As business begins to face up to its environmental responsibilities there is an essential role for accounting. Accounting is the principle measure of corporate success but takes little, or no account of environmental impacts. Indeed, any organisation relying exclusively on its accounting systems to guide its progress would be maximising its environmental damage – not reducing it. Too often the signal provided by the environmental management system and by accounting – whether the bottom line on the profit and loss account or the information provided for management decisions – will point in opposite directions. Research by the Centre for Social and Environmental Accounting Research is now exposing this problem and beginning to offer solutions.