Environmental Management Accounting Procedures and Principles

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Environmental Management Accounting Procedures and Principles Emissions 29kg/$180 Material Purchase 100kg/$1000 Product 12kg/$390 Waste 43kg/$410 Waste Water 16kg/$20 Figure 18. Material and money flows in a paint shop Source: Dimitroff/Jasch/Schnitzer, 1997. During their first environmental review, companies mostly draw up a screening material flow balance and do not go into much detail. On this basis, knowledge is gained on where to focus to achieve improvements in performance and information gathering. By improving the quality of the information available and the consistency of information systems, a regular monitoring system can be established. This monitoring system shows resource input and production and waste output on a monthly basis. As a next step, the material flows can be subdivided further according to processes and cost centres, and they can then also be subjected to monetary evaluation. Figure 18 shows the generally applicable structure of the input-output balance at the corporate level, which should also be used for environmental reporting. Specific subcategories will be needed for different sectors, but, it should always be possible to aggregate in a standardized manner, in order to be able to compare them. Reclassifying accounting data after initial entry is often impossible and always time-consuming and costly. Hence, the secret of success in all areas of accounting, including EMA, is to capture any information necessary for later analysis at the time when the data is entered. Modifying existing systems can also be costly, but environmental considerations can often be built in when the system is adjusted for other reasons. -42-
Environmental Management Accounting Procedures and Principles INPUT in kg/kWh Raw materials Auxiliary materials Packaging Operating materials Merchandise Energy Gas Coal Fuel Oil Other Fuels District heat Renewables (Biomass, Wood) Solar, Wind, Water Externally produced electricity Internally produced electricity Water Municipal Water Ground water Spring water Rain/ Surface Water OUTPUT in kg Product Main Product By Products Waste Municipal waste Recycled waste Hazardous waste Waste Water Amount Heavy metals COD BOD Air-Emissions CO2 CO NOx SO2 Dust FCKWs, NH4, VOCs Ozone depleting substances Figure 19. General input/output chart of accounts The input-output balance at the corporate level is drawn up on an annual or a monthly basis and is linked to the bookkeeping, cost-accounting, storage and purchase systems. All material flows should be listed with their values and amounts per year. The roll-over scheme for the material flow balance should therefore record the amounts in kilograms, the values and the corresponding accounts. In addition, it should indicate whether materials are registered by material stock number and whether there is inventory management. It should also indicate whether there is consumption based stock withdrawal according to cost centres. As the first step in setting up the materials input-output statement at the corporate level, quantitative data are collected from the accounting and stock-keeping systems. The accounting system offers annual data on input into the company as a whole, as well as some of the output (if it is paid for). All materials purchased during a year must either leave the company as a product, as waste or emission or are stored on site. Figure 19 shows the environmental roll-over scheme for the materials input-output statement. A check mark indicates the likely source of the data or which records are likely to be available. The objective should be to improve the recording of material flows gradually with a step-bystep procedure. There is no point in being complete in the first year, the goal is to gradually -43-
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