Green economy
The concept of Green Economy is not a new concept, it was introduced in 1984 by Pearce, Markandya and Barbier in their book Blueprint for a Green Economy, where it is defined as “a system of economic activities related to the production, distribution and consumption of goods and services that result in long-term improvements in human well-being, without committing future generations to significant environmental risks and ecological scarcity ”(Vargas Pineda et al., 2017).
The economy and the environment currently achieve a high degree of interaction due to the environmental awareness of society, taking into account the damage that productive activities cause to the natural environment (Haidar & Berros, 2015).
That is why every day you hear more about this new concept of economy that, like green accounting and finance, seeks to generate a common good from the hand of nature.
Green Accounting
According to El Serafy (2002), green accounting, often called "environmental accounting", has targeted both natural resources and pollution. Its purpose is to maximize the profits of companies by reducing expenses, which consists of creating new techniques and systems in companies that help us quantify the environmental impact it has and thus generate value for both companies. as for society.
Green accounting is a method that took place at the summit that was held in Rio de Janeiro a decade ago and deals with both production and natural resources. It collects all the physical units or indices based on these physical units, which in turn are related to aspects of the environment either as source or supply. Despite the fact that these physical measures are very important to carry out green accounting, they are difficult to combine in a parameter that reflects the state of the environment and the deterioration of resources.
The use of environmental accounting in companies brings different benefits, these can be both internal and external:
- Internal: Financial impacts derived from savings in energy consumption and the use of natural resources External: It has a social and ecological impact, since it generates more environmentally friendly processes
It is a fact that green accounting guides companies to follow a path towards caring for the environment, however, as Mäler (1991, pages 1-2) writes in National Accounts and Environmental Resources that one of the fundamental criticisms against the The current framework of national accounting is that the change in the value of the stock of environmental resources is not included in the accounts. This is because the physical dimensions of natural resources are not known exactly. However, accountants cannot be far from the current problems, so they have to continue exploring ways that help the progress of this method.
Green Finance
Climate change and the sustainable development goals are being incorporated into the financial sector. The financial ecosystem has different agents such as banks and financial institutions, insurance, stock markets, owners and managers of assets, companies and the Government. The integration of policies that articulate the sustainability aspects of the Global Agenda are impacting the strategy, processes and operations of the financial sector. The different agents must understand why this transformation is being carried out, and the great challenges and opportunities that are arising from the new trends in environmental care (Chamochin, 2017).
Each sector has an impact on the global economy, each one performs a different task and focuses on caring for the environment also in a different way.
To mention an example, in Mexico on the Mexican Stock Exchange (BMV) we can currently find the sustainability index in which all the companies whose relevance has to do with their environmental, social and corporate governance performance are grouped (Galaz, Yamazaki, Ruiz Urquiza, 2012). They are companies that are recognized nationally and internationally for their sustainable practices, another of the characteristics by which they are identified is because they are companies with little risk as they better manage indicators.
According to Galaz, Yamazaki, Ruiz Urquiza (2012), there are some sustainable indices in other parts of the world that have been successful such as the Dow Jones Sustainability Index, FTSE4Good Series and Business Sustainability of the Brazilian Stock Exchange.
The importance of these indices is that investors are increasingly concerned about the environmental context in which we live, which is why they support companies whose projects seek to improve the use of natural resources.
For their part, banks, finance companies and the government seek to support new projects aimed at caring for the environment through financing that helps them make their ideas tangible, in addition to providing advice on how they can make their business be profitable.
Overall objective
The general objective of this research is to deepen the relationship that business areas have with the care and preservation of the environment. So we can see sustainability as a new form of profitability.
Introduction
The change in the use of natural resources and their consumption is being achieved through a change in the paradigm of people. Now we are not only thinking about satisfying the needs that we may have, but also seeking to create new ways that natural resources are used to the maximum without the need to harm them.
Despite all the efforts that are made every day to achieve an ecological balance, there are still many barriers that prevent us from reaching this, especially when there is an economic aspect involved. Since the industry needs to see ecology as a profitable way for it to be willing to adapt to new changes.
In ecology, sustainability is defined as the balance of a species with the resources of its environment. Therefore, this can be applied to any activity carried out by man that directly or indirectly affects his environment.
For this reason, the actions carried out by a company must incorporate the notion of sustainability in order to make its actions last over time and consolidate the company in the future. It is useless to exploit above the level of replacement a good or material known as finite if a period after it has ended and the company failed to obtain a substitute. Companies with no vision of sustainability for the future are destined to disappear. That is why, as we mentioned previously, new terms have emerged that help us see the relationship that business areas have with ecology.
Summary
The economic and environmental crisis comes from the same origin and are mutually reinforcing due to the current economic model, which seeks short-term benefits without considering ecosystems as scarce goods, nor the consequences that are generated on the environment and society (Cruz, 2016).
That is why this environmental crisis stems from the mismanagement of natural resources that is not only affecting the ecosystem in general and people, but also the global economy as mentioned above. In recent years, market trends have been geared towards caring for the environment in order to satisfy present needs without compromising future needs and their benefits.
Currently, new concepts have emerged that have emerged in the economic-administrative areas such as green economy, green finance and green accounting, which seek to promote greater economic benefits that go hand in hand with the preservation of nature.
Abstract
The economic and environmental crisis comes from the same origin and are reciprocally enhanced due to the current economic model, which seeks short-term benefits without considering ecosystems as scarce goods, nor the consequences that are generated on the environment and society (Cruz, 2016).
That is why, this environmental crisis derives from the mismanagement of natural resources that is not only affecting the ecosystem in general and people but also the global economy as mentioned above. In recent years, market trends are moving towards caring for the environment in order to meet current needs without compromising future needs and their benefits.
Currently, new concepts that have emerged in the administrative economic areas such as green economy, green finance and green accounting, which seek to promote greater economic benefits that go hand in hand with the preservation of nature, have become more important.
Key words: Global economy, Environment, Natural resources, Green Economy, Green Accounting and Green Finance.
Bibliography
- Chamochin, M. (2017). The link between finance, sustainability and energy. Bie3: IEEE Bulletin, (6), 965-1004. Cruz, PSC (2016). Natural resources in the economy: is green growth possible? Magazine Arbitrada Formación Gerencial, 15 (1), 25-50 El Serafy, S. (2002). Green accounting and Sustainability. 2019, from ICE Sustainable Development Website: https://upaep.blackboard.com/bbcswebdav/pid-9336433-dt-content-rid-29847022_2/courses/01_121_AFB210_01/contabilidad%20verde.pdfGalaz, Yamazaki, Ruiz Urquiza. (2012). Sustainability Index of the Mexican Stock Exchange. 2019, from Deloitte Website: http://www.earthgonomic.org/biblioteca/2012_DELOITTE_Indice_sustentabilidad_BMV.pdfHaidar, V. & Berros, V. (2015). Between sumak kawsay and "life in harmony with nature". THEOMAI Magazine.Critical Studies on Society and Development 32, 128 - 150. Mäler KG (1991): National Accounts and Environmental Resources, Environmental and Resource Economics, volume 1, number 1, pages 1-16. Vargas Pineda, OI, Trujillo González, JM & Torres Mora, MA (2017). The green economy: a necessary environmental and social change in today's world. 2019, from Magazine of agricultural and environmental research Website: http://hemeroteca.unad.edu.co/index.php/riaa/article/view/2044/2296de Revista de Investigación Agraria y Ambiental Website: http://hemeroteca.unad.edu.co/index.php/riaa/article/view/2044/2296de Revista de Investigación Agraria y Ambiental Website:
