What Is Green Accounting, and Why Should It Be on the Minds of the CFO?

What Is Green Accounting, and Why Should It Be on the Minds of the CFO?

This IDC Perspective explores green accounting, and why it should be on the minds of the office of the CFO. With continued focus on sustainability from governments and companies, there is an increase in focus on developing and setting standards for green accounting. We can see there might be regulations in the future, given there has been an increase in focus from all governments in the G7 and those who signed the Paris agreement, to create goals and incentives on clean energy and sustainable development."For years, many in finance thought of green accounting as public relations accounting, but we are starting to see some of the typical accounting standards and reporting boards incorporate green accounting principles into their frameworks, due to the focus on environmental change and how to combat it by governments. What gets measured and put into regulation will be where we see investment from the office of the CFO," says Heather Herbst, research director, Worldwide Office of the CFO, IDC.

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