Relevant costs will show future profitability and what actions can be taken to reduce these environmental costs.
Environmental costs should be viewed either as the costs of environmental protection or as the cost of material and energy flows that could be reduced through an increased level of environmental protection.
Many businesses nowadays have started undertaking the implementation of sustainability into their operations; the main question is, why is there a sudden prominence being paid to sustainability, within the business world? A business may have many reasons as to why they may wish to promote sustainability.
A manager of a company may feel as though they are morally obligated to help save the environment; therefore, by implementing sustainability he is able to do just that (Friendman, 1970).
In this case, a non-sustainable company will not survive for very long if they do not meet the needs of stakeholders who themselves are sustainable and have a significant stake in the company.
Sustainable businesses will also have the luxury of receiving tax incentives (Bebbington, Unerman & O' Dwyer, n.d.).
Implementation of environmental accounting practices; alongside eco-efficiency, is vital to successfully achieve sustainability (Bebbington, Unerman & O' Dwyer, n.d.).
Environmental accounting principles strongly influence the decisions of managers because it takes into consideration relevant costs.
A sustainable business will also have an easier access to grants and loans; many other environmental organisations or institutes will provide businesses with loans and grants in order for them to become more sustainable. As you can see, most; if not all, of the above advantages of being sustainable result in an increase in cash for the business.
it seems that businesses have started to become more sustainable as a means to save money, the ability to save money by being sustainable is an incentive for managers and the like. However, not all companies have decided to implement sustainability yet.