Environmental sustainability is not only a potential competitive advantage to an organization, but might also be a regulatory requirement. The creation of business processes to support environmental sustainability requires the expenditure of resources, and management is faced with evaluating the costs and benefits of such efforts. Chartered Professional Accountants of Canada in cooperation with the Consortium for Advanced Management International (CAM-I) offer guidance on using ABC/M to help make better decisions regarding managing the costs of environmental sustainability. Read their guidance and then answer the following questions. The guidance can be found at https://www.cpacanada.ca/en/business-and-accounting-resources/management-accounting/cost-management/publications/environmental-sustainability-a-two-part-series/ environmental-sustainability-guidance.

Required

1. What is the purpose of environmental sustainability cost accounting, and why is it important?

2. How can ABC/M help support the analysis of an organization’s greenhouse gases (GHGs)?

3. What are some of the characteristics that help determine how well prepared an organization is to begin using ABC/M to monitor and evaluate GHG emissions?