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Importance Of Sustainability Accounting

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Framework of Sustainability Accounting

Every type of accounting needs a framework which will guide and help it to reach the maximum efficiency. Presence of a strong framework will help companies following sustainability accounting have a clear and precise idea about what to do and what not do.
In the US, there are many boards which are helping to from a sustainability accounting board. The major actors in building the framework are given below:
1/Sustainability Accounting Standards Board(SASB): Sustainability Accounting Standards Board(SASB) is a non profit organization was formed in 2011 by Jean Rogers to help develop the sustainability accounting standards. . The SASB maintains sustainability accounting standards that help public corporations …show more content…

Some perform corporate social responsibility and some of them do green accounting. But, there are not appreciated as much due to the lack of framework in Bangladesh. It would be a lot beneficial to Bangladeshi organizations if they start following global reporting initiative which is practiced by many organizations all over the world. In addition, they can also develop a separate sustainability accounting framwork in Bangladesh which only be applicable to the companies within the country.
Importance of Sustainability Accounting
In this competitive era, an organization can differentiate it from another company by doing something unique. Every country in the world follows FASB(only for the U.S) and IASB. By following it, they can measure their financial information and compare it against other companies. In recent times, many companies are practicing sustainability accounting. The non financial information about a company can give a very good idea about whether or not to invest in the company.
Sustainability accounting is mainly divided into four parts: environmental factors, social and …show more content…

An organization also has responsibility towards the environment. In this era of carbon emission and global warming, the importance of sustainability accounting is enormous. Companies must follow and practice sustainability accounting in order to reduce the carbon emission and move forwards towards leaving a better world for the future generations. Climate risk is increasing at an alarming rate. It will affect most of the organizations in the world. So, organizations must give equal importance to the non financial information as much as the financial

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