A STUDY

ON GREEN ACCOUNTING
AND
ITS ENVIRONMENTAL
BENEFITS
“
 DECLARATION

We hereby declare that the project entitled “GREEN ACCOUNTING” submitted by us in

partial fulfillment of the requirement of the M.com program of ICFAI university Meghalaya
is originally done by us and no part of or whole of it has been submitted to anywhere for
any purpose and is based entirely on our observations. The facts present here are true
based on our own knowledge.

Submitted by:

EWAN GASHNGA
TEILARITY KHONGSIT
TEILARYMPEI WAHLANG
JAMTIHUN L KYNSHI
IBANKYNTIEW KHARKRANG
PHERLINDA RYNTATHIANG
SIXBIRTH CH. MOMIN
FACULTY GUIDE

MA’AM REVEKA KHAN

 CONTENTS
•INTRODUCTION
•HISTORY
•OBJECTIVE
•ADVANTAGE
•DISADVANTAGE
•METHODOLOGY
•DATA ANALYSIS
•SWOT ANALYSIS
•FINDINGS
•RECOMMENDATIONS
•CONCLUSION
Environmental accounting/green accounting is an
important tool for understanding the role played by the
business enterprise in the economy towards the
environmental safety and welfare. It provides data
highlighting both the contribution of business enterprise
to economic wellbeing and the cost imposed in the form
of pollution degradation “Green accounting is a type of
accounting that attempts to factor environment cost into
the financial result of operation. It has been argued that
gross domestic product ignores in the environment and
therefore decision makers need a revised model that
incorporate green accounting” Green accounting term
was first brought into common usage by economist
“PETER WOOD” in 1970. India’s former environment
minister Mr. JAIRAM RAMESH first time stressed the
need and importance to bring accounting practices to the
forefront of accounting in India.
• Statement of Green Implement in
Meghalaya(M.G.M)
• Green Mission
• Its Objectives
• Primary focus of Green Mission
• To evaluate the green accounting
• To examine and compare with various
banking sector.
• The benefits of technologies.
• Essential awareness to the bank.
• Their services that they provide
•Provide Useful information
•Manage Acquisitions
•Contribute to a better
management
•Identifies and Analyse the
environmental cost
•Measure the Environmental
problems
• There is No standard
accounting method.
• Comparison between
the Bank is Different.
• The Cost of its tools and
Application is high.
• It is a long term
process.
 METHODOLOGY ADOPTED DURING THE PURSUE OF THIS
RESEARCH WAS THROUGH RANDOM SAMPLING METHOD WERE BY
A SAMPLE SIZE OF QUESTIONAIRE WAS TAKEN. THE STUDY WAS
EMPIRICAL IN NATURE CONDUCTED THROUGH A STUCTURED
SCHEDULED BASED ON WHICH PERSONAL/QUESTIONAIRE HANDED
TO THE BANKS WAS CONDUCTED. APART FROM THIS SEVERAL
SECONDARY SOURCES OF INFORMATION WERE ALSO INTO
ACCOUNT TO GET THE ACCURATE FACT AND FIGURE RELATED TO
THE STUDY.
•DATA SOURCE:
•PRIMARY SOURCES:
•QUESTIONAIRE
•PERSONAL INTERTHE VIEW
•SECONDARY DATA:
•WRITTEN DOUCUMENT
•INTERNET
 COMPANY PROFILE
 Name of the various banks that we have visited:
State bank of India (GS ROAD, SHILLONG)
VIJAYA BANK (LAITUMKHRAH, SHILLONG)
CENTRAL BANK OF INDIA (LAITUMKHRAH, SHILLONG)
BANK OF INDIA (MAWLAI, SHILLONG)
MEGHALAYA CO-OPERATIVE APEX BANK (MAWLAI, SHILLONG)
PUNJAB NATIONAL BANK (PB, SHILLONG)
INDIAN OVERSEAS BANK
ICICI BANK (GARIKHANA, SHILLONG)
INDIA POST PAYMENT BANK (GS ROAD, SHILLONG)
FEDERAL BANK ( GS ROAD, SHILLONG)
UNITED BANK OF INDIA (GS ROAD, SHILLONG)
YES BANK (KEATING ROAD, SHILLONG)
SOUTH INDIAN BANK (GS ROAD, SHILLONG)
KOTAK MAHINDRA BANK(GS ROAD, SHILLONG)
ORIENTAL BANK OF COMMERCE (GS ROAD, SHILLONG)
UCO BANK (GS ROAD, SHILLONG)
CANARA BANK (GS ROAD, SHILLONG)
SUGGESTION GIVEN BY BANKS
Plant trees
Emphasize on the environmental education in
schools, colleges, universities etc.
Use less paper
Making people aware about the environment
Avail non branch mode of transaction
Use as much as digital banking product
All the work in banking sector do only by digitally
(no more paper work)
People must aware and cautious about the
environment.
Q1. FROM YOUR POINT OF VIEW WHAT DO YOU UNDERSTAND BY THE
WORDS “GREEN”
A. Environmental friendly
B. To go online banking instead of branch banking
C. To help customer access at home for any transaction
D. To minimise the usage of paper money

80%
60% A
60% 47% B
40% 29%
18%
C
20%
D
0%
A B C D

From the above analysis, we learned that 60% of the bank understand
that the word GREEN is to go online instead of branch banking
 Q2. IN WHAT FORM IT WAS ADOPTED?
A. INTERNET BANKING B. ATM CARD
C. GO ONLINE D. SWIPE

19% 29% A
B
19%
C
33%
D

From the above analysis we seen that 33% of the bank

adopted technology in the form of ATM CARD, 29% in the
form of INTERNETBANKING, 19% in the form of GO ONLINE
&SWIPE.
Q3. WHAT DO YOU THINK THE COST OF ENVIRONMENTAL ACCOUNTING AND
REPORTING WOULD INEVITABLY BE?

