What type of sustainability accounting focuses on long-term environmental impacts?

Environmental performance accounting specifically focuses on the long-term impacts that an organization's activities have on the environment. It involves measuring and reporting the effects of those activities on ecological systems, such as air and water quality, biodiversity, and resource depletion. This type of accounting goes beyond financial figures to consider how operational decisions influence the environment over extended periods, thus emphasizing sustainability in terms of ecological preservation and compliance with environmental regulations.

By concentrating on long-term environmental impacts, this methodology aids organizations in recognizing the significance of sustainable practices and encourages them to make decisions that minimize harm to the environment. It provides crucial insights for stakeholders who are interested in an organization's environmental footprint and assists in the strategic planning necessary for sustainable development.

In contrast, other types of accounting mentioned focus on different aspects. Social impact accounting emphasizes the social implications of business practices, while sustainability performance accounting generally encompasses a broader range of sustainability measures, and financial performance accounting prioritizes economic metrics over environmental considerations.