Title: Financial and non-financial environmental information: significant factors for corporate environmental performance measuring

Authors: Ioannis Nikolaou; Konstantinos Evangelinos

Addresses: Department of Environmental Engineering, Democritus University of Thrace, Vas Sofias 12, Xanthi 67100, Greece. ' Department of Environment, University of the Aegean, University Hill, Lesvos 81-100, Greece

Abstract: Nowadays, many companies implement strategies for managing their day-to-day negative impacts on the environment mainly due to direct and indirect pressure from stakeholders. The impact of these strategies can be recorded in financial and non-financial terms, both being necessary for measuring overall business performance. This paper summarises relevant literature on current environmental accounting methods and presents a conceptual model for recording and disclosing information on financial and non-financial environmental performance in a reliable and transparent manner. This model analyses the steps for interpreting business environmental strategies in appropriate terms in order to follow environmental financial information through formal financial statements (balance-sheets and profit and loss statements) as well as non-financial environmental information into balance footnotes.

Keywords: formal financial statements; economic performance; corporate environmental management; stakeholder theory; environmental accounting; financial reporting; environmental information; performance measurment; non-financial information.

DOI: 10.1504/IJMFA.2012.044837

International Journal of Managerial and Financial Accounting, 2012 Vol.4 No.1, pp.61 - 77

Published online: 16 Aug 2014 *

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