A.VERY HIGH B. HIGH C. LOW D. VERY LOW

60%
50% A
40%
30% B
56%
20%
25% C
10% 19%
0%
A B C
0%
D
D
From the above analysis, we have seen that 56% of the bank
think that the cost of environmental accounting and
reporting would inevitably be high.
Q4. WHICH TYPE OF TECHNOLOGY OR MODE WHICH IS MORE
CONVENIENT FOR THE SAFETY OF ENVIRONMENT OR WHICH ARE
ECO-FRIENDLY?
A. ATM B. INTERNET BANKING C. GREEN
CHANNEL COUNTER D. CHEQUE

13% 3% 18%
A
B
C
66% D

From the above analysis, we seen that 66% of the bank are more
convenient in INTERNET BANKING for the safety of environment.
 .

Q5. IS THERE ANY RULES AND REGULATION THAT WAS

PROVIDED BY THE POLLUTION CONTROL BOARD OF
SHILLONG FOR THE SAFETY OF THE ENVIRONMENT TO
BANKING SECTOR?

A.YES B. NO
100%
80%
60% A
40% 92%
20% B
0% 8%
A B

From the above analysis, we seen that 92% of the bank states
that there is no such rules and regulation was provided by the
POLLUTION CONTROL BOARD OF SHILLONG for the safety of
the environment to banking sector
• STRENGTH: Most of the banking sectors are interested in getting involved in
activities concerning the environment. It is a current field which has a special
dynamic. Currently in marketing there is a strong competition on the cleanliness
service market. It helps to reduce the cost of the banks. It provides the customer
more easy and quicker facilities.
• WEAKNESS: The manager does not understand the importance of the green
accounting yet. Many of the banking system are not fully adopt the green accounting.
There are untrained personnel in the field of green accounting in banks. There is still
lack of effective and efficient network facilities. Many of the customers are not aware
with the importance of green accounting.
• OPPORTUNITIES: The perspective of the need of greater number of workers in the
green accounting in a very coming future. the possibilities to bring new and advance
technologies and equipment. The possibilities to attract foreign investment
. • THREATS: There are several difficulties in introducing green accounting to bankers
as well as customers. It needed a significant budget in order to apply green
accounting and the benefits are not obtained immediately. The correspondent
legislation is very little as compare to the other jobs.
1. Most of the banking sectors are focusing on environmental issues. Size of the
companies and profitability of the companies appear to have most significant impact
upon the extant and amount of environmental disclosure.
2. Banking sector understand their responsibility towards the environment. So, they
adopt the green accounting to reduce the use of pen and papers to save the
environment.
3. The banking has been trying to develop green accounting system by implementing
digital accounts to their customer. The idea of adopting digital account is to measure
the value of clean water, clean air, forest and ecosystems in addition to traditional
measures of the market value of a country’s goods and services.
4. Most of the banking sector which is set up in the states adopted green accounting in
the form of digital account in early 20th century.
5. The lack of valuation for natural resources in the environment is one of the major
reasons for continuing decline of ecosystem. So, the banks are aimed at helping
countries develop and implement natural accounting systems.
6. Digital marketing enable the banking sector to move beyond simple touch-points to
creating ongoing relationship with their customers.
7. It gives more convenient to the customer through the service of chat and social
media, offering personalization, ease of use and online application or account
management.
8. These give the banking that tools to automate marketing tasks.
Suggestions play a very crucial role it is the outcome of the study that helps to identify
the success of the research carried out. The following are the suggestions given that
would help to improve Green banking activities in BANKING SECTOR. There is lack of
awareness about Green Banking among most of the people and hence the bank should
create awareness to know the benefits of green banking and to uSse internet banking
and mobile banking as majority of the customers do not know to use it. A separate cell
must be formed to guide the customers to carry out the transactions in an eco-friendly
manner. Frequent meetings with customers must be planned and in order to know their
suggestions and satisfaction level .A practice of rewarding the customer must be
initiated, this would encourage the customer to participate in the program. Mass
education programs on Green Banking are must be organized by the banks as
awareness cum promotional program. And further they added that the green banking
has to be included as in the curriculum or an activity from the school and college level
studies. The terms and conditions and the method of usage of mobile banking and
internet banking must be mentioned in regional language too
Introduction of various Green Banking products alone is not sufficient in creating a
better environment. The success lies in making sure that those products are utilized
in a proper way. GREEN BANKING is the corporate social responsibility of every
bank. Along with the focus on the GREEN BANKING initiatives the bank should also
take care of their lending policies so that the customers are encouraged to carry out
not only their banking transactions but also their business transactions in an
environmental-friendly manner. The initiatives taken by the Indian banks are
appreciable but when compared globally, they are lagging behind. In order to
improve and enhance the green banking activities the bank should acquire the
support of the Government, NGOs, business organization and the consumers. The
Banks should not be satisfied with the current green banking product they possess.
They must continuously be involved in introducing innovative product for their
benefit and the society as well. Primarily, banks are creating awareness about
environmental issues through green banking among bank staff, customer and mass
people. Gradually, banks green banking activities have shifted from encouraging
and implementing of e-banking to the recycle of the wastes, water treatment
plants, rain water harvesting, using solar based equipment, constructing green
building etc. in more effective manner. ` `