Water management accounting: A framework for corporate practice

Abstract

Water initiatives for business and in business have ballooned in the 2010's because of concerns over increased uncertainty surrounding water supplies as well as competing demands. The challenge is how to improve accounting given the lack of available granular data on which companies can base their business decisions about water scarcity, water surpluses and water management opportunities. Corporate Water Management Accounting is a recently proposed extension to Environmental Management Accounting designed to support corporate management decisions and improve both economic and environmental water-related business outcomes. The paper identifies relevant water accounting information for decision making is lacking in current literature and water initiatives, which focus on external water reporting. In the light of the finding strengths and weaknesses of water initiatives are assessed and a new framework developed for Water Management Accounting. Based on both the literature and gaps in current water initiatives, the paper concludes with a set of specific research issues in corporate water accounting settings along with ways in which water accounting researchers can contribute to the future management of water by businesses.