Industry 5.0 increasingly promotes a development paradigm that emphasizes both growth and equitable distribution of natural and human resources. However, sometimes during expansion and in seek of potential profitability, we skip over details that involve environmental preservations.

One case discussed in Jared Diamond’s book Collapse (2005) explains that the downfall of several major civilizations was triggered by environmental instability caused by deforestation and pollution.

Indonesia, with its abundant natural resources, is not exempt from expansion and downstream development—particularly in the industrial and energy sectors. According to data presented in a journal published by Universitas Dian Nusantara (UNDIRA), the industrial sector contributes approximately 40.46% of total carbon emissions and industrial waste, making it a leading factor in environmental degradation.

This situation becomes increasingly concerning with the massive expansion of the mining sector, which has drawn public attention and raised concerns in other sectors such as tourism.

Fellow UNDIRA students, environmental preservation is enshrined in Law No. 32 of 2009, which outlines the principles of Environmental Protection and Management.

Beyond profit generation, environmental sustainability has become a key concern in today’s business and professional landscape. Business management should not solely focus on profitability or potential gains. To ensure long-term business continuity, it is essential to pay close attention to the surrounding environment.

Safety (K3) must also be implemented in environmental management and in safeguarding the welfare of local communities. In line with this, accounting science includes an approach that not only regulates financial efficiency but also calculates a company’s contribution to environmental preservation costs—commonly referred to as Green Accounting. According to Lestari et al. (2024), green accounting measures and reports financial information that incorporates environmental aspects into business activities.

Green accounting offers long-term benefits through financial allocation for environmental sustainability. Moreover, as a branch of accounting, it is grounded in the principles of accountability and transparency.

The implementation and mapping of green accounting can progressively bridge institutional interests by creating appeal through Corporate Social Responsibility (CSR). CSR programs aim to improve social, economic, and environmental welfare as part of a company’s strategy to enhance its image and relationships with stakeholders.

It is hoped that actions aligned with sound accounting principles and responsible policies toward environmental safety and public welfare will foster trust among stakeholders and the broader community.

Ultimately, stakeholder interest in environmental sustainability and detailed innovation will help drive the creation of a Green Economy—a cycle of environmentally conscious business practices that support surrounding life through innovation and reliable financial planning.

Source of References: 

Surpriatna, Jatna. et al. 2022. Sustainable Environmental Management: Lessons From Indonesia. Yayasan Pustaka Obor Indonesia. Perpustakaan Cikini

Mareta, Sigit. Et al. 2025. Pengaruh Penerapan Green Accounting, Corporate Social Responsibility dan Good Corporate Governance terhadap Profitabilitas (Studi pada Perusahaan Sektor Energi yang Terdaftar di BEI Periode 2019-2023). Universitas Dian Nusantara. 

(Danang Respati Wicaksono / Humas UNDIRA)