Environmental management accounting (EMA) as the next step in the evolution of management accounting

Why should organizations and accountants care about environmental issues? Environmental performance and disclosure pressures from the supply chain, finance providers, regulatory agencies, and other stakeholders result in ever-increasing environment-related costs for organizations, but there is also an increasing recognition of the potential monetary benefits of improved environmental performance. There is also growing consensus that traditional accounting practices do not adequately provide the information required for environmental management and the strategic decisions related to it.Environmental Management Accounting (EMA) has been promoted by the Working Group on EMA of the United Nations Division for Sustainable Development UN DSD EMA WG and the publications commissioned by it [UNDESA/DSD, 2001. United Nations Division for Sustainable Development. Environmental Management Accounting, Procedures and Principles. United Nations Publications, New York/Geneva, http://www.un.org/esa/sustdev/sdissues/technology/estema1.htm; UNDESA/DSD, 2002. United Nations Division for Sustainable Development. Environmental Management Accounting: Policies and Linkages. United Nations Publications, New York/Geneva, http://www.un.org/esa/sustdev/sdissues/technology/estema1.htm]. Recently, IFAC has published a guidance document on EMA [International Federation of Accountants (IFAC), 2005. International Guidance Document of EMA. IFAC, New York, http://www.ifac.org] that will further promote its application among accountants.This special issue of the Journal of Cleaner Production on EMA focuses on this methodological background as well as upon experiences from case studies from Australia, Austria, Argentina, Canada, Japan and Lithuania.     

Operational change as a profitable cleaner production tool for a brewery

The development and implementation of new procedures and operational changes in the production processes constitutes a powerful tool for the practical application of Cleaner Production in industries. In this work an operational change (new procedure) was developed for the elaboration of a type of beer which uses sugar as malt adjunct. The change consists in processing separately the three main components of the beer wort: malt extract, sugar and water, and use them properly in a different sequence than that used up to date in the traditional process. The new procedure was successfully assayed on industrial scale in Tínima brewery, located in Camagüey, Cuba, obtaining a good quality beer, technological and economical advantages with benefits for the environment, registering significant savings in energy (49%), sugar (4%), water (7%) and caustic soda (3%) consumption; and diminishing the surplus hot water (74%), waste generation (11%) and greenhouse gases emission (21%). Beer production capacity is increased also almost three times. With the application of the new technology to the Cuban beer type of 8 °P, it was achieved a total saving of US$ 481.83/1000 hL of beer produced.     

Environmental issues in Nepal and solving them using the cleaner production approach

Owing to rapid industrialisation, environmental problems in sectors such as water, air, waste, energy and forestry in Nepal are reaching a crisis point. Although the Nepalese government has been trying to solve these problems by various means, the main emphasis has been on end-of-pipe solutions. This paper investigates why Nepal needs to implement Cleaner Production concepts as a matter of urgency and provides several recommendations to the government as well as sectors such as waste, industry, energy and pesticide regarding the implementation of such concepts.     

Improving cleaner production through the application of environmental management tools in China

Cleaner Production (CP) as a strategy for reducing negative environmental impacts throughout the production processes avoids and decreases pollution at its source and increases the competitiveness of enterprises. Since the establishment of China's goal for quadrupling its gross domestic product between 2000 and 2020, while improving its environmental performance and maintaining social stability, ‘win-win’ concepts such as CP are playing an increasingly prominent role in the country's development plans. Consequently, China's efforts to create a favourable policy and institutional framework for the promotion of CP that includes its unique national “CP Promotion Law” which governs the implementation of all CP activities in the country are encouraging. However, China has encountered significant challenges in improving, on a large scale, the environmental performance of its industries. Factors such as the difficulty in mainstreaming CP in industries, limited institutional resources as well as constraints in financial and technical resources of small and medium-sized enterprises have hindered the widespread adoption of CP. In addition, due to local peculiarities and disparities, different regional approaches for its implementation have evolved. This paper describes and analyses how the application of an environmental management tool in Zhejiang Province has enhanced the environmental, economic and organisational benefits of CP in enterprises.     

Environmental evaluation of localising production as a strategy for sustainable development: a case study of two consumer goods in Jamaica

The objective of this study was to compare the life-cycle environmental impacts of changed production structures for two consumer goods (high-density polyethylene (HDPE) shopping bags and beds) in Jamaica. A scenario technique was used to construct three alternative production structures for each product; each scenario reflecting an increase in local production in Jamaica which depended on an increased supply of input materials which may be sourced: (1) externally from overseas suppliers, (2) from post-consumer recycling, and (3) locally on the island of Jamaica. These three constructed scenarios were then compared to the existing supply chain or reference scenarios of the products. The results showed that for both case products the recycling scenario was most preferable for localising production, resulting in the lowest environmental impact. This was because the production of raw materials accounted for the largest effect on total environmental impact. As such, the most immediate environmental improvements were realised by lowering the production of virgin materials.     

Environmental management accounting applications and eco-efficiency: case studies from Japan

This paper explores the links between environmental management accounting and measures of eco-efficiency in Japanese business. Environmental management accounting is a relatively new environmental management tool initially designed to trace and track environmental costs and physical environmental flows. In the paper, first, the recent development of environmental management accounting is considered; second, the links between environmental management accounting and eco-efficiency measurement are examined. Recent case studies in environmental management accounting from Japan are used as a basis for the analysis. It is concluded from the analysis that the practice of linking eco-efficiency measurement with environmental management accounting information is underutilised, diverse and in need of further promotion if EMA is to help Japanese business move production processes and consumption of its products towards sustainability.     

国内实施清洁生产的探讨

清洁生产是依靠科技进步，改进技术而得到的清洁生产过程，通过清洁生产可以获得清洁的产品。讨论了在中国现阶段实施清洁生产的必要性；分析了清洁生产在中国实施的意义。     

Small-scale mining and cleaner production issues in Zambia

Small-scale mining (SSM) has had unprecedented growth in Zambia during the past decade. The sector now produces a variety of commodities, especially gemstones, building and industrial minerals. From a structural and technical perspective, SSM is conducted on a very rudimentary level using basic tools such as picks and shovel, and occasionally, mechanized equipment. The environmental degradation caused by SSM is also growing with the intensification of activities in the country. Meanwhile, institutions responsible for managing the environment are unable to effectively carry out regulatory and monitoring mandates due to inadequate resources. Although current legislation appears to be adequate in many respects, time has now come to amend the Mines and Minerals Act (1995) so that it becomes mandatory for all mining activities, including small-scale mines, to submit environmental impact assessment reports before a license to mine or explore can be granted. Strategies to eliminate illegal mining, enhancement of miners’ technical skills, and mine responsibly must also be placed high on the agenda. This paper focuses on the major issues affecting cleaner production in the Zambian SSM sector including, environmental complications, pertinent mining environmental legislation, and the institutions involved. It concludes by suggesting possible interventions to minimize environmental impacts in the sector.     

Toward cleaner production of hydrogen peroxide in China

Industrial production of hydrogen peroxide by anthraquinone (AO) process in China was briefly introduced. The pathways for cleaner production of hydrogen peroxide were discussed in detail from the viewpoint of process development and design, these included the replacement of Raney-Ni catalyst by highly active and highly selective Pd/Al₂O₃ catalyst, the reduction of raw materials, steam and power consumption, the usage of high boiling point, low water-soluble and low toxic solvents, the regeneration of degradations, the proper treatment of waste gas, water and solids. Because of these innovations and improvements, the AO process with Pd/Al₂O₃ catalyst for producing hydrogen peroxide was certified as a cleaner production technology by the Chinese government.     

Education and training for cleaner production: a flexible learning approach

Successful implementation of cleaner production concepts at the government and industry level requires that professionals in those institutions receive adequate education and training in this field. In the recent past, most of the higher learning institutions around the world have incorporated cleaner production as a subject in their curricula. In order to satisfy the specific needs of busy professionals, higher learning institutions need to use new technologies to facilitate cleaner production training. The flexible learning approach used at Griffith University is one of these valuable tools. This paper introduces some of the key concepts of flexible learning and investigates how they can be effectively used in education and training for cleaner production.     

Cleaner production as a means for effective environmental management

Cleaner production is a strategy to prevent emissions at the source and to initiate a continuous preventive improvement of environmental performance of organizations. In terms of Cleaner production the focus of management should be on prevention rather than on cure in avoiding environmental problems. The inclusion of commitment to prevention in the environmental policy is one prerequisite of the standard ISO 14001. But how can a formalized environmental management system help to start a process of continuous improvement and voluntary self regulation? We conclude from our experience that Cleaner production and ISO 14001 go well together and support each other in helping an organization to really decrease its environmental effect. Analysing environmental management systems introduced on the basis of Cleaner production projects demonstrates, that Cleaner production supplies management and employees with systematic tools to decrease the environmental impact and at the same time save costs from inefficient use of materials and energy and motivates the organization as well by creating awareness throughout the enterprise.     

