Environmental Accounting is the neo-traditional accounting system by which businesses can reduce costs by analyzing expenditures in the production process. Successful businesses realize that waste from their plants is lost profit. By using environmental accounting techniques, companies determine where to adjust production or substitute materials to maximize environmental cost savings, which in turn simplifies compliance with environmental regulations.

Energy costs, for example, are traditionally factored in as a component of other issues, such as cost of manufacturing, environmental compliance, safety or productivity. By linking the costs of pollution prevention and energy efficiency, and by demonstrating how using resources more efficiently can minimize costs, DEP has strengthened the environmental accounting case to management.

Environmental accounting activities for 1997 centered on programs undertaken by DEP's six regional offices.  Presentations were made to business roundtables, businesses, muncipalities and colleges and universities to educate them about the prinicipals of environmental accounting.

Trade associations, such as the Keystone Chapter of the Institute of Management Accounting (IMA), offer publications addressing environmental accounting topics, such as Statement Number 4Z dated July 1, 1996, entitled Tools and Techniques of Environmental Accounting for Business Decisions.  Workshops called "Implementing Coporate Environmental Strategies" are also offered.  The Pennsylvania Institute of Certified Public Accountants (PICPA) includes environmental accounting topics in its annual program.