The relevance of environmental accounting. An implementation proposal in the automotive sector

Abstract

The awareness of society about environmental problems has led companies to engage in corporate social responsibility (CSR) strategies worldwide. CSR strategies imply the inclusion of the environmental dimension in decision-making processes. Non-financial reporting and environmental accounting are fundamental in providing information on companies’ CSR goals, performance, and strategies. Environmental accounting is a strategic and relevant tool in dealing with environmental issues. In this context, it is important to have comparable information for companies’ stakeholders, public opinion, and society. In this book chapter, we analyse the evolution of environmental accounting over the years and the process of implementation of an environmental accounting system in an automotive company. We also develop a proposal for the implementation of an environmental accounting system with the main procedures to be followed. Our results highlight the need of knowing in detail the specificities of the productive activity of the company, the human resources, and the information system. The incorporation of environmental issues in the companies’ strategy and their reporting through new formats, provides valuable information on companies’ environmental awareness and commitment.