Implementation of cleaner production in small and medium-sized enterprises

The aim of this article is to analyse whether it is possible for an external group to act as a catalyst when trying to make small and medium-sized enterprises (SMEs) adopt a cleaner production concept. At Linköping University, Sweden, nine SMEs cooperated in a cleaner production project that uses the University and the County Administration as catalysts. This article is based on a survey that evaluated the project. The survey shows that the SMEs did modify their products and processes after taking part in the project. They were especially successful in changing their products. Why products were changed to a larger extent than processes is not fully understood. Maybe this was done as a part of introducing a preventive environmental care system. Most SMEs did, as a part of introducing an environmental care system, introduce an environmental policy and an educational programme. The SMEs also experienced lower costs and better cooperation with the authorities. A reason for this is the good cooperation between the three participants of the project. In general, the SMEs did not think that they had gained marketing benefits. This attitude could have been different if more SMEs from the same value chain (supplier-producer-wholesalers-customer) had been involved.     

Application of cleaner production technology in chemical industry: a near zero emission

The main objective of this study is to investigate and evaluate opportunities for implementation of pollution prevention and waste minimization in a chemical industrial company producing poly sulfonated naphthalene formaldehyde which is used as a super plasticizer for concrete. Environmental problems encountered were mainly the highly polluted wastewater and a semi-solid cake containing considerable amount of the final product. Possible modules for remedial measures and their cost estimation were investigated. The proposed remedial modules included recycling of retained water discharge in filter press, recycling of washing water of reaction vessels (reactors), closed circuit cooling system for high-pressure pump, good housekeeping through control of leakage of raw material, products and water and finally utilization of retained residual product from the solid waste. The implemented pollution control measures proved to be cost effective and have short payback periods. Also, minimization of the hydraulic and organic loads in the final effluent was achieved.     

Regional initiatives on promoting cleaner production in China: a case of Liaoning

With the increasing environmental issues, now cleaner production has been implemented across all the regions of China. During this process, regional governments have played a leading role for promoting cleaner production. Main measures include coordinating the various stakeholders, providing financial support, stipulating appropriate policies and conducting capacity building programs. Such an innovative initiative is quite unique and should be further studied. This paper reflects such a perspective through a case study of Liaoning province. We first introduce the main initiatives for the promotion of cleaner production in Liaoning and then identify the key barriers. Our focus is to provide suggestions for future improvements. Finally we make our conclusions.     

Promoting cleaner production in the Indian small-scale mining industry

India is among the top ten mineral producing nations in the world and its economy depends on the value of minerals produced. Although mineral production has increased significantly since the country’s independence, what continues to be overlooked in is the contribution of resident small-scale mines to national mineral output. Approximately 90% of India’s mines are operating on a small-scale, employing some 0.5 million people. However, because of their rudimentary and highly migratory nature, these operations feature poor environmental management practices and safety conditions. This paper examines the unique techno-economic and socio-cultural characteristics of selected small-scale mining regions in India. It furthermore underscores the need for cleaner production in these regions, and outlines a series of legislative measures pertinent to the industry. The paper concludes by identifying educational- and training-related initiatives, which, if undertaken, could facilitate additional environmental improvement at sites.     

浅谈非重点企业的清洁生产审核验收工作

重点企业与非重点企业由于其参与清洁生产审核的背景及初衷方面的本质差别,使其与二者相对应的审核验收也存在着较大的不同。相对于重点企业,目前对非重点企业审核验收的相关管理制度建设方面尚存在一定的空白。探索性地通过对非重点企业清洁生产审核验收工作的特点、验收管理工作原则及验收形式的分析描述,为非重点企业的审核验收工作提供参考与借鉴。     

Lessons from cleaner production experiences in Indian hosiery clusters

This paper focuses on lessons learnt from Cleaner Production (CP) experiences in textile bleaching and dyeing (hosiery) clusters in India. The regional and industry contexts for CP are demonstrated by outlining the interaction and interdependency between the urban and rural environment, and an industry cluster centered on Tirupur City. A policy for fostering water use productivity in the industry cluster is discussed, which shows how that in order for resource productivity to be maintained, regional and industry CP strategies should be aligned. This is illustrated by a discussion on CP lessons in water and chemicals conservation. The paper also recommends future areas of CP investigations required in the industry to make it ecologically sustainable in the long-term.     

