Environmental Management Accounting Procedures and Principles

Environmental Management Accounting
Procedures and Principles
trace materials as completely and consistently as possible, in storage administration, cost
centres and in production planning.
Tracking matrix for
material flow balances
Amount in kg., KWh, l
Purchase value
Raw materials √ √ √ √ √ √ √ √ √
Auxiliary materials √ √ √ √ √ √ √ √ √
Packaging √ √ √ √ √ √ √ √ √
Operating materials √ √ √ √ √ √ √
Energy √ √ √ √ √ √
Water √ √ √ √ √
Product √ √ √ √
Waste √ √ √ √ √
Wastewater √ √ √ √ √
Air emissions √ √ √ √
Figure 20. Tracking matrix for material flow balances
Account number
Material stock number
Stock-keeping
Production planning system
Direct costs
Overhead
Assigned to cost centre
Other records/measurements
Calculation/estimates
In order to compile an I/O (input-output analysis) of material flows, it is best to start with the
accounts in the list of balances of conventional bookkeeping. Only this list provides a
complete overview (in monetary terms) of purchased raw materials, auxiliary and operating
materials in a given month or year and what was paid for disposal, repairs, insurance,
transportation etc. Each account of the profit and loss statement should be examined to
determine whether any environmentally relevant movements or material flows may be
recorded there. Personnel costs are not considered in a material flow balance.
The focus is on account class 5, which records the quantities of materials used. A second
significant factor is costs and earnings in relation to the use and disposal of waste and
emissions. The data determination will suggest ways for how to structure the accounts in the
list of balances better.
Based on the I/O scheme in figure 18 and the accounts of the list of balances, a first
breakdown for the I/O should be done and other company information sources identified. After
the first breakdown of material flows in monetary terms, the respective kilogram values need to
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