Environmental costs in business sustainability. Proposal for its valuation and accounting disclosure

Abstract

The deterioration of environmental quality is an issue that every day acquires greater importance in the political and business environment worldwide. Under this logic, many companies have already shown interest in promoting the concept of sustainability and environmental results as an additional component for their financial information. However, when analyzing real facts, it is evident that there is no objective recognition of the full cost of the environmental impacts associated with the consumption of resources by companies. This situation is partly due to the lack of methodologies for assessment and the lack of government policies that regulate and encourage the recognition and internalization of these costs. That is why, from a study conducted with the collaboration of three entities representing the energy sector (EPM, ISAGEN, ISA), it is evidenced the business posture in relation to assessment, recognition and representation

of environmental costs in accounting and financial reporting of companies. The historical importance of this topic worldwide, the existing methodologies to assess such costs, its method of calculation, advantages and some details needed to encourage disclosure in accounting are presented.