At the center of environmental management accounting---as the name suggests---is the environment.
Environmental management accounting (EMA) focuses on identifying, collecting and analyzing information regarding costs and performance about the environment. It provides information within an organization for decision-making purposes.
Definition
EMA is a form of environmental accounting that takes environmental issues into consideration and uses the findings to make decisions. This type of accounting uses methods of finding information and analyzing it to become more environmentally friendly. By implementing EMA, businesses are able to discover problems within their organization that are non-compliant with laws. They are also able to find areas where improvement can take place.
Environmental Impact
This type of accounting monitors the effects of the environment and tries to control and manage harmful effects. This includes managing energy and material consumption and pollution of air and water. Many companies are choosing to go "green" in an attempt to save the environment.
Decision Making
Businesses use their findings and implement new policies and procedures to improve their company's environmental impact. They discover ways of reducing wasted products and becoming more energy efficient. If they cause pollutants, they look for ways to reduce or eliminate them.
