Sustainability accounting is a very important tool which is used by many organizations in order to achieve sustainable development. Sustainability accounting is known as social and environmental accounting. It affects the organization as well as the environment on a broader perspective . The main focus of sustainability accounting is to disclose the non- financial information about a specific organization to the external market. The market mainly comprises of stakeholders, authorities and creditors.
The main objective of sustainability accounting is to help the organization to make internal decisions which will have effect on social and economic level. The concept of sustainability accounting originated around 20 years ago. The use of sustainability accounting ensures that the organization using the measures is able to attain economic, social as well as ecological growth. In simpler terms, sustainability accounting can be described as the environmental and social accounting .
There are guidelines which underline the objective of sustainability accounting. The guidelines mainly include reporting on the environmental, social and economic performance of an organization. Sustainability accounting mostly helps the sustainable and environmental growth of a company. It basically recognizes the crucial role played by the financial information and uses it to extend the organization on an environmental level.