Mode of Paper Presentation - Oral

Name of Section- 17) Commerce , Law and Management

Title of the Abstract/Paper

A study of Environmental Accounting in India: with special reference to

BPCL and ONGC.
Author’s Name(s) & Affiliation- Pinto Maxwell and Naik Raikar Vishwa .
Affiliation: Post Graduate Department of Commerce (M.Com),Shree Damodar College of Commerce and Economics, Margao,
Goa, INDIA.

Mail id: pintomaxwell@gmail.com, vishwa.raiker@gmail.com, and

Mobile No. 917768833112, 919130600013

ABSTRACT

Industrialization on one hand contributes major part for the economic development of a country while on other
hand it leads environmental deterioration. It has become clear today that economic development must be
environmentally sustainable. Traditional accounting systems do not account for the costs arising out of the use of
environmental and natural resources. In the past decade, there has been a huge demand on financial and economic
data about environment and natural resources. As a possible solution to the limitations of traditional accounting
system an environmental accounting has emerged as a new concept. Environmental Accounting aims at
incorporating both economic and environmental information. It can be conducted at the corporate level or at the
national economy level. However in India there is no common style for environmental accounting/reporting at
corporate level. In this paper, a theoretical groundwork of environmental accounting and its reporting of two
petroleum companies is studied. This research is based on secondary data collected from internet. After the proper
research we believe that the scenario of Environmental accounting practices has not been transformed. The
Environmental Policy of both the units show that they have taken full efforts for the better protection of environment
but on the other hand the research findings doesn't shows the ecological cost , liability , and ecological expenditure.

Keywords- Environment, Environmental Accounting, corporate, reporting, Environmental

policy
INTRODUCTION
Industrialization contributes major part for the economic development and prosperity of a country. On one hand it
provides employment opportunities and wealth generation while on other hand it leads environmental deterioration.
In the world till the late 19th century Industries were neither clean nor green, and gave little consideration to the
environmental impact of their business.Later, gradually the awareness grew about environment and the public and
industry alike began to see the potential for major environmental problems. This realization brought
environmentalism into the world of business. Today businesses face a ladder of environmental regulations and
industries from manufacturing to technology must now consider their ecologic and social impact. Environmental and
social accounting grew out of an imperative to balance a company’s financial health with its broader obligations.
Corporate environmental reporting & accounting is almost two decades old now, recent national and international
surveys have identified growth in the number of companies reporting on internet

Environmental issues have unfavorably affected most of the business transactions and promoted companies to
recognize ecological and social sustainability practices as part of their broader goals. Such initiatives need to be
recognized to control the environmental and sustainability gap and the ever growing concern for worldwide
warming and environmental degradation calls for combined effort of corporations, government and other
stakeholders in tackling the problem.

India is one among the pioneer of developing countries to practice more of voluntary green performance reporting.
Environmental friendly programs and practices like conservation of non-renewable sources’ of energy, greening,
recovery and rehabilitation, a forestation, top soil management, noise abatement and vibration analysis, general
aesthetic beauty etc. has resulted in better competence and enhanced environmental performance.

Rising pressures on the environment and increasing environmental consciousness have generated the need to
account for the various interactions between all sectors of the economy and the environment. As we all know that
Conventional national accounts concentrate on the measurement of economic performance and growth as reflected
in market activity. For an extreme complete assessment of the sustainability of growth and expansion, the scope and
coverage of economic accounting need to be broadened to include the use of non-marketed natural assets and losses
in income-generation resulting from the depletion and degradation of natural capital. However, Conventional
accounts do not concern for reporting economic activities effects on the environment. So, the execution of
ecological disclosure practice can help companies and other stakeholders to reduce the cost and reduce pollution
correspondingly. Environmental accounting, as a subject has gained a significance across the world due to the
improved concern for worldwide warming and environmental degradation.
A lot of companies in India willingly started reporting environment related information in the financial statements to
show their support toward environmental issues
According to the “United States Environmental Protection Agency”, an important function of environmental
accounting is to bring environmental costs to the attention of corporate stakeholders who may be able and motivated
to identify ways of reducing or avoiding those costs, while at the same time, improving the environmental quality.
The implementation of environmental accounting can help achieve the objective of corporations and other
stakeholders in reducing the costs and decreasing the pollution respectively.

OBJECTIVES
1. To understand the concept of environmental accounting.
2. To make brief review of Government rules and regulations relating to environment accounting in India
3. To make an evaluation of environmental accounting practices including disclosure practices of Bharat
Petroleum Company Limited & Oil & Natural Gas Company Limited.

REVIEW OF LITERATURE

 Savita Ranga and Rahul Garg (2014) in their research paper Legal Framework for Environmental
Accounting in India has described various forms of environmental accounting and how over the years
Reporting and voluntary environmental accounting has changed and Corporate bodies are flourishing for
socially responsible reporting the way unlike how the traditional organizations thought on their corporate
social responsibility (CSR) as nothing but a minimum prescribed reporting requirement, for them
compulsory reporting would be just a miniscule form of representing their huge effort towards determining
themselves as a socially responsible entity. The paper also describes in brief the Legal Framework for
Environmental Accounting in India.
 Ramesh, L (2013) in his research outline A Study of Environmental Accounting Practices in selected
Indian Companies has said how Environmental Accounting needs to work as a tool to measure the
economic efficiency of environmental conservation activities and the environmental efficiency of business
activities of companies as a whole. Business enterprises are facing the challenge of determining their true
profits which are environmentally sustainable ones. The benefits of undertaking an environmental
accounting initiative include the identification and greater awareness of environment related costs
providing the opportunity to find ways to reduce or avoid these costs, whilst also improving environmental
performance.

 Alok Kumar Pramanik and Nikhil Chandra Shil and Bhagaban Das (2007) in their research paper
Environmental accounting and reporting with special reference to India have segmented Environmental
accounting in two broad perspectives namely legislative issue and conceptual analysis wherein legislative
issue defines issues regarding environmental accounting such as Identification of environmental costs,
capitalization of costs, identification of environmental liabilities and measurement of liabilities and that no
 accounting standard has been issued for accounting treatment of these specific problem, conceptual
analysis says how broad the area of environment accounting is and what it involves.

 Dr. Minimol M.C and Dr. Makesh K.G(2014) in their research paper Green Accounting And Reporting
Practices Among Indian Corporates have defined the major environmental parameters reported by Indian
Corporates as part of their Environmental reporting practice and the extent to which Indian Corporates
practice, voluntary environmental reporting with regard to the environmental parameters identified. They
have developed a model in their study which specifies six aspects to be covered in environmental
accounting in order to measure the ultimate environmental performance of the organisation, the aim of
which is to present a novel view of the different activities to be undertaken by organizations to facilitate
environmental accounting and reporting.

 Dr. Preeti Malik and Dr. Alka Mittal (2015) in their research paper A Study of Green Accounting Practices
in India has stressed on the fact that Green accounting or environmental accounting is a new challenge of
accounting system. They concentrated exploring the concept of green accounting, its practices and
reporting in India.

RESEARCH METHODOLOGY
This research has extensively used secondary data for analysis. The secondary data collected through internet. The
environmental accounting policies and practices of two Indian petroleum companies namely Bharat Petroleum
Company Limited (BPCL) and Oil and Natural Gas Limited (ONGC) are studied and findings are analyzed. The
focus was to understand the sector wise practices of corporate environmental reporting. Initial survey was conducted
by going through the official websites of two selected petroleum companies. This was followed up by an analysis of
Annual Reports, environmental/sustainability reports and other relevant reports of selected companies for three
financial from 2012-13 to 2014-15.

ENVIRONMENTAL ACCOUNTING

Environmental Accounting is a subset of accounting, its target being to incorporate both economic and
environmental information. It can be conducted at the corporate level or at the level of a national economy.
Environmental accounting is a field that identifies resource use, measures and communicates costs of a company’s
or national economic impact on the environment. Costs include costs to clean up or remediate contaminated sites,
environmental fines, penalties and taxes, purchase of pollution prevention technologies and waste management
costs.

An environmental accounting system consists of environmentally differentiated conventional accounting and

ecological accounting. Environmentally differentiated accounting measures effects of the natural environment on a
company in monetary terms. Ecological accounting measures the influence a company has on the environment. It is
the practice of incorporating principles of environmental management and conservation into reporting practices and
cost/benefit analyses. It has been tinted that gross domestic product (GDP) ignores the environment and hence
decision makers require a revised model that incorporates green accounting. In recent years environmental pollution
has become so acute and the stakeholder’s awareness to the issue becomes so serious that environmental accounting
becomes a strong branch of accounting. Environmental accounting allows a business to see the impact of
ecologically sustainable practices in everything from their supply chain to facility expansion. It allows accountants
to report on the economic impact of those decisions to stakeholders so as to allow for proactive decision making
about processes that simultaneously meet environmental regulations while adding to the bottom line.

Environmental accounting provides a framework for organizing information on the status, use, and value of natural
resources and environmental assets—including fisheries and forest accounts, among others—as well as expenditures
on environmental protection and resource management. The latest categorization of environmental accounts by the
international community include four types of accounts— natural resource asset accounts, pollution and material
physical flow accounts, monetary and hybrid accounts, and environmentally-adjusted macroeconomic aggregates.
Importantly, environmental accounting provides a way to link environmental data with the economic data contained
in a country’s natural area.

Environmental accounts can provide policymakers with ecological indicators and descriptive statistics to monitor the
environment’s contribution to the economy and the economy’s impact on the environment. In addition,
environmental accounting can potentially serve as a tool for strategic planning and policy analysis to identify the
implications of different regulations, taxes, and consumption patterns on environmental sustainability and paths to
sustainable development of specific economic activities.

Environmental accounting is organized in three sub-disciplines: global, national, and corporate environmental
accounting, respectively.

1) Global environmental accounting- It is an accounting methodology that deals with areas consisting of
energetic, ecology and economics at a worldwide level.
2) National environmental accounting –It is an accounting approach that deals with economics at a country's
level.
3) Corporate environmental accounting-It focuses on the cost structure and environmental performance of a
company. Corporate environmental accounting can be further sub-divided into environmental management
accounting and environmental financial accounting.
LEGAL FRAMEWORK FOR ENVIRONMENTAL ACCOUNTING IN
INDIA

While industrial licensing has been abolished for all practical purposes, environmental clearance from various
Government authorities has now taken the centre stage. With increasing global concern over the protection of the
environment, India too has set up a Union Ministry of Environment, Forest and Climate Change set up in 1985.
Headquartered in New Delhi, the objective of this ministry was co-coordination among the states and the various
ministries, the environmental protection and antipollution measures. Necessary legislation has also been passed. The
various laws relevant to environmental protection are as under:
(a) Directly related to environment protection:
• Water (Prevention and Control of Pollution) Act, 1974.
• Water (Prevention and Control of Pollution) Cess Act, 1977.
• The Air (Prevention and Control of Pollution) Act, 1981.
• The Forest (Conservation) Act, 1980.
• The Environment (Protection) Act, 1986.
(b) Indirectly related to environment protection:
• Constitutional provision (Article 51A).
• The Factories Act, 1948. • Hazardous Waste (Management & Handling) Rules, 1989.
• Public Liability Insurance Act, 1991.
• Motor Vehicle Act, 1991.
• Indian Fisheries Act, 1987.
• Merchant of shipping Act, 1958.
• Indian Port Act.
• Indian Penal Code.
• The National Environment Tribunal Act, 1995.
It is important to note that all new projects require environment clearance. This clearance concerns both the Union
Ministry of Environment and Forests and the corresponding State Govt. department of environment. Guidelines
have been issued and all such projects are expected to obtain environmental and anti-pollution clearance before they
are actually set up. A Central Pollution Control Board (CPCB) has also been set up as a statutory organization under
the Ministry of Environment, Forest and Climate Change. The organization was set up on 22 nd September 1974
under the Water (Prevention and Control of Pollution) Act, 1974. CPCB is also entrusted with the powers and
functions under the Air (Prevention and Control of Pollution) Act, 1981. Wherever cases of violating of standards of
water or air pollution have been detected, show cause notices have been issued to industrial units and all such units
are being kept under constant surveillance.
FINDINGS AND ANALYSIS

For the purpose of this study we considered two petroleum companies namely BPCL and ONGC

Bharat Petroleum Company Limited

Type Public
Traded as BSE:500547
NSE:BPCL
Industry Oil and gas
Headquarters Mumbai, Maharashtra, India
Key people D Rajkumar
(Chairman & MD)
Products Petroleum, natural gas, and other petrochemicals
Revenue ₹240,367 crore (US$36 billion) (2015)
Operating income ₹9,777 crore (US$1.5 billion) (2015)
Net income ₹5,082 crore (US$760 million) (2015)
Total assets ₹44,866 crore (US$6.7 billion) (2015)
Owner Government of India
Number of employees 13,535 (2016)
Website www.bharatpetroleum.com

While discoveries were being made and industries expanded, John D. Rockefeller and his business associates
acquired control over numerous refineries and pipelines. With these acquisitions under their belt, they went on to
form the Standard Oil Trust – a giant in its own right. Observing this and to counter the growing significance of
Standard Oil, three largest rivals - Royal Dutch, Shell and Rothschild’s - came together to form a single organisation
called Asiatic Petroleum to market petroleum products in South Asia. In 1928, Asiatic Petroleum (India) joined
hands with the Burmah Oil Company, an active producer, refiner and distributor of petroleum products, particularly
in Indian and Burmese markets to form the Burmah-Shell Oil Storage and Distributing Company of India Limited.
Burmah Shell began its operations with the import and marketing of Kerosene and soon proved itself to be a pioneer
in more ways than one. The company imported oil products in bulk and transported them in 4-gallon and 1-gallon
tins all over India. The company also took up the challenge of reaching out to people in remote villages to ensure
every home was supplied with kerosene. Thus, the development and promotion of efficient kerosene-burning
appliances for lighting and cooking became an important part of its kerosene selling activity. With the advent of
motor cars, came canned Petrol to be subsequently followed by fuel service stations. In the 1930s, retail sale points
were built with driveways set away from the road. As more such service stations began to appear, they soon became
an accepted part of road infrastructure and development. Post war, Burmah Shell established efficient and up-to-date
fuel service and filling stations to give its customers the highest possible standard of service facilities.

Table 1: Performance highlights of BPCL ( Amount in Cr)

YEAR 2012-13 2013-14 2014-15
Sales Turnover 240,115.75 2,60,060.53 2,38,086.90
Profit before Tax 4,035.69 5,948.98 7,415.51
Profit after Tax 2,642.90 4,060.88 5,084.51
Earnings Per Share 36.55 56.16 70.32
Source: Company’s annual Reports.

OIL AND NATURAL GAS LIMITED

Type Public Sector Undertaking

Trade as NSE:ONGC
BSE:500312
BSE SENSEX Constituent
CNX Nifty Constituent
Industry Oil and Gas
Founded 14 August 1956
Headquarters Tel Bhavan, Dehradun, Uttarakhand, India
Key people Dinesh Kumar Sarraf
(Chairman & MD)
Products Petroleum, natural gas, and other petrochemicals
Revenue ₹139,364.35 crore (US$21 billion) (2016)
Profit ₹14,300.93 crore (US$2.1 billion) (2016)
Total equity ₹4,277.76 crore (US$640 million)
Owner Government of India
Number of employees 33,560 (1st Aug 2015)
Divisions MRPL
ONGC Videsh Ltd.
Website http://www.ongcindia.com

ONGC was founded on 14 August 1956 by Government of India, which currently holds a 68.94% equity stake. It is
involved in exploring for and exploiting hydrocarbons in 26 sedimentary basins of India, and owns and operates
over 11,000 kilometres of pipelines in the country. Its international subsidiary ONGC Videsh currently has projects
in 17 countries. ONGC has discovered 6 of the 7 commercially producing Indian Basins, in the last 50 years, adding
over 7.1 billion tonnes of In-place Oil & Gas volume of hydrocarbons in Indian basins. Against a global decline of
production from matured fields, its Reserve Replacement Ratio for between 2005 and 2013, has been more than
one. During FY 2012–13, ONGC had to share the highest ever under-recovery of INR 494.2 million (an increase of
INR 49.6 million over the previous financial year) towards the under-recoveries of Oil Marketing Companies
(IOC, BPCL and HPCL).
Oil and Natural Gas Corporation Ltd. (ONGC) has been playing an important role to meet the energy requirements
of the country to meet the rapidly growing demand for petroleum products in the country. To meet growing energy
requirements a New Exploration Licensing Policy (NELP) has been formulated by the Government of India. The
Government of India gives emphasis for the exploration activity. At present, India's demand for petroleum products
contributes 77% of India's crude oil production and 81% of India's natural gas production. Established on 14 August
1956 by Indian government which currently owns 74.14% equity stake in this company. ONGC is one of the largest
publicly traded companies in India.

TABLE 2: Performance highlights of ONGC (unit million)

YEAR 2012-13 2013-14 2014-15
Sales Turnover 1,624,031.73 1,744,770.56 1,608,897.49
Profit before tax 367,421.65 394,134.06 273,703.65
Profit after tax 239,902.63 266,530.20 176,729.55
Earnings per share 28.31 30.98 21.43
Source: Company’s annual Reports.

ENVIRONMENTAL POLICY OF SAMPLE UNITS

BPCL Environmental policy:

BPCL are well aware that given the nature of our business they have large impact on the environment and its
resources. Preserving the natural resources and ensuring minimum damage during the course of their business is of
prime importance to them. They have put in place number of policies and systems to mitigate their negative impact
on the environment at all their operating locations. The R&D department is not only looking for just new and
innovative products but also innovate methods of producing them such that the environmental impact is reduced.
Being a part of the oil and gas sector, they require a large amount of energy in conducting their business. Therefore
they recognize their role towards improving their energy efficiency, thereby reducing their greenhouse gas emission
and mitigating climate change. There is an opportunity to explore and invest in energy efficient technologies which
provide them the leadership position and a competitive edge in the market. Energy conservation efforts received
continuous focus, both in terms of improvement in operations/maintenance as well as development of new projects.
 Continuous monitoring of fuel consumption and hydrocarbon loss is undertaken using sophisticated instruments and
data acquisition system. Elaborate and systematic energy accounting and Management Information Systems are
important features of the Refinery operations. BPCL refineries have been committed to conserve energy at all levels,
through sustained efforts. Mumbai Refinery has a very robust and effective Energy Management System (EnMS)
accredited with ISO50001:2011 certification and is one of the first refineries to achieve this landmark certification in
India. This helps immensely in saving the natural resources and protect environment.

Major Environmental Protection measures implemented are:

• Planted additional 4000 saplings in the Refinery area.
• Additional rainwater harvesting facilities from DHDS Unit Control Room roof top area.
• Engaged M/s Plan Earth, a registered NGO, working for environmental protection, for disposal of waste
paper varieties such as shredded paper, A4 sized paper, Carton Boxes, Old Magazines etc. and also clean
plastic from our premises. This is sent straight for pulping to ITC Ltd under the WOW (Wealth Out of
Waste) Project. Around 43 tons of waste paper was recycled through this mission saving around 700 trees.
• Road side beautification by planting saplings.
• Public awareness builds up: Various message boards carrying environmental messages are displayed all
around the refinery to invite the attention of the public towards environmental matters.
• Received Kerala State Pollution Control Board Award for Excellence position among Very Large
Industries for substantial and sustained efforts in Pollution Control and for initiatives in environment
protection in 2014. This is the eighth time in a row Kochi refinery is getting recognized by KSPCB for its
pollution control efforts.
• The Refinery was also awarded the Corporate Excellence Award for Green Initiatives by the Kerala
management Association for environment management efforts during 2014.

ONGC Environmental policy:

ONGC group has policy which is focused on compliance to law of the land, sustainable development, minimization
of waste generation, minimizing the risk of environmental pollution and awareness programmes for the employees
and concerned parties. ONGC group has efficient air water, soil quality management system. All installations have
established management systems based on ISO 14001 and OHSAS 18001.

• The EMS of the individual installation is periodically audited by Corporate/Sectoral HSE and reviewed by top
management for continual improvement.
• To tackle emergency and disastrous situation, Emergency Response Plan has been prepared at Installation level and
there is Disaster Management Plan at Asset level.
• Mock drills are conducted regularly for different emergency situations for enhancing effectiveness of response plan.
• ONGC has adequate resources to handle oil spills upto 700 Tons. For combating oil spills of higher magnitude
ONGC has obtained membership of International agency i.e M/S OSRL, UK The membership is continually
renewed annually to cover our offshore operations from the threat of major oil spill. ONGC is also joining the pool
of oil companies to set up Tier-I facility at Mumbai Port Trust for combating oil pollution
• As an innovative solution, bio-remediation technology has been extensively and effectively used for treating oil
contaminated soil within installations. ONGC has associated with TERI for implementation of this technology and
Oil Zappers technology developed by them has been applied for bio-remediation oil contaminated soil and oily
sludge.
• ONGC has demonstrated its commitment for environmental protection by undertaking extensive mangrove
plantation for marine environment protection in Gandhar area of Gujarat. Mangroves in itself are an ecosystem and
harbour numerous species and also serve as breeding place for marine organisms.
• At present Fire Suppression System in offshore platforms is based on utilizing halon which is considered to be a risk
to ozone layer. In accordance with International guidelines and GoI’s commitment, ONGC has initiated phasing out
Halon Fire Suppression system by 2010 and replacing it with environmental friendly substitute.
• ONGC, keeping up with its commitment to promote and develop renewable energy resources, and producing 50
MW of energy through wind energy at Kutch, Gujarat. ONGC is the first PSU to initiate a renewable energy project
of this magnitude.
• In addition to plantation in ONGC operational areas extensive tree plantation job has been entrusted to Uttranchal
Bamboo and Fiber Development Board (UBFDB), an autonomous body of State Government of Uttrakhand, in
ecosensitive areas of Upper Himalayas complementing the objective of National Action Plan of Govt. of India.
3,00,000 ringal plants have been planted in 120 areas of upper Himalayan region.

ENVIRONMENTAL PERFORMANCE INDICATORS

TABLE 3- Environmental Performance Indicators BPCL
INDICATORS 2012-13 2013-14 2014-15
KOCHI MUMBAI KOCHI MUMBAI KOCHI MUMBAI
Direct energy 25.2 million 36.6 million 26.38 30.6 million 31.273 25.06
Consumption giga joules giga joules million giga giga joules million giga million giga
joules joules joules
Indirect energy 191.7 130.07 282.5 704.47 182.8 266.21
Consumption million giga million giga million giga million giga million giga million giga
joules joules joules joules joules joules
Water Withdrawal/ reused 3.11 million KL 3.69 million KL 3.15 million KL
(refineries)
Green House Gas 183.13 thousand tonnes 176.26 thousand tonnes 159.35 thousand tonnes
Emission
Source: http:// www.bharatpetroleum.com
 TABLE 3: Environmental indicators of ONGC
INDICATORS 2012-13 2013-14 2014-15
Total Primary Energy 1.16 terra joules 1.87 terra joules 1.93 terra joules
Consumption
Water Usage 25.79 billion liters 26.00 billion liters 24.57 billion liters
Green House Gas 9.11 million tonnes 11.71 million tonnes 12.02 million
Emission tonnes.
Source: http:// www.ONGCindia.com

Green house gas emission:

As far as BPCL is concerned, its green house gas emission was decreasing by the year. As we can see in the year
2012-13 it had the highest emission of 183.13 thousand tonnes, while it decreased to 176.26 thousand tonnes in the
year 2013-14 and furthermore to 159.35 thousand tonnes in the year 2014-15. On the other hand the green house gas
emission of ONGC increased each year. In the year 2012-13 it was 9.11 million tonnes, which increased to 11.71
million tonnes in 2013-14 and further increased to 12.02 million tonnes in on 2014-15. Therefore we can say that the
rate of green house gas emission by ONGC was volatile to the three consequent years but on the contrary, the rate of
emission of green house gas for BPCL was decreasing continuously

Direct and indirect energy consumption:

With respect to BPCL and its kochi plant, the direct energy consumption s found to have been increasing each year,
from 25.2 million giga joules in 2012-13 to 31.2713 in 2014-15. In the Mumbai refinery as we can see the direct
energy consumption was the highest in the year 2012-13 however was on a decline in the consequent years. From
36.6 million giga joules in 2012-13 to 30.6 million giga joules in 2013-14 to 25.6 million giga joules in 2014-15.
The indirect energy consumption of both the refineries increased in 203-14 and decreased in 2014-15, thus we can
say the indirect energy consumption is volatile to the three consequent years.

As far as ONGC is concerned the total primary energy consumption increased over the years. It was at its extreme
high in 2014-15 at 1.93 terra joules, which was an increase from 1.16 terra joules in 2012-13 and 1.87 terra joules in
2013-14.

Water consumption:

As far as BPCL is concerned they have used the water which was already used previously by them, recycling and
saving on further usage of water, on the other hand ONGC has used fresh water each year, so in this manner BPCL
is saving the environment sources by recycling the reused water but ONGC is not saving the environmental sources
because of continuously utilization of fresh water.
LIMITATIONS
1) The study is based on only two petroleum companies findings of which are not enough to generalise.
2) The study is completely based on secondary data.
3) No statistical methods/tools/techniques have been used for analysing findings.

CONCLUSION
Environmental accounting is in preface stage in India and whatever shows in the accounts in this regard is more or less
compliance of relevant rules and regulation in the Act. Environmental indicators should be calculated for evaluation
of environmental aspects and the same should be disclosed properly in annual account. There is a lack of
environmental reporting guidelines.
From this research it can be concluded that both the companies follow diverse reporting practices on the internet
viz., stand alone environmental reporting (satellite accounts) or reporting along with the Annual/Financial Reports,
or Sustainability Reporting (which include the economic, environmental and social issues). The reports of both
companies reviewed in this study, did not explain how Indian companies decide on what issues to be addressed or
left out, in its environmental report. It is left to the discretion of readers to draw their own conclusions. A slight
difference can be seen in the environmental policy of both the companies, for instance the energy consumption of
BPCL is classified into direct and indirect energy consumption, whereas that of ONGC has just been shown as
energy consumption, so one wouldn’t know the amount of direct and indirect energy consumption of ONGC. ONGC
on the other hand emits more green house gases then BPCL. And finally we can say that Indian companies have not
yet developed a holistic approach to environmental accounting.
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