Best Practices - Environmental Accounting


... The Environmental Accounting for public organizations

IFM acquired deep expertise in accomplishing that complex set of consultancy and technical activities, software delivery and multimedia documents production, identified as Environment Accounting. Many entities operating within Local PA area (municipalities, provinces, mountain communities, sea parks, etc.), to build its own Environment Accounting, requested IFM's services which were delivered as a ready-to-go package.

Environment Accounting and related reference system can be a strong decision support for public organizations in order to achieve targets of social communication and programming and control actions addressed to monitoring and evaluating policies about sustainability and urban life quality.

Below are listed the main targets that an organizations can pursue, if equipped with a programming and control tool oriented to environmental issues:

• measuring and evaluating natural environment changes and impacts generated by anthropic activities, by defining a physical accounts plan and, thus, an environmental indicators set
• accounting and evaluating, through detection of environmental expenses, economic and financial flows referred to the use of natural resources and to the effects of interaction between Man and Environment
• supporting, at a local level, programming and management of environmental policies
• making territorial information actions
• making territorial awareness activities
• supporting meetings organization and advertising activities according to accurate policies and procedures suggested by public Entity
• promoting public Entity activity through paper, digital and broadcasting tools

In order to support the whole design flow, IFM supplied City-Budget Professional as a software solution: it can collect all multiple information sources that contribute to define Entity's environmental policies, can process associated contents and supplies all control and reporting tools required to build a full Environment Accounting.

City-Budget can acquire accounting data from whatever accounting software, through specialized extraction programs; in this respect, its natural partner is City-Financing module, as to highly integrated with City-Budget.

IFM's services manage the Environment Accounting's building as a process that follows ISPRA (Institute for environment protection and research) guidelines, that can be split in the following main stages:

Preliminary stage: briefings with administrators and managers in order to design and define operational plan and map's arrangement of all involved actors

Implementation of the process of Environment Accounting building:

• definition of environment context frame
• definition of array of competences
• definition of recording structure
• definition of array of environmental policies
• definition of the account of environmental expenses
• definition of the account of physical indicators and of completed works


• definition of the account of eco-effectiveness indicators
• definition of the account of eco-efficiency indicators
• production of budget environmental accounting