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Über dieses Buch

This is the third volume in the Environmental Management Accounting Network (EMAN) series of selected refereed papers on environmental management accounting drawn primarily from papers presented at EMAN-Europe's annual c- ferences. Most of the papers in this volume were ?rst presented at the 6th EMAN- Europe Annual Conference at the Aarhus School of Business, Denmark, on 23-24 January 2003. The focus of the conference and the papers presented was on implementation of Environmental Management Accounting. That is to say what challenges there are in getting EMAto work in companies, how governments are promoting EMAand how EMA can be supported by for instance IT. From the papers in this volume it can be seen that EMAis becoming more established as a ?eld of practice as well as an a- demic endeavour. EMA is no longer the sole interest of large multinational c- panies but is being adopted by SMEs as well as being promoted by various gove- ment agencies. EMAN has continued to play an important role in this development by providing a medium through which those interested can contact others with similar interests, and by organising regular events for the dissemination and exchange of news and ideas. EMAN aims to provide a forum in which academics and practitioners can meet to exchange and share ideas and experiences, and this has guided the selection of these papers which include both academic papers grounded in the relevant literature and with reference to theory as appropriate.




Environmental Management Accounting: Innovation or Managerial Fad?
Without Abstract
Pall Rikhardsson, Martin Bennett, Jan Jaap Bouma, Stefan Schaltegger

Ema Progress

Chapter 2. Challenges for Environmental Management Accounting

Environmental management accounting (EMA) is concerned about the accounting needs of managers in relation to corporate activities that affect the environment as well as environment-related impacts on the organization. This paper provides an overview of a range of challenges faced by EMA.
Roger L. Burritt

Chapter 3. Current Trends in Environmental Cost Accounting — and Its Interaction with Ecoefficiency Performance Measurement and Indicators

This paper provides an overview of current trends, state of the art and best-practice in environmental cost accounting as well as a discussion of how it complements environmental performance and eco-efficiency indicators. It addresses a number of current approaches to ECA. Amongst others, these will refer to the evolution of and experiences with ECA in companies, such as activity-based costing, process costing and target costing. The trend in cost accounting towards relating costs to material flows and related environmental impacts calls for indicators of integrated economic and environmental performance measurement, so-called eco-efficiency performance measurement.
The complementarity of ECA with environmental performance indicators (in particular eco-efficiency indicators) and environmental performance measurement also needs to take into account the integration of ECA and performance measurement into controlling and operations. Therefore, the paper will also discuss how ECA and environmental performance indicators can be integrated into decision-making. The paper and performance measurement approaches for decision-making under different firm-level operating conditions.
Stefan Schaltegger, Marcus Wagner

Chapter 4. Environmental Accounting Dimensions: Pros and Cons of Trajectory Convergence and Increased Efficiency

Three dimensions of physically based environmental accounting are indicated — regional, company and product accounting — these have developed along different paths. In the globalised and highly specialised economy of today, company activities and their services are multinational and are to a decreasing degree to be seen as a subset of regions. Consequently, these accounting practices intersect each other, on three dimensions, from micro to macro levels. Even though they are all based on physical and energy input/output (I/O) analysis the differences in terminology, structure and evaluation methods make it difficult to exchange data and use them efficiently. This paper explores several aspects of these three environmental accounting dimensions such as the control engineering tradition, the lack of adequate data and the resource consuming work as well as incompatibility, overlapping scopes and aims. The conclusion is that the three accounting dimensions are similar in construction in spite of a development in independent paths. The differences are not primarily the three-letter acronyms of the tools but the objectives and control scope used in studies. If adopting a common framework and a global all-dimensional nomenmore sustainable.
Pontus Cerin, Staffan Laestadius

Chapter 5. Process and Content: Visualizing the Policy Challenges of Environmental Management Accounting

This chapter argues the policy challenge of environmental management accounting is getting decision-makers to understand they are dealing with a mess: a situation where disagreement and uncertainty exists. Finding shape and structure in messy situations is a pre-condition to designing and implementing effective policy. Visualising communication processes between policy makers and takers, and the content transmitted between them, supports the search for shape and structure. A series of images on process and content aspects of environmental management accounting are presented. Five images place secondary data into theoretical constructs of classical diffusion theory. Collectively, the images on communication processes and their consequences show that relying on top-down innovation through mass media distribution of advisories is ineffective in achieving widespread pro-environmental behaviour. Two images are then presented in a search to place environmental management accounting within a mapping on the causes and effects of management accounting. A tenuous link with research on how environmental uncertainty affects accounting policy choice is identified. But mainstream accounting and management conventions with respect to environmental uncertainty typically focus on environmental matters that exclude nature. Hence process and content images on environmental management accounting presented here illustrate the disagreement and uncertainty characteristics of a mess. Forming and implementing effective policy is not possible in a messy situation.
Dick Osborn

