Accounting

Sustainable development goals are important. Now is the time to safeguard the well-being of people, the economy, society and the planet. Why is it important? Looking at the issue of sustainable development, the whole world has been facing a global pandemic that has cost millions of lives and an economic downturn. Then, development so far has not been carried out evenly, there have been many injustices, and has never been directed to sustainable development.

The current crisis is already threatening the achievement of sustainability and further delaying the transition to a green economy. However, a shared commitment to achieving sustainable development goals continues. The United Nations (UN) encourages not only governments, but also businesses to get involved in these goals.

Companies as active development actors must play a role in maintaining and caring for the environment and climate change to support sustainable development. Through a summit in Brazil in 1997, 178 countries worldwide agreed on a joint plan of action to improve human life and protect the environment.

Until 2015, the world again made the Paris agreement on climate change. They make fundamental support for sustainable goals by discussing issues of energy, water, climate, oceans, transportation, science and technology, sustainable development reports, and partnerships.

Current economic activity is one of the factors causing global warming and environmental problems. Many companies use limited resources to fulfill their corporate goals.

Thus, current development must be directed at sustainable development, namely development that balances aspects of the economic and social environment. Sustainable development is a compromise between limited natural resources and the achievement of economic goals.

One of the important aspects of sustainable development, namely the ecological or environmental aspects, will be fulfilled if the company implements Green accounting which is proven to improve environmental performance.

In every industrial development, it is important that the company pays attention to the surrounding environment so that this can prevent pollution or damage to the environment and sustainable natural resources and the carrying capacity is not disturbed.

The main principle of sustainable development is to meet the needs of the present without compromising the needs of future generations. Therefore, green accounting is able to fulfill environmental and social aspects in achieving sustainable development by allocating environmental costs.

Sustainable development can be achieved if development activities carried out in addition to pursuing economic interests, also pay attention to social and environmental interests. Thus, efforts to link the company's economic interests and environmental conservation with the implementation of Green accounting, the results of the financial statements will be holistic.

In 1971, Parker has explained green accounting or what is called Green accounting. Then Green Accounting has experienced scientific progress. The concept of green accounting involves the assessment of environmental costs and resource losses within a country.

It has become a necessity for companies to develop methods to promote green incentives for the present and the future through green accounting. By studying green developments and becoming the big picture, green accounting is able to promote a sustainable future.

Sustainable development requires companies to consider their performance goals in three dimensions, namely: financial, environmental and social. That is, the company has a goal to gain profit in the financial aspect, but the company is required to protect the environment and social.

In addition, an understanding of environmental issues will direct the company in its policies, especially those related to environmental safety

In fact, sustainable accounting, social reporting, and the environment have not really been rooted in the concept of sustainability and ecology. Reporting and accounting concepts that exist are only as a complement and legitimator of the company, that the company does have social and environmental concerns only "clothes" and not the "heart" of the company.

However, many researchers state that the main source of environmental damage in addition to thinking about economic benefits, companies should also be responsible for the environment. As explained above that companies must return to improve the environment.

The old business paradigm, the organization was only built with a single P (profit), but in line with the current global warming issue, the company began to take into account the 3P concept, not only profit but also have to look at the planet and people.

Triple bottom line theory implies that companies must prioritize the interests of stakeholders (all parties involved and affected by the activities carried out by the company) rather than the interests of shareholders (shareholders).

The demands on the company are getting bigger and the company must look at a new side, namely the company's responsibility to stakeholders, and the company is not only concerned with the interests of management, but also employees, consumers, society and the environment.

Thus, when humans are empowered and the planet remains sustainable, profits will come automatically, both the benefits enjoyed by management as the entity's managing agent and investors as owners of the economic entity.

So profit (profit) is not the first and main goal, but becomes the impact of good and responsible company performance. Profits that will be long term and sustainable.

With green accounting, sustainable development goals can be achieved. Green accounting must be implemented properly, companies should pay special attention to protecting the environment and disclosing environmental management by companies.

According to the concept of sustainable development, resources are used to meet current needs, without reducing future resources. Therefore, it is said that implementing green accounting can save our future generations.