Effects of the reduction of pollution emissions on the economic performance of firms: an empirical analysis focusing on demand and productivity

This paper analyzes whether the reduction of pollution emissions improves a firm’s economic performance through the increase in sales to environmentally conscious customers and the cost reductions associated with the improvement in productivity. Because the selection of the control (end-of-pipe) or prevention (cleaner production) approach differently influences the effect through the improvement in productivity, this is also considered. Using panel data for Japanese manufacturing firms over the period 2002–2008, the findings indicate that firms that have reduced their pollution emissions can increase their economic performance through the increase in demand for their products and an improvement in productivity. However, the latter is conditional, and so the prevention approach is preferred.     

How material flow cost accounting contributes to the SDGs through improving management decision-making

The purpose of this study is to clarify how material flow cost accounting (MFCA) can contribute to the SDGs and indicate how to introduce it into a company. First, we undertake a literature review to examine which SDGs MFCA can potentially contribute to. We then analyse the interplay between MFCA and management decision-making on the SDGs using an MFCA-LCA integrated model. Finally, we discuss how to introduce MFCA into a company to integrate the SDGs into management decision-making with reference to the SDG Compass. The main contributions are as follows: First, we revealed that MFCA could potentially contribute to multiple goals in the SDGs. Second, we clarified that MFCA could integrate the SDGs into actual management decision-making. Third, we suggested appropriate steps for implementation, regarding how managers should introduce MFCA into the management process on the condition that it does not prioritise economic benefit over social and environmental benefits in contributing to the SDGs. Therefore, this study provides evidence that MFCA can contribute to the SDGs by integrating them into management decision-making, