Green accounting is a type of accounting that attempts to factor environmental costs into the financial results of operations. It has been argued that gross domestic product ignores the environment and therefore decision makers need a revised model that incorporates green accounting. The term was first brought into common usage by economist and Professor Peter Wood in the 1980s. The performance of an Organization is now being judged not only on the basis of its financial results, but also with regards to its contribution to protect and improve the environment. Environmental issues have become an important variable in the models used by the investors and creditors to determine the risk associated with their investment. In the evolving scenario, the need for accounting and reporting on the environment has been largely felt. As a result accounting of environmental issues and their disclosure in the environmental issues and their disclosure in the annual reports or by other medium has became an important part of corporate accounting and reporting systems.