sequestration, water cycle regulation, climate maintenance, habitat provision, and the like – straight into corporate books. We always take into account Land and Depreciation of Assets in the books, but never the forest that was once on that lot or the impact of its loss on the animals. Eco-accounting wants to promote environmental sustainability by classifying the environment as a measurable, concrete and comparable resource for corporate bosses and national leaders to see on the books.
Classifying the environment in Eco-accounting has its consequences if done badly. It would view the forests, the mountains, the animals, and other natural resources as profitable commodities that can be bought and sold to the highest bidder. It could even imply that vital resources such as clean water and fresh air could be turned into products for sale, making them inaccessible to the poor and the marginalized. But, if Eco-accounting succeeds as the practice that it is intended to be, the results could be wondrous. We could finally be able to convince small business owners up to public and private leaders to integrate environmental sustainability in their general affairs.
Putting to Practice
Peter Barker and the World Business Council for Sustainable Development (WBCSD) are taking steps in making Eco-accounting the standard for all accounting procedures. They have started a program to mold environmental sustainability into a concrete account title for all kinds of financial statements. They also began convening with CEOs and accountants about finance, reporting, and the possibility of creating a world-class training for accountants on environmental sustainability.
Though Barker and WBCSD couldn’t do this alone. They would need the help of Accountants to support their cause and resolve this biodiversity crisis.
You might be thinking: ‘So, what can the simple, average accountant do? How can we even help?’
More so than you think.
Accountants have mastered the necessary knowledge to solve this crisis: Smart allocation of resources. Who checks if the expenses of the conservation projects are enough? Who oversees the capital of the project? It’s the Accountants. It’s the Accountants who manage resources to ensure the future of the company in the long run. This makes them the most qualified persons to pioneer better resource allocation and sustainable economic planning that would benefit our future. If only they’ll take the challenge.
So, will you?
Contributed by: Allison Julianne Macasaet
She is a freelance writer on the side, a student of international relations on the other. Interests include fantasy books, international relations, and lifestyle.Posted