This metric is based on the Global Reporting Initiative (GRI) G4 Guidelines. It covers one of the requirements of Indicator G4-EN31​ - 'Total environmental protection expenditures and investments by type'

​Measuring environmental mitigation and protection expenditures allows organizations to assess the efficiency of their environmental initiatives. It also provides valuable input for internal cost-benefit analyses. Data on environmental performance measured against environmental mitigation and protection expenditures offers insights into how effectively the organization uses resources to improve performance. When tracked and analyzed in a comprehensive fashion over time, this expenditures data allows the organization to judge the value of complex organizational or technological investments for improving environmental performance.

It is possible to establish a full environmental management accounting system within an organization that tracks multiple categories of information. This Indicator focuses on waste disposal, emissions treatment, and remediation costs, as well as prevention and environmental management costs.