Accounting for Sustainability

What's a common issue that frequently makes headlines these days? Pollution undoubtedly tops the list.

In fact, pollution in Jakarta has escalated to the point where we've earned the dubious distinction of having the worst air quality index in the world. The air quality index here has soared to 165, well beyond the recommended limit of 100. If you gaze out your window in Central Jakarta, you're more likely to see a dreary grey sky than a clear blue one. This dire situation has also led to a surge in respiratory infections, flu cases, and more.

In response, the government is preparing a tax aimed at companies that contribute to environmental pollution. This tax, known as "Pajak Pencemaran Lingkungan," is poised to make companies rethink their environmental impact.

This is where sustainability accounting steps into the spotlight. According to the American Institute of Certified Public Accountants (AICPA), sustainability accounting involves connecting sustainability efforts to a company's strategy, assessing risks and opportunities, and providing the tools for measurement, accounting, and performance management. In essence, it's not just about a company's financial health; it's about understanding the risks, opportunities, and the company's sustainability.

Speaking of sustainability, businesses are increasingly embracing the Triple Bottom Line (TBL) concept, which focuses on Profit (Finance), People (Social), and Planet (Environment). The goal is for companies to operate sustainably.

The world is shifting towards greater appreciation for people and the environment, and the business world is no exception. Starbucks Corporation is a prime example. When you step into a Starbucks store, you'll notice their emphasis on reusable and environmentally friendly items. Starbucks is also renowned for prioritizing its employees' well-being.

If you're interested in accounting and want to make a positive impact on the environment, exploring sustainability accounting with UNIJI could be the right path for you. It plays a crucial role in shaping the future of accounting and allows you to make a meaningful difference in your environment.

Reach out to our counsellors to learn more, and we'll look forward to welcoming you at UNIJI.

 

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