Technical measures to achieve a cleaner production mode for recycled paper mills

China’s paper production reached 79.8 × 10⁶ t in 2008 and ranked number one in the world. Because of its high consumption of water, energy and materials and its serious pollution, the present processes are not likely to be sustainable. An alternative, the closed Water Loop-Papermaking Integration (WLPI) method, is put forward in this paper. The WLPI method can be realized in a recycled paper mill by adding technologies and using recycled water. Many industrial case studies have shown that a large quantity of water, energy and materials can be saved, and the quantity of waste sludge and wastewater discharge was minimized by using the WLPI method. The design of the water reuse system, control of calcium hardness, water recycling and minimal waste sludge are discussed. Anaerobic technology plays an important role in the WLPI method to lower cost, energy use and waste. In the brown paper and coated white board production, zero-effluent discharge can be realized. Fresh water consumption is only 1–2m³·t⁻¹. For the paper mills with deinking and bleaching processes, about 10 m³·t⁻¹ of fresh water and a similar amount of effluent discharge are needed. Power saving using anaerobic technology is 70% when recycled water is used in comparison with the conventional activated sludge process.Waste sludge can be decreased to about 5% of the initial process due to reuse of the waste sludge and the lower bio-sludge production of the anaerobic process.     

Implementation of cleaner production practices with the support of a diploma course

This paper describes the initial proposal of a cleaner technologies network in the state of Bahia, in the northeast section of Brazil. This network intends to bring together industry, universities, and government to discuss the relationship between production and the environment. Its main objective is to support a change in the way this relationship is nowadays perceived, in order to make preventive practices a priority and improve eco-efficiency. Implementation of the network was preceded by a diploma course on environmental technologies and management directed at professionals in the workforce. The results of the course are helping to create an atmosphere that is beneficial for the start-up of the network.     

Environmental management accounting in Lithuania: exploratory study of current practices,opportunities and strategic intents

There is a growing consensus among the Lithuanian policy makers, practitioners and industrialists that environmental policy must move from a reactive stance to a more proactive, sustainable development approach. As a result, many companies are increasingly interested in the application of economic incentives at least as supplements or reinforcements of environmental standards.The Institute of Environmental Engineering (EU Centre of Excellence in Sustainable Industrial Development (APINI – SID)) in 1992–2003 has been involved in introduction and implementation of preventive environmental strategy in industry in Lithuania and in other countries. In Lithuania, these efforts resulted in the implementation of more than 200 cleaner production innovations in more than 150 Lithuanian companies. It should be stressed that effective plant maintenance is becoming a higher priority to plant managers. It is important to ensure cost-savings, at all levels, that include maximizing productivity and implementing energy-saving approaches. Effective and efficient maintenance are not just desirable, but fundamental to profitable business operations. Therefore, central to the environmental view of sustainable development is the concept that economic and social systems are sub-systems of the global environment.APINI's experience shows that decision-makers at the company level often fail to recognize the economic values of natural resources as assets as well as the business and financial value of good environmental performance. Therefore, there is a need to upgrade the business decision-making process by including information on material flows and related costs to account for efforts of sustainable development [Staniskis JK, Stasiskiene Z. Promotion of cleaner production investments: international experience. Journal of Cleaner Production 2002;11(6):619–28. ISSN: 0959-6526, Elsevier Science]. Decisions are increasingly affected by environmental costs. Application of environmental management accounting (EMA), which integrates two of the main principles of sustainable development – environment and economics, can help to significantly improve corporate decision-making.EMA is becoming increasingly important not only for environmental management decisions and development of environmental management systems (EMS), but also for all types of routine management activities, such as product and process design, cost allocation and control, capital budgeting, purchasing, product pricing and performance evaluation.Companies, which use EMA as a part of integrated management system, are provided with accurate and comprehensive information for the measurement and reporting of environmental performance.This paper investigates the current state of EMA practices in Lithuanian SMEs that have already been or are being implementing EMS and which have implemented CP innovations. In this case, EMA is analysed as an innovative assessment and evaluation method of EMS and CP innovation's environmental impacts and economic benefits. It should be stressed, that there are obvious differences in case studies from different industries. However, review of the results shows that there are many similarities in what improvements can be suggested for environmentally concerned companies both in terms of environmentally sound operation and for reporting of environmental management accounting information.