Methodology
Sustainability Accounting has increased in popularity in the last couple of decades. Many companies are adopting new methods and techniques in their financial disclosure and information about the core activities and the impact that these have on the environment. As a result of this, stakeholders, suppliers and governmental institutions want a better understanding of how companies manage their resources to achieve their goals to accomplish sustainable development.
According to common definitions there are three key dimension of sustainability. Every dimension focuses on different subsets.
| Environmental factors | Social | Economic |
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Sustainability accounting connects the companies' strategies from a sustainable framework by disclosing information on the three dimensional levels(environment, economical and social). In practice, however, it is difficult to put together policies that promote simultaneously environmental, economic and social goals.
This trend has made companies not to emphasize in the creation of value but also in the risk mitigation that are linked to the environmental and social subset of sustainable development. This development has being driven by multiple factors connected to:
- Sustainability issues that materially affect a company's creation of value, risk and liabilities
- The need for business to appropriately respond to sustainable growth.
Read more about this topic: Sustainability Accounting
Famous quotes containing the word methodology:
“One might get the impression that I recommend a new methodology which replaces induction by counterinduction and uses a multiplicity of theories, metaphysical views, fairy tales, instead of the customary pair theory/observation. This impression would certainly be mistaken. My intention is not to replace one set of general rules by another such set: my intention is rather to convince the reader that all methodologies, even the most obvious ones, have their limits.”
—Paul Feyerabend (1924–1994)