What is a cost and what is a benefit when a company improves its environmental performance? How can businesses reflect this in their accounts? These are among the questions that the Institute of Chartered Accountants will attempt to answer through an innovative new research project jointly funded by the Commonwealth and the Victorian State Government.
Over $160,000 has been made available for the project, which will provide Australian business with a tangible demonstration of the financial benefits of improving their environmental performance.
Announced by the Federal Minister for the Environment and Heritage, Dr David Kemp, and the Victorian Minister for the Environment and Conservation, Sherryl Garbutt, Australia’s first Environmental Management Accounting Project for business will involve a diverse range of companies and accounting consultancies in five case studies. The companies range from a small manufacturing firm, a large financial services company and Australia’s largest telco to an export-oriented agribusiness and a private girls’ school.
The results will be used by the Institute, EPA Victoria and Environment Australia to increase business’ understanding and appreciation of the environmental cost and revenue implications of their operations.
The case studies are:
AMP, Telstra, The Michel Group, Methodist Ladies College, Perth and Cormack Maufacturing.