BRIDGING THE GAP BETWEEN GREEN ACCOUNTING AND BLACK INK

The essence of green accounting is accounting for the air we breathe, the water we drink. One way to do this is to create a natural asset account for essential natural resources - such as fertile land - on which an enterprise is economically dependent. As these assets are degraded, a natural resource expense would be recorded in an enterprise's financial statements. This would disclose pollution levels in excess of levels sustainable by an ecosystem. This accounting would reflect a new social contract between business and the stakeholders to whom they are accountable. lt would also reflect a business mission that recognizes that some things are beyond accounting.