Exploring EMA Implementation Issues

Chapter 6. Environmental Performance and the Quality of Corporate Environmental Reports: The Role of Environmental Management Accounting

This article analyses and discusses whether there is an association between environmental performance and corporate environmental reporting in the paper and electricity industries in Germany and the United Kingdom and what the influence of environmental management accounting is on this link. After discussing environmental performance measurement and environmental reporting in general, the chapter introduces a measurement framework for both as the basis of an empirical study. Subsequently, the major empirical findings from a cross-sectional survey of corporate environmental reports and environmental statements as well as environmental performance indicators for air and water emissions in the above industries and countries are reported. These findings suggest that consistency between environmental performance and environmental reporting (operationalised empirically in terms of statistical correlation) is relatively rare, although (as is argued in the article) future credibility of companies will most likely depend on it. The findings also reveal that environmental performance tend to be linked to country location whereas quality of corporate environmental reports tend to be associated to sector membership. The chapter attempts an explanation of this, relating the findings to differences in environmental legislation in both countries. It concludes with implications for the use of environmental reports by third parties as well as a number of recommendations, especially concerning the need for more standardised indicators and reporting procedures.
Marcus Wagner

Chapter 7. Environmental Risk Management and Environmental Management Accounting — Developing Linkages

Frameworks for environmental management accounting refer to a number of tools that assist managers to address the environmental effects of their businesses. One area that has not received systematic attention is the link between environmental management accounting information and risk (and environmental risk) management. As a step in this direction the paper, first, reviews risk management and environmental risk management while developing five research questions related to disclosure of information by Australian Commonwealth public sector entities; second, details the research method and sample of public sector entities examined for the four-year period 1999–2002; third, considers the empirical results. These show an increasing level of disclosure and greater disclosure by non-budget entities. The paper draws conclusions and discusses possible future research opportunities in the context of links between environmental management accounting and environmental risk management.
Roger L. Burritt

Chapter 8. Using Software Systems to Support Environmental Accounting Instruments

In the past 25 years various information instruments for environmental management have been developed. Some of them focus on the production process and hence can be called “process oriented”. The most important process-oriented instruments are corporate input-output balance, Environmental Performance Indicators and methods of flow cost accounting. They are described and compared in this paper. Benefits for the use of the different instruments are shown. For a continuous use of Environmental Accounting Instruments in day-to-day environmental management, these instruments need to be supported with modern information technologies. This paper shows IT strategies on how to integrate Environmental Accounting functionalities into a Business Information System, which are discussed and partly supported by results from two surveys. The benefit of a structured approach to develop and integrate Environmental Accounting functionalities into a Business Information System is shown. A process model for the IT implementation of Environmental Accounting instruments taking into account the integration into existing business software is presented based on the prototype model. The nine phases of the model are described and discussed. A case study at the glass manufacturing company SCHOTT Glas shows how Environmental Performance Indicator Systems can be implemented in SAP R/3 and in ERP Systems in general. The findings presented here are results from the research project INTUS1.
Claus Lang, Daniel Heubach, Thomas Loew

Chapter 9. Applications of an Environmental Modelling System in the Graphics Industry and Road Haulage Services

Environmental management is an increasingly important part of strategic management in companies, and the significance of environmental issues is increasing in business worldwide as companies form large global networks. The environmental pollution caused by industrial countries — especially air emissions — is a topic of global concern, but environmental debates often focus on finding the guilty companies instead of suggesting schemes for preventing environmental harm. Companies and administrators should aim to develop their environmental decision-making; to this end, the environmental modelling system and its applications presented in this article have been designed to identify, analyse, manage and report environmental factors in relation to operational and financial functions in business processes. The model addresses the process, environmental and financial aspects of operations on the basis of process management, environmental management and environmental business accounting. The model can also be used to determine alternatives for cost-effectively improving environmental performance. The environmental modelling system enables a company to:
Identify key environmental aspects of operations.
Analyse, manage and report current environmental performance
Determine the relationship between pollution abatement measures and internal environmental costs and investments
Compare alternatives for cost-effectively decreasing environmental loads generated by business
Tuula Pohjola

Chapter 10. Implementing Environmental Cost Accounting in Small and Medium-Sized Companies

As a result of increased corporate environmental costs since the 1970s and steadily rising costs and innovation pressure in globalised competition, corporate environ-mental cost accounting (ECA) is continuously under attention. Cost management decisions — and ensuing entrepreneurial decisions — will increasingly depend on successful acquisition and transfer of information and data that consider ecological as well as economic effects. Sustainable future-oriented corporate governance will not function without an ECA to support the planning, management and control of the company.
Within the framework of the project Integration of ECA into environmental management systems in SME’s sponsored by the German Federal Foundation for the Environment (Deutsche Bundesstiftung Umwelt — DBU), Osnabrück, ECA was successfully implemented in more than ten companies. The project was carried out in co-operation between the Institut für Ökologische Betriebwirtschaft (IöB), Siegen, and the Internationales Hochschulinstitut (IHI), Zittau, both Germany. The objective of this project was to show economic and ecological advantages of, but also barriers to, ECA implementation by examples of German companies on the one hand and Czech and Polish ones on the other. The selection criteria as regards the companies were on one hand the size of the enterprise and on the other the willingness of management to implement an ECA. The project was especially focused on the operational use in SMEs and represents a further development of existing flow cost accounting systems (see e.g. Burritt and The following describes the implementation methodology developed in the project and illustrates how this Schaltegger, 2000).
The following describes the implementation methodology developed in the project and illustrates how this method was applied in one of the companies which participated in the study.
Natalie Wendisch, Thomas Heupel

Chapter 11. Environmental Management Accounting in Small and Medium-Sized Enterprises

How to Adapt Existing Accounting Systems to EMA Requirements
The research project “EMA in SMEs” arose from a wider programme which Associazione Industriale Bresciana (AIB) launched about three years ago to promote the diffusion of integrated management systems in local SMEs.
In this programme the environmental accounting system (EMA), linked with a quality costing, has represented an instrument to overcome the reluctance of small companies towards management systems. First AIB developed basic evaluation check lists consistent with the implemented environmental management systems (EMSs) and then it tested and improved them in ten different pilot companies.
In the stage now in progress, AIB experts are implementing EMAs in companies having suitable accounting systems, or adapting the existing ones to EMA requirements, with two main results:
  • First: correct implementation of EMA.
  • Second, but no less important: the improvement of accounting systems of small companies and, consequently, also of their organisations.
This paper will present three complete case studies of three SMEs that prior to the AIB Project had no system for measuring and analysing environmental costs and which have now successfully implemented an EMA. For each case the identification and quantification of environmental costs will be described, as well as the solutions adopted to identify and register them periodically through the information systems.
Alessia Venturelli, Aldo Pilisi

National Experiences in Implementing EMA

Chapter 12. Environmental Accounting Guidelines and Corporate Cases in Korea

Implications for Developing Countries
Since the 1990s environmental accounting has spread rapidly as an effective tool for environmental management. Leading global companies, especially in Europe, North America and Japan, have applied environmental accounting to enhance their eco-efficiency and resource productivity.
Moreover, increasing external pressure from stakeholders like financial institutions, SRI (Social Responsible Investment), the government, and local communities has forced companies to show an active interest in environmental accounting.
Compared to advanced companies in developed countries, however, most companies in developing countries are still far behind in understanding and applying environmental accounting techniques and methods.
As a wide range of Korean stakeholders has been interested in corporate environmental performance and its disclosure in annual reports since the mid-1990s, a number of leading Korean companies have started to introduce environmental accounting. Also, in the late 1990s the Korean government made efforts to disseminate environmental accounting into the industrial sector to promote sustainable development. The Korean Ministry of Environment (KMOE) developed the “Environmental Accounting Guidelines” to disseminate information about environmental accounting into the corporate world1. Also, LG Environmental Strategy Institute (LGESI) is carrying out an EMA (Environmental Management Accounting) project to develop corporate EMA cases; these are funded by the Korean Ministry of Commerce, Industry and Energy (KMOCIE).
Byung-Wook Lee, Seung-Tae Jung, Jeong-Heui Kim

Chapter 13. Environmental Management Accounting: Current Practice and Future Trends in Argentina

This paper considers environmental management accounting (EMA) techniques in projects carried out in Argentina, South America, in which the focus is on reflecting environmental factors in order to make a substantial contribution to both business success and sustainable development. The adoption of a Cleaner Production strategy in combination with EMA adds value for assessing environmental impacts which become a significant cost issue for business. It is considered that although environmental issues are a considerable challenge to business performance, they also offer a significant opportunity for the region. In the developing World, the introduction of cleaner technology will drive for new product concepts, new production processes and logistic solutions. The interim results of the projects on Cleaner Production, cleaner technology substitution assessments and EMAi carried out with the support of the government are also discussed. This study describes and analyses the efforts of the Cleaner Production and the EMA group to integrate economic, social and environmental issues with business strategy and operations; outlines the main characteristics of the projects; and evaluates the preliminary conclusions. Key consideration is given to the benefits and barriers of co-operation between local government and the private sector. As final reflections, it recommends focusing efforts on integration where value is created in the organisation
Graciela María Scavone

Chapter 14. Environmental Management Accounting in the Framework of EMAS II in the Czech Republic

Environmental management systems are broadly implemented in enterprises in the Czech Republic. The Eco-Management and Audit Scheme (EMAS) consists in voluntary activity of the enterprise, intended to control the environmental impact of enterprise activities and to provide the relevant information to the general public and other interested parties.
The Czech Republic has included requirements on implementation of environmental management accounting in the framework of EMAS. If an enterprise is attempting to implement EMAS, then an essential part of the system consists in the obligation to establish and maintain procedures for tracing of environmental costs in order to implement environmental management accounting (EMA).
The paper deals with requirements on EMA implementation in the framework of EMAS as well as reporting of environmental costs and revenues. The paper includes some of the results acquired from a qualitative study of the state of preparedness of enterprises, registered in the EMAS, to implement EMA.
Jaroslava Hyrslová, Miroslav Hájek

Chapter 15. The Role of Government in Promoting and Implementing Environmental Management Accounting: The Case of Bangladesh

This paper aims at describing the roles of government in promoting and implementing environmental management accounting (EMA) in the light of the benefits in developing countries in general and in Bangladesh in particular. The promotion and implementation of EMA can gear up its benefits such as increase in fund, improve environmental performance, contribution to sustainable development, effective decision-making, increase market share, develop environment-friendly industrial sector, etc. Nowadays, external reporting aspect of EMA has created the awareness of the government to play its due role in promoting and implementing EMA. The government can play a role in promoting and implementing EMA through a variety of measures: formulating a policy package regarding EMA promotion and implementation, developing guidelines for the companies regarding the process of EMA reporting and for the government agencies regarding implementation of EMA ietc. for example. There are available policy options encouraging companies to practice EMA. These are information policy instruments; self-regulatory policy instruments, incentive base policy instruments, and direct regulatory policy instruments. The government can also formulate policy options at different levels as on a hierarchical basis for the implementation of EMA. The regulatory agencies of the government at various levels like the security exchange commission, financial institutions including banks, stock markets and insurance companies can also play a vital role in implementing EMA by being very strict in assessing the impacts before various financial and non-financial support is provided to the enterprises. Finally based on the available literature, the mentioned government practices of EMA; a suitable model for easy promotion and implementation of EMA in the developing countries is suggested. This paper will benefit a number of parties including the government of developing countries as to how EMA can be implemented. The researchers in this field can use the study as a reference material or as a source of further research ideas generation. The study will also benefit the academicians, practitioners and the professionals in the field of environmental accounting in general and EMA in particular.
Abdul Hannan Mia

Chapter 16. Environmental Management Accounting Practices in Japan

Environmental accounting practices in Japan have been led by two governmental initiatives. One is the MOE initiative which emphasized external disclosure. The other is the METI initiative which emphasized the applications of environmental accounting to internal management, namely Environmental Management Accounting (EMA). To characterize corporate environmental accounting practices in Japan, a questionnaire survey was administered to all companies listed in the first section of the Tokyo Stock Market. After a brief review of these governmental initiatives, this paper will examine the survey results. From the results it is found that environmental accounting is still oriented mainly toward external information disclosure, but that the application to internal management (EMA) has increased steadily. The survey results are also used to assess a set of hypotheses regarding factors and conditions important to promoting adoption and maximizing the benefits of EMA. Findings suggest that key factors include: a well-established environment department actively engaged in decision-making across the firm, understanding of environmental accounting concepts by top and middle management, and the use of specialized EMA tools.
Katsuhiko Kokubu, Eriko Nashioka

Chapter 17. Environmental Management Accounting Pilot Projects in Costa Rica

In November 2002 a “train the trainer” program on environmental management accounting was performed in Costa Rica, following the approach developed for the United Nations Division for Sustainable Development, Working Group on Environmental Management Accounting. This programme included a public lecture and five case studies. This article describes the project organisation and applied methodology, and compares the obtained results to similar case studies in Austria.
Christine Jasch, Myrtille Danse


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