Seetharaman, Ismail, and Saravanan (2007) conducted a survey to identify some current issues in the environmental management system (EMS). Then, Seetharaman et al. built an environmental accounting (EA) research model in manufacturing industry to determine and establish the monitoring and measurement in the environmental accounting system. In their first study, the findings of survey showed that there existed three main issues in the EMS, namely:
- Lack of environmental awareness: 68% of companies underestimated their business impact to the environment.
- Lack of perceived benefit: only 50% of companies believed that investment in environmental initiative would offer them some benefits.
- Lack of government pressure
In their second
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Reynolds and Tilt (2012) demonstrated that management accounting (MA) could make contributions to the corporate environmental strategy (ES). Evidences are shown theoretically by developing an ES-MA conceptual framework and practically by drawing conclusions from a sample of six Australian companies. Under the conceptual framework, environmental management accounting (EMA) played a crucial role in the linkage of MA and EA. When the information provided by EMA could match the required information from ES programs, MA could be deemed to support ES. From case study perspective, the findings showed that six Australian companies’ MA supported ES. As those six companies operated in different industry with different size and richness, their ES-MA linkage levels were also different. Due to the importance of EMA to the ES decision making, some companies even sought external EMA services in their ES processes.
Through the report, it can be seen that EMA information is vital for environmental performance decisions. And from each environmentally responsible business, it is mandatory to include the environmental considerations into performance evaluation. Therefore, companies should adopt advanced software and develop suitable systems to make sure that EMA information is