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GREEN ACCOUNTING

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 Abstract

This paper discloses about green accounting and its practice in Bangladesh. Green accounting is

a recent phenomenon which is interrelated to environmental info and ecological eco-system. It

reflects the CSR (Corporate Social Responsibility), environmental cost and reporting, corporate

governance side by side the natural resources and environmental sound management and

administrative system in any country around the world. It focuses on improving green accounting

practices and environmental quality. At the present time the developed world is concerned about

the state of green accounting. It is a significant tool used for understanding the normal

environment’s part in the economy & provides adequate data on the contribution of natural

resources on the economy. At the same time, they also concern towards the effect of pollution

on natural resources, degradation increases cost. In the developed countries, green accounting

is practiced extensively but in Developing Countries like Bangladesh, “Green accounting concept

is present” but its practice is not significant enough. Green expenditures are not calculated here

and no step is taken to introduce green GDP (Gross Domestic Product), EDP (Eco-Domestic

Product) besides the traditional GDP. So, the contribution of the green accounting in the

economy is overlooked. Green accounting practice has some limitations in Bangladesh. Green

indicators like green GDP, EDP, green capital, greening the product, may be introduced besides

the traditional computation. For this both the government and private sectors must come

forward and work together to improve the existing green accounting practice in Bangladesh.

Keywords: Green accounting, Sustainable development, Environmental cost, Green capital

1
Table of Contents
CHAPTER 1: INTRODUCTION ................................................................................................ 04
1.1 Title of the Study ............................................................................................................... 05
1.2 Background of the Study ................................................................................................... 05
1.3 Statement of the Problem ................................................................................................... 07
1.4 Research Questions ............................................................................................................ 08
1.5 Research Objectives ........................................................................................................... 08
1.5.1. Broad Objective.............................................................................................................. 08
1.5.2. Specific Objectives ........................................................................................................ 08
1.6 Significance of the Study ................................................................................................... 09
1.7 Scope of the Study.............................................................................................................. 09
CHAPTER 2: LITERATURE REVIEW ..................................................................................... 11
2.1 Introduction ........................................................................................................................ 12
2.2 Green Accounting .............................................................................................................. 12
2.3 Review of Related Empirical Studies- Green Accounting ................................................ 13
2.4 Conceptual Framework ...................................................................................................... 16
2.6 Development of Hypothesis ............................................................................................... 16
CHAPTER 3: RESEARCH METHODOLOGY ......................................................................... 17
3.1 Introduction ........................................................................................................................ 18
3.2 Research Methods .............................................................................................................. 18
3.3 Research Design ................................................................................................................. 19
3.4 Research Approach ............................................................................................................ 19
3.5 Research source and Nature of data ................................................................................... 20
3.6 Method of data collection .................................................................................................. 20
3.8 Method of Data Analysis and Statistical Tools .................................................................. 23
3.8.1 Scopus ............................................................................................................................. 23
3.8.2 VOSviewer ...................................................................................................................... 23
CHAPTER 4: FINDINGS, ANALYSIS & DISCUSSION ......................................................... 24
4.1 Introduction ........................................................................................................................ 25
4.2 Authors of Green Accounting ............................................................................................ 25
4.3 Keywords of Green Accounting ........................................................................................ 28

2
 4.4 Country research more about Green Accounting ............................................................... 32
CHAPTER 5: RECOMMENDATIONS & CONCLUSION ....................................................... 36
5.1 Recommendation ............................................................................................................... 37
5.2 Conclusion ......................................................................................................................... 39
5.3 Limitations of the study...................................................................................................... 40
CHAPTER 6: REFERENCES ..................................................................................................... 41
6.1 References .......................................................................................................................... 42

LIST OF FIGURES
Figure 1: Flow diagram of article selection process ................................................................ 22

LIST OF TABLES
Table 1: Authors Name ............................................................................................................ 25
Table 2: Keywords ................................................................................................................... 29
Table 3: Country Names .......................................................................................................... 33

ABBREVIATIONS AND ACRONYMS

GDP Gross Domestic Product

SD Sustainable Development

EDP Environment adjusted Domestic Products

EPI Environmental Performance Index

GAAP Generally Accepted Accounting Principles

CSR Corporate Social Responsibility

MNC Multi-National Corporation

GHG Green House Gases

3
INTRODUCTION

4
1.1 Title of the study – “Green Accounting”

1.2 Background of the study

Green accounting is a branch of Accounting, attempts to take into attention the ecological expenses

in the calculation of operating profits of an enterprise. “It takes into consideration not only the

value of natural resources” but also the charge of pollution and reduction of natural properties and

emphasizes more about the quality of economic growth in terms of sustainable development.

Administration and associations to identify not fair the necessity to defend the atmosphere but also

to make awareness between the crowds about the reputation of the Atmosphere. Just as Ecological

awareness nowadays is rising at a step like no supplementary; subsequently the essential to

interpretation for the happiness of the Atmosphere.

Corporate & businesses green accounting is a new subdivision of accounting. In adding to simply

checking a company’ s income or loss or its profits and costs environmental is a rising field that

emphases for accounting the ecological impact of association. It is worried with accounting for

ecological transaction that consume an influence on the economic performance of the business.

The green accounting is helpful for info about the usage, impact, grade, and the value of normal

resources in a nation. It also stretches an idea around expenditures upon resource administration

and environmental defense. Presenting green accounts in SNA allows the policy-making figure to

investigate the relations among economics & environment charge.

Green accounting purposes at the permanent presence of business organization. It’s now a new

portion of both accounting & educational schemes in maximum countries. Green accounting

5
delivers access to ecological information by measurement the environmental features that touch

the sustainability of a firm. Green accounting similarly organizes the information in an accounting

structure, develops and elucidates environmental assets, environmental liabilities, environmental

income and environmental costs.

Green accounting is measured to be a significant tool for considerate the influential features of the

usual environment with admiration to the economy. The benefit of corporate ecological accounting

inventiveness is recognized as the aptitude to determine and make awareness concerning costs

associated to the atmosphere, which in go helps in classifying the methods for plummeting and

avoiding expenses of such kind. Due to this beneficial feature, the presentation of the atmosphere

has also been enhanced. The environmental charges that happen due to the economic outcomes of

the business’s operation can be strongminded by means of a green accounting utensil. The

operational act of the association can be resolute with the assistance of a certain procedure like

certification and journalism the releases of greenhouse gases (GHG).

The formation of a green accounting scheme is in order to avoid pollution. The system deliberates

the economic actions that consume an influence on power invention and ingesting on atmosphere.

Hence in the modern business world, the operation of green accounting is measured to be a

significant factor. Redeemable environment and emerging the economy is a stimulating feature for

developing nations. The governments that are resolute to be in the arena of or connected to Energy-

reliant builders and power producing utilities are restrained to be underneath more weight with

admiration to instigating green accounting. At the similar time companies from all commercial

sectors are expected to be employing the green accounting utensil to a certain degree in the

imminent years. A new structure of justifiable accounting, recognized as Green Accounting, has

6
appeared. “It licenses the calculation of profits for the country by taking interested in account the

financial damage and exhaustion to the natural properties improper of a budget.

1.3 Statement of the problem

• Green Accounting practice present in Bangladesh is not sufficient and more elaborate like

the developed countries. Some Multi-National Corporation (MNC’s), few public limited

companies and Banking Companies, practice green accounting. Most of the companies

operating in Bangladesh are not aware of it and its application.

• Developing countries like Bangladesh are fronting the dual problems of shielding the green

and indorsing economic growth. In one side, they have to protect the environment at the

same time they have to promote economic development for the protection of the

environment. This becomes a dilemma. The contribution of green properties and facilities

in the state economy is overlooked.

• The contribution of the macro-economic indicator of green accounting is ignored. Green

expenditures related with green accounting practice is not calculated or taken into account.

Most of the companies do not disclose these costs in their financial statement. Only

qualitative information is presented in the director’s report. No attempt is made to disclose

quantitative information in financial statements.

• Environmental accounting practice related guideline is not as effective as in developed

countries. The absence of a proper monitoring system is another barrier to develop the

application of green accounting properly. Companies do not feel the need to practice it

since there is an absence of proper monitoring. This causes different environmental

degradation.

7
 • The contribution for green accounting isn’t calm to calculate since the cost and its profits

established is in qualitative components.

1.4 Research Questions

RQ1: How green accounting measured and estimated the different authors who have

completed researches in this arena?

RQ2: Observe the literature that contracts with green accounting.

RQ3: Select a technical model which is appropriate for maximum of the developing states.

1.5 Research Objectives

1.5.1 Broad Objective

• The broad objective of the study is to know the concept and uses of green accounting

in Bangladesh.

1.5.2 The Specific Objective

The specific objectives are -

• know about green accounting.

• To evaluate the extent of green accounting practices in Bangladesh.

• To explore the comparative position of Bangladesh in green accounting practice.

• To make some recommendations about green accounting practices in Bangladesh

context.

8
1.6 Significance of the study

In developing countries like Bangladesh, greening the national accounts is necessary mutually for

environmental and economic policy invention. The economy of Bangladesh is based on natural

resources and featured which is high population growth and pressure on the natural resources. So,

in Bangladesh mismanagement and fatigue of the natural capital of the country have resulting the

extended assessment of national revenue figures. This presents a wrong picture that our budget is

growing, but in reality, the natural wealth-future prosperity is decreasing. Some green pointers like

green GDP, environment accustomed domestic product (EDP) can be applied; our strategies can

be intended to enhance financial growth without widespread depletion of ordinary resources. More

emphasis should be places for introducing and improving green accounting practice.

1.7 Scope of the study

The expenditures related to environmental matters such as manufacture costs, research and

expansion expenditures which are continuously incurred pre- launch of an invention are for

certifying the protection of the atmosphere. Approximately other environmental expenses are

capital speculation, research and growth cost, planning and management cost, plant operational

cost, the price of remedial procedures and lastly production shrub recovery trials. Capitalization

of ecological expenditures is acceptable if the price of environmental expenses extends the lifetime

of the firm or rises the volume or the competence of assets possessed by the firm, price incurred

in renewing the belongings and cost sustained in making the assets at the time of auction of the

resource. Such costs are associated with that of those at the time of attainment. The firm is

obligated over the legislation to reimbursement for further to cover the environmental costs that

has happened in the earlier, events rising out of the business’s negligence and act. Such spending

9
may also be rewarded to recompense a third party that has hurt from the ecological damages

produced by the firm. Such obligations maybe be also quantifiable one or non- calculable one. The

last one has no possibility to be restrained accurately and scheme it in the equilibrium sheet of the

company. Environmental revenues measured in corporal and monetary standards. It is the totality

of the benefits established through the secure from prevention, lessening and evading of the

environmental features. It’s influence, removal of such impression through the company’s actions,

refurbishment followed after the incidence of an industrial coincidence. Environmental

possessions are in the ownership of the firm as a consequence of environmental rules and

voluntarily actions of the firm. These resources are man-made properties such as contamination

control bonds and ecological protection apparatus. All such possessions are moreover current

asserts otherwise fixed assets.

10
LITERATURE REVIEW

11
2.1 Introduction

This chapter implies literature review of the showing’s studies completed on the issue. Here we

continue working to thoughtful they examine done by diverse scholars concerning the green

accounting. Then the linked empirical lessons & a conceptual background with conversation of

research variable quantity surveyed by the swift of literature & lastly research gaps. An entire of

twenty theories have been stated with admiration to the examiner objectives. The context will then

be castoff as a controller for manipulating the research process, which will be deliberated

pioneering the next portion.

2.2 Green Accounting

Green accounting discusses to accounting applies incorporating ecological costs, effects and

significances. It is about combination of information that relates the environment to the financial

values of the firm, which will clearly have a long-run influence on both financial and ecological

policy of the association. It is somewhat more than purely undertaking social rate benefit

investigation of various schemes of the company of ecofriendly goods and facilities produced. It

is an exertion to identify and depict the fatigued resources and price rendered by governments in

return, to the atmosphere. Green accounting is all around bringing slide in accounts as to ecological

costs. Its uniform tries to quantify both in currency terms as well as in corporeal units. The costs

and profits enjoyed by an association because of its influence towards atmosphere related actions.

Usually green accounting includes the ID, measurement and distribution of environmental

expenses, incorporation of these charges into business, finding environmental responsibilities, and

statement the results to the investors of the business as part of economic statements (Pramanic A.

K., 2002). Green accounting is the credentials, prioritization, quantification, and combination of

12
environmental charges into business results (Datta & Deb, 2016). Its managing uses environmental

expenses and performance information to help create business choices by collecting information

on the prices of production, inventory, unused treatment, and ecofriendly performance.

2.3 Review of Related Empirical Studies - Green accounting perception can be defined

as the production procedures in a firm which practices its resources in extra efficient and further

effective ways to attain the firm’s sustainability. The outcomes enable the business’s development

to be allied with its ecological function which can similarly bring more assistances to the home-

grown community. In this circumstance, the execution of green accounting includes the idea of

savings, e.g., substantial saving, property saving, and vigor saving. The impartial of green

accounting operation is to recover the efficiency of ecological management by leading

environmental valuation of the company’s manufacture activities from the viewpoint of costs and

profits, all of which is projected to create the ecofriendly protection properties. In brief, the

operation of green accounting can deliver information upon the number of procedures which have

been occupied through a firm which can carry positive or adverse involvement to recover the value

of human lifetime and the adjacent environment.

Green accountancy is a subtype of conservational accounting that exemplifies the events taken by

a firm to combine ecological and cost assistances as important info into the firm’s executive

processes or as an economic outcome of professional. Conferring to the EPA, green accountancy

is the ID, arrangement, qualification, and combination of environmental charges into business

pronouncements (Datta & Deb, 2016).

13
Green accounting administration uses environmental expenses and performance statistics to help

manufacture business choices by collecting information on the charges of production, inventory,

surplus treatment, and conservational performance. In further words, green accountancy

management is a mutual approach that delivers the transition of information from financial

accountancy and cost accountancy to improve substantial efficiency, decrease environmental

influence and hazard, and decrease the cost of ecological protection (Le & Nguyen, 2019).

Green accountancy is a method to recognize environmental substances in an accounting scheme.

It reveals ecological quality in monetary statements, uses autonomous environmental economic

reports and cares the environmental rules of a firm to control and defend the environment. For

businesses green accountancy is provocative. Both qualitative & quantitative features should be

personalized to the concern needs. It also industrialized assets secondary environmental rule and

recognizes resources, liabilities, expenses, revenues, and ecological expenses. Part of excellence

control is the outside audit.

Green accounting practice is present in Bangladesh, but this practice is not sufficient and more

elaborate like the developed countries. This practice has some deficiencies because only some

Multi-National Corporation (MNC’s), few public limited companies and Banking Companies,

practice green accounting. Most of the companies operating in Bangladesh are not aware of it and

its application. The country has taken different steps for introducing green accounting practice.

Developing countries like Bangladesh are fronting the dual problems of defensive the green and

indorsing economic growth. In one side, they have to protect the environment at the same time

they have to promote economic development for the protection of the environment.

14
Administrations may have confident internal and outside benefits through means of applying green

accounting structure. Green accountancy emission includes, tracking releases, accounting and

journalism. The statement process between dealers and firms might be developed by executing

green accountancy which would lead to the decrease of costs.

Lohmann (2009) recommend his judgment about the significance of green accountancy: Green

accountancy is supposed to talk reviews such disasters in two behaviors. Primary, it makes

environmental disasters more noticeable to decision-makers, by categorizing them in a move that

makes clear preexisting correspondences or quantifiable relations with possessions and other

financial objects. Subsequent, green accounting assistances transform substances into commercial

'goods and services' Whose worth can be 'discovered' in marketplaces themselves. Skill itself

becomes a relative valuation and ecologist action.

Exploring the procedures to develop the ecological reporting that allows the government to apply

and making trades more answerable for their outwardness. Furthermore, as the deliberation for the

environmental accountancy increases, there remains a parallel growth in measuring the situation

performance. The current GDP accounting scheme will result in untenable development. It

decreases the amount of economic development rather than measurement national prosperity. This

paper similarly tends to distinguish the outdated GDP and green accountancy apart from the

disadvantages of remaining GDP can be remunerated by green accountancy methodology.

15
2.4 Conceptual Framework

Green Accounting is the tenure popularly castoff across states for the revelation of environment

linked data, examined or not, concerning environmental dangers, environmental expenses and

obligations. Corporate ecological protection would include green accountancy initiatives occupied

by the initiative, the adverse influence of its manufacture process and harvests on the atmosphere

both in measurable and qualitative relations and its creativities in procedure and product inventions

in order to attain sustainable development. Generally, info disclosed by the firms in their yearly

report around green accounting and journalism include current and future prices for goods as well

as procedures redesign, current and upcoming capital expenses for pollution and resistor, physical

information related to the decrease of poisonousness and leftover, estimates of upcoming

environmental expenses and aids, the buildup of current conservation costs from present as well

as historical activities and goods etc. (Qureshi et.al., 2017). The basic objects of green accountancy

include Separation and teamwork of all atmosphere related movements and pillories of assets,

taking the entire stock of assets related to ecofriendly issues, and deviations, there in, Minimalizing

environmental impressions through enhanced product and procedure design, the approximation of

the whole expenditure on defense or enhancement of atmosphere, assessing deviations of situation

in terms of charges and benefits, to classify that portion of Gross Domestic Product this reproduces

the expenses necessary to recompense for the adverse impact of financial growth, dropping costs

through reserve cooperation, administration and realizing structural accountability and cumulative

environmental slide.

2.5 Development of Hypothesis

H1: The application of green accounting effects the environmental performance.

H2: Effects of Green Accounting on GDP.

16
RESEARCH METHODOLOGY

17
3.1 Introduction

Research methodology is the procedure to gather data and information to making the choices for

business decision. Under this section the researcher see source, method of data collection, target

population, sampling frame, sampling techniques, sample size, method of data analysis, statistical

tools, variables definition and model specification. Methodology is the deliberate, hypothetical

examination of the strategies connected to a field of study. It includes the theoretical analysis of

the collection of techniques and standards associated with a branch of information. Commonly, it

envelops concepts, for example, theoretical frameworks, and stages, qualitative or quantitative

methods. This chapter outlines the research methodology that this study applied. It includes

research method, research design, research approach, research source, the population that is

targeted in the study and the sampling methods that are applied. Further, the chapter presents the

data collection procedure and discusses the empirical model that is applied. Lastly, the chapter

presents the procedures that are used in data analysis and how the analyzed data is presented.

3.2 Research Methods

Quantitative research is a set of methods and techniques that allow researchers to answer research

questions. It is used to meet the overall objective of this study to frame the descriptive approach

to determine the outcome and impact by running the hypothesis under it. Quantitative methods and

techniques tend to specialize in quantities in the sense that numbers represent values and levels of

theoretical constructs and concepts. This research method is also related with discovering proof to

either support or reject theory that is defined in the earlier phases of the study.

18
3.3 Research Design

Research design is a plan outlining how information is to be gathered for an assessment or

evaluation that includes identifying the data gathering method(s), the instruments to be used, how

the instruments would be administered, and how the information would be organized and analyzed

(Assumptah & Muhari, 2017). It also describes issues involve in the research design relate to the

purpose of the study; exploratory, descriptive and/or causal. The research design used for this study

is a descriptive research design that basically involve obtaining information concerning the current

status of phenomena to describe,” What exist” with esteem to variants or condition in a situation

(Gardner et al.,2004).

3.4 Research Approach

Research method can be divided into two types:

1. Deductive research approach

2. Inductive research approach

This study is with deductive approach associate through quantitative research. It is passed out with

an attentiveness of developing hypothesis based upon existing theory, and then formulates a

research strategy to test the hypothesis. This method is best fitted through the Deductive approach

which states to the deduction of the conclusions from the propositions. The significance of

hypothesis to the training is the main distinctive point among deductive & inductive approaches.

Deductive approach trials the validity of existing assumptions whereas inductive approach donates

to the emergence of innovative philosophies. A deductive investigate approach might trial to see

if this link did get on more general circumstances.

19
3.5 Research Source and Nature of Data

In purpose of efficiently carry ready a scholarly work, it is important to choose on how to gather

data. Therefore, the study has been prepared by analyzing minor data. Subordinate data are existing

data that can be retrieved from existing works; internet, books, trainings, journals, magazine,

yearly reports and newspaper etc. depending on the subject area one means to investigate. It

similarly refers to individual’s data which remain already in book form or composed through

someone other than the investigator or for around other purposes than the present research plan

(Zikmund, 2013). According to Zikmund et al., (2009) minor data are essential in example when

primary information can ‘t be obtained and they’re quickly accessible. Since, satisfactory data is

gotten from secondary bases which assistance to attain this study impartial. The board secondary

information is quantitative trendy nature and incorporate financial declaration reports. The

subordinate data contain publications from others. Secondary information used in this learning has

been extracted as of the internet which has been obtained in the internet and I collect it through

using doi number at sci-hub for a period of years from 2016 to 2020.

3.6 Method of data collection

The impartial of this methodical review is double: first, to know the concept, extent of green

accounting practices; second, to specifically summarize few unemployed areas of green

accounting that forthcoming research should effort on. To attain the mentioned impartial, four

leading academic catalogues including Scopus, Emerald, EBSCOS and Science Direct were

sightseen to identify trainings on green accounting. This paper analyses literature straddling from

2016 to 2020. Journals were recognized in the “article title, abstract, and keywords” unit of the

supposed databases with keywords as “Green accounting”; “Sustainable development”;

“Environmental cost”; “Green capital.”; To retain the search procedure specific to the objects of

20
this learning, above keywords stayed used with the topic limits of “Accounting, Environment,

Concept, psychology.” A whole of 1162 articles were recognized through the nominated search

criteria, of them only 792 studies lived to be occupied for final investigation. Here I found that

some topics are irrelevant and I exclude them. The number of irrelevant files is 369. This paper

rejects annual information, master & doctoral theses, schoolbooks and conference documents

(Ngai et al., 2018). The recognized 792 articles remained placed on a solitary excel sheet &

replicative trainings were removed, sendoff 369 articles intended for further study. A detailed

valuation of the occupied article (Mahmud et al., 2016) was achieved to determine the significance

of the trainings to green accounting. Afterward this assessment, 545 articles that obligated “green

accounting” or slightly of the particular keywords vital to their conversation were selected for the

final study. Respite of the 247 articles ought to use “Sustainable development, Environmental cost,

Green capital” or somewhat other designated keyword but remained found to be immaterial to the

client engagement argument and were not measured. For example, Journals such as “Green

Accounting, Environment pollution and Health” by Huhtala and Samakovlis (2017) and “Carbon

accounting: a systematic literature review” by Stechemesser and Guenther (2018), etc. were

excluded.

21
 Articles identified in Scopus, Emerald, EBSCOS
and Science Direct within the relevant subjects
spanning

( n =1162)

Articles placed on an excel sheet and

removed the duplicate entries
Articles removed ( n =247)
( n =369)

Full article assessment undertaken and

checked the relevance of the articles to
“green accounting” discussion Articles excluded ( n =55)

( n =545)

Articles included in the review

( n =792)

Figure 1. Flow diagram of article selection process

In this figure, I included articles identified in Scopus, Emerald, EBSCOS & science direct with in

the relevant subject spanning. Then those articles placed on an excel sheet and remove the

duplicate (entry a variable in two or more times) entries. From there full article assessment

undertaken and checked the relevance of the articles to “green accounting” discussion and some

articles excluded also. And finally, I taken article in the review.

The study is exploratory in nature. The motive is that in our nation the usage of green accountancy

is rare and maximum of the belongings, the idea is vague. Literatures were generally collected

from the said sources. As a result, a thorough review of literatures enabled me to make a consistent

presentation of the theme of the study. Maximum of the articles consume concentrated on single

engagement item at a time nevertheless few articles take also recognized green accounting

substances in their lessons.

22
3.7 Method of Data Analysis and Statistical Tools

After assembling the relevant information, the numerical tools castoff to analyze the information

for deriving various relations are mentioned underneath:

3.7.1 Scopus

Scopus is an abstract and citation database for Elsevier that was introduced in 2004. Out of

approximately 11,678 publishers. Scopus encompasses almost 36,377 titles (22,794 active titles

and 13,583 inactive titles), of which 34,346 are peer-reviewed journals in top level subject fields:

life sciences, social sciences, physical sciences and health sciences. Three kinds of outlets are

covered: book series, newspapers and trade journals. To ensure that high quality standards are

upheld, all publications covered in the Scopus database, regardless of who they are published

under, are reviewed each year. Searches in Scopus also incorporate patent database searches. For

each word, Scopus offers four types of quality measurement: h-Index, CiteScore, SJR (SCImago

Journal Rank) and SNIP (Source Normalized Impact per paper)

3.7.2 VOSviewer 1.6.16

VOSviewer is a bibliometric network creation and visualization software tool. For example, these

networks can involve journals, scholars, or individuals’ publications and they can be established

on the basis of citation, bibliographic coupling, co-citation, or relationship with co-authorship.

VOSviewer also includes text mining features that can be used to create and visualize important

words extracted from a body of scientific literature in co-occurrence networks.

23
CHAPTER 4:
FINDINGS,
ANALYSIS &
DISCUSSION

24
4.1 INTRODUCTION

In previous studies, we find that lots of papers, authors and country whose are research about green

accounting. From this we only find out the major Keyword, Author and Country whose are

research more about green accounting. Content investigation was used to fold study data. The

sustainability intelligences and all additional materials connected to green accounting theme

published by the learning sample throughout the dated (2016-2020) was intensely viewed. The

training applied upon eighteen authors, twelve countries and some major key words based on data

availability, and some data were excluded because it was before 2016.

4.2 AUTHOR’S of GREEN ACCOUNTING

The Authors who research more about green accounting are- Tittler, Rebecca, Beaulieu, Nadyre,

Galinas, Nancy, Messier, Christian, Berninger, Kati, Meek, Philipe,Kneeshaw, Daniel d., Rheault,

Heloise, Paquette, Alain etc.

Table 1: Author’s Name

25
In this figure, those authors have the more research paper about green accounting. Now we

discussed about their publication what they said about green accounting- According to Tilller and

Rebecca (2016) The key purpose of green accounting work is to calculate, during the accounting

year, the overall value of the output of forest products and services, and the partly modified green

GDP and NDP.

Green accounting is a subtype of environmental accounting that illustrate a company’s steps to

incorporate environmental and cost advantages as essential information in the decision-making

processes of the company or as a business financial result. Green accounting, according to the

EPA, is the recognition, prioritization, quantification or certification and integration into business

decisions of environmental costs. (Beaulieu & Nadyre, 2019)

In order to help make strategic decisions, Green Accounting management uses environmental costs

and performance data to gather data on production costs, inventory, waste disposal and

environmental performance. In other words, green accounting management is a holistic

methodology that enables financial accounting and cost accounting data to be converted to increase

material performance, minimize environmental impact and risk, and reduce environmental

mitigation costs. (Le and Nguyen, 2019).

According to Christian (2020) Accounting for the air we breathe, the water we drink, is the basis

of green accounting. One way to do this is to establish an account for the natural assets of important

natural resources. Such as fertile land on which an enterprise is reliant economically. A natural

resource cost will be reported in the financial statements of an organization when these assets are

degraded. This will reveal levels of emissions in excess of ecosystem- sustainable levels. A new

26
social contract between business and the stakeholders to whom they are accountable will reflect

this accounting. It also represents a company mission that understands that some aspects are

beyond accounting.

In this scenario, the definition of reserves, e.g., material reserves, land-living saving and liveliness

saving needs the overview of green accountancy. The aim of the overview of green accountancy

is to increase the competence of environmental supervision by leading an environmental

evaluation of the corporation’s manufacturing activities from a cost-benefit or impact perspective,

both of which are intended to have an impact on the conservation of the environment. In short, the

introduction of green accounting will provide information about the degree to which a business

has taken actions that can contribute positively or negatively to improving the quality of human

life and the environment.

Sustainable development regulates the third base and current stage of environmental rule (Paquette

and Alain (2016). A detailed and commonly putative meaning of sustainable development is

tranquil missing. Here are, nonetheless, some fundamentals in the attitude of sustainable

development which-even uncertainty they are immobile vague- might be secondhand as guidelines

aimed at an outline of “green” accounting also sustainability pointers. Founded on theoretical

opinions, the German Central Statistical Workplace has established a framework aimed at an

Environmental Financial Accounting Scheme which is before now be understood and available to

an amount that is pertinent for real policy creation in Germany.

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4.3 KEYWORD’S of GREEN ACCOUNTING

Using VOS viewer software, we find out the most used keyword about green accounting.

Important keyword coming out regarding green accounting are- Capital maintenance,

Environmental cost, accidental loss, contingent valuation, green design, ecological economics,

green GDP, forest, emissions, natural resources, model, health, valuation, cost, impact, framework,

industry, forest, education, policy, environmental performance, sustainable development, green

accounting, income, innovation, engagement style, biomass, economy, performance, capital gain,

investment, national product, accounting, perspective, corporate social responsibility, international

accounting standard, environmental sustainability, management, allocation, product,

sustainability, wealth, resources, oil, basin, genuine savings, depreciation etc.

According to (Daniel D. et al., 2019), The regulatory element, i.e., legislation and plans of resident

governments as business partners, is the most evident administrative feature (i.e., as of the

administration) that can coercively enforce regulations on the business and safeguard the

effectiveness of green accountancy implementation with respect to economic actions. This is

reinforced by a research by (Meek & Philippe, 2020). It notes that the incorporation of green

accountancy in a multifaceted system of environmental supervision will aid as self-regulatory

obedience with current rules and strategies.

(Galina and Nancy, 2017) demonstrate that the revelation of all ecological costs (interior and

exterior), the forms of cost distribution and the exposure of causes in formal environmental

accountancy can lead to the presentation of the environment.

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 Table 2: Keyword

Those keywords are very often used in green accounting. Those keywords would be discussing

here broadly-

• Capital Maintenance- is a green accountancy concept founded on the attitude that a

business's income would only be documented after it takes fully healthier its charges or

its principal has been preserved.

• The idea of green accountancy has been anticipated as a modern and improved way to

enhance environmental preservation, since a corporation can voluntarily fulfil with

government laws and policies in the local areas where the company operates by adopting

green accounting.

• Green GDP- Monetizes biodiversity losses and accounts for the cost of climate change.

Green GDP can be achieved by deducting from traditional GDP emissions investments or

adding variables such as negative urbanization costs, etc.

29
• Green Design- It minimizes the adverse effects on human health and the ecosystem of

building projects.

• Environmental Cost- There are expenditures or cost connected to environmental controls,

including costs related to production and expenses related to product research and

development, which are incurred mainly to ensure environmental protection. Whole

environmental spending can be divided into six groups, such as principal expenditure,

operational costs, expense of research & development, environmental management &

planning expenses for remedial dealings & recovery actions.

• Ecological Economics- It promotes the human well-being, sustainability, and justice of

green accounting.

• Accidental Loss- Accidental loss happens in green accounting when occurs in an accident.

• Corporate Social Responsibility- The practice of CSR is to propose and collaborate all

environmental inflows such as stocks of tangible assets, company capital, total stock

reserves relevant to environmental problems and improvements in the minimization of

environmental influences by upgraded and creative product & product project that do not

affect the environment in order to maintain and deliver a space for sustainable development

aimed at the future peers.

• Sustainable Development- green accountancy as a widely Generally Accepted Accounting

Principles (GAAP) is a roadmap for future generations to sustainable growth.

• Incomes- In corporal and financial standards, it is calculated. It is the sum of whole of the

assistances established by the company from the environmental aspects of mitigation,

reduction and avoidance, its effects, the elimination of such impact by the actions of the

company, the reconstruction followed after an industrial accident occurred.

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• International Accounting Standards- It’s first international bookkeeping standards that

remained issued by the Global Accounting Standards Group. Internationally

comparable accountancy standards indorse transparency, liability, and competence in

financial marketplaces around the biosphere.

• Environmental Performance- Organizations attempt to measure the genuine environmental

recital in footings of the prearranged standard performance pointers.

• Natural Resources- Green accountancy is a significant tool for thoughtful the role amuse

yourself by the normal environment trendy the economy. Ecological accounts deliver data

which highpoint both the influence of natural properties to financial well-being and the

prices imposed by contamination or resource squalor.

• Depreciation- here is an irregularity between artificial and natural wealth in that

devaluation in the previous reproduces in GDP financial records.

• Economy- Green accountancy is a significant tool for sympathetic the character played by

the normal situation in the budget.

• Health- administrations identify their particular environmental reporting limits such as

environmental rule, health care and atmosphere, energy upkeep, corporate

sustainability/ecological initiatives, sustainability journalism, waste administration, water

supervision, wind/renewable vigor sources, environmental info system, environmental

revelation practices, ecological targets, ecological reporting pointers, ecofriendly cost and

advantage environmental accountabilities and ecofriendly assets.

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4.4 COUNTRY RESEARCH MORE ABOUT GREEN ACCOUNTING -

The country which has research more about green accounting are- Australia have 6 documents

and citation is 147 times. Austria have 2 documents and no citation. Bangladesh have 1 document

and 6 times citation. Belgium have 5 documents and 53 citation. 18 documents of Canada and

155 citation. 1 document of chile and 9 citations. Colombia have 2 documents and 44 citations.

1 document of Cuba and 44 citations. 1 document of Czech Republic and no citation. 4 documents

of Denmark and 99 citations. England have 18 documents and 444 citations. 3 documents of

Finland and 30 citations. 4 documents of France and 46 citations. Germany has 8 documents and

128 citations. 1 document of Ghana and 3 citations. 2 documents of Greece and 5 citations. 1

document and 6 times citation of Hungary. 3 documents and 25 times citation of India. 4

documents and 22 times citation of Indonesia. Iran has 1 document and 2 times citations of this

report. 2 documents of Ireland and 14 times citations. 1 document of Israel and 9 times citations.

Italy has 12 documents and 37 times of citation. Lithuania has 1 document of green accounting

and 1 times of citation of this report. Malaysia has 1 report and no citation. Mexico has 1 report

and no citation. Netherlands has 5 reports about green accounting and 180 times of citation.

Norway has 2 documents and 35 times of citation. Peoples republic of china have 13 documents

and 32 times of citation for those papers. Peru has 1 document and 9 times of citation. Portugal

has 1 document and 18 times citation of this report. 4 documents of Romania and times of

citation for those documents is 13. 2 documents of Scotland’s and 62 times of citation. Serbia has

4 reports and 29 citations. South Africa have 2 reports and 4 times of citation. 2 documents of

South Korea and the times of citation of that report is 20. 1 report of Spain and 16 times citation.

7 report of Sweden and citation is 74 times. 1 report of Switzerland and citation is also 1 time.

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Taiwan have 6document and citation is 14 times. United Arab Emirates have 2 report about green

accounting and times of citation of those documents is 7. Ukraine has 2 documents and no

citation. United States of America have 31 documents about green accounting and the citation

of those report is 494 times.

Table 3: Country Name

In this table – 3, Those countries are research more about green accounting. Here is explained

below –

• India- India applied green accounting at their corporate. They try to progress a theoretic

model explanation the entire process of green accountancy for business in India. Using it

for sustainable development.

• Peoples Republic of China- China study about green accounting for corporate

sustainability.

• Sweden- Sweden research Green Accounting for preventing their Air Pollution and Health.

33
 • Belgium- Study from Belgium on Green Accounting and sustainable manufacturing

management in developing countries.

• Italy- Italy research about green accounting for their hotel management.

• France- France studies green accounting for legislating to delimit obligatory and voluntary

accounting and by practitioners to establish green accounting in companies.

• Serbia- They use green accounting for cost measures. It also outlines a usual of green

accountancy measures that remain to be spoke in environ-mental organization accounting

scheme of a firm.

• Canada- They travels what the green budget means to Canada, through a particular

emphasis on Canadian corporations and the accountancy occupation. It suggests a method

of accountancy for companies’ social responsibilities as positive obligations below the

doctrine of promissory estoppel, thus exposing convinced limitations of monetary

accounting, assumed its current theoretical framework.

• Colombia- They defines the current municipal of green accountancy in the foremost mining

firms in Colombia rendering to the Office of Energy and Pits of Colombia.

• USA- They use green accounting for designed to cover the interactions of the economy

and the environment.

The European nations, the U.S., Japan, the UN and Taiwan have consecutively promoted green

accountancy guidelines and obligatory enterprises to reveal environmental improvement info, so

as to recover the environment finished production that resolve unavoidably influence product

engineering. How product project should reply to this tendency is an anxiety of this education.

Green project is supported and industrialized in reply to the progressively deteriorating

34
worldwide environment, nonetheless its application is only founded on the ethics of the

businesspersons, without financial incentive and lawful restraint. As a consequence, green

project has not been extensively adopted.

The necessities of green accountancy include: increasing corporate social responsibility,

manufacture cannot be excused from environmental defense, the industrial of clean harvests can

generate contamination, the external manufacture cost would be adopted, the reshape to

recover the product manufacture process and wrapping, reducing reserve waste and applying

the (Reduce, Recycle, Reuse) 3R strategy, lifecycle valuation for all valuations and emerging

environmentally-friendly harvests, which can be resolved with green project.

Green accounting an effect on environmental performance. The submission of green

accountancy is predictable to improve the protection of the environment since the businesses

which instrument green accountancy are willingly comply with administration regulations and

rules in the part where the corporations are operating.

35
 CHAPTER 5:
RECOMMENDATIONS
& CONCLUSION

36
5.1 Recommendations

Following commendations are put forward for improving Green accounting practices in

Bangladesh.

• The conventional economic account can be expanded with the physical information about

normal environment & its position. To ensure this the government must come forward.

• Pertinent ministry can deliver portfolio on corporeal indicators for forests-like zone under

jungle, value of timber which can likewise be decided in conventional contribution output

type media.

• A careful assessment of cost of green damages and benefits can be introduced to bargain

the safe limit of green squalor and obligatory level of growth.

• Emission accounting system that identifies pollution emitted from different economic

sectors of Bangladesh can be introduced and implemented.

• Conventional national accounts may be desegregated to detect expenditures specifically

related to the green.

• Non-marketed green goods and services should be valued for improving green accounting

practice. The valuation of green goods and services will help improving green accounting

practices.

• Green GDP can be introduced side by side the traditional GDP. Green GDP can be

calculated by deducting pollution expenses from the conservative GDP or addition factors

like adverse costs of development and industrialization.

• Depletion of natural assets like forests, minerals, fisheries, soil, and water can also be

provided to safeguard equal action of ordinary capital in computing net income. Green

37
 indicators like green GDP, environment adjusted domestic products (EDP) can be

introduced.

• Both the government and private sector must come forward for improving Bangladesh’s

performance in green accounting performance index and introducing green accounting

practice in Bangladesh.

• Offering different types of benefits from the government side, financial and non-financial,

tax exemption or rebate, reduction on import duties or extension of tax holiday facility etc.

will encourage more new companies to implement green accounting practice properly.

• Proper monitoring should be made on a regular basis in the application of green accounting.

Companies who are already practicing green accounting to some extent should come

forward and make more contribution in green accounting practice. They should expend

more in preserving and protection of the environment.

• If there investigate more research about green accounting in Bangladesh, than we would

be adopt in our many sectors.

• Both the government and private sector should play more effective role to increase

Bangladesh’s score in the Environmental Performance Index (EPI).

• Environmental accounting, emission, degradation, costs; resources should be presented in

the financial statements according revelation obligation in Bangladesh is the revelation of

expenses on liveliness use. Further down Schedule-XI, Part-II of the Companies Act 1994

and underneath Agenda, Part-II of the Safeties and Argument Rules, 1987.

38
5.2 Conclusion

In relation to environmental responsibility and sustainability, the recent paper has probed into the

numerous ways in which dissimilar researchers have approved out their particular investigations.

In contrast to their western counterparts, minimal literature is obtainable on social & green

accountancy in developing and developed countries. Their socio-economic realities are very

distinct in the case of developing and developed nations, as are the business reasons for reasons

for communal and ecological accounting. Auditors and managers do not embrace the detail that

even though they are very lucrative and successful, schemes that are in defilement of essential

environmental functions may not be accepted. When it originates to worldwide clean-up labors,

administrators who are supplementary environmentally inclined can convince consumers to take

accountability for a greater share of their involvement. In order to impart them the practices

involved in ecofriendly accountability and the arithmetical methods necessary to assess

compliance with ecofriendly legislation, inner accountants would be expected to work in

collaboration with conservational engineers. The paper established a multifaceted theoretical

structure to support environmental supervision (serious environmental hazards; corporate

accountability; new business-environment relationships; assessing the impact of industry and

revealing and documenting effects) by providing a perfect for green accountancy. The prototypical

was created by a personal belief that corporations should variety an effort to safeguard that

ecological concerns are spoken. In considering the political and social complexities of the present

situation, the model also sought to be objective. This unique prototypical is not intended to be

limited or to be a more efficient amount than other theoretic models. It is, however, one

prototypical from which it is possible to assess environmental change. The influence of this tabloid

and other hypothetical work in green accountancy does not completely accept the opinions of the

39
occupational community, although it does not offer extreme views that can not be applied in

somewhat real-world situation at the same time. The paper aims to pint out that in attendance is a

need for a countless deal of compassion towards the introduction of green accountancy practices

and the legitimate and feasible prescription of important theoretical strategy needs. The

investigator suggests that potential investigate should be addressed in a way that academics are

fully amenable to approaches relevant to supporting green accountancy and mobilizing risks in

purpose of identify the challenges of contemporary green accountancy practices and to build a

viable method that takes all sensitivity issues into account.

5.3 Limitations of the Study

• The study covered a dated of four years, throughout this time not more publication about

green accounting done in Bangladesh.

• Insufficient data is the key limitations of the report’s production and there are also no

techniques to check the quality of the data obtained.

• Another restriction in the preparation of the report was inadequate documents and

publications relevant to green accounting, so not all the findings are enclosed by this

analysis.

• Lastly, as a beginner, it would be prudent to suggest that the investigator is tranquil at the

early stage to be able to easily perform such research documents.

• In spite of all these limits, however, the investigator has strained to asylum all important

features of the analysis and has strained to have a successful outcome.

40
CHAPTER 6:
REFERENCES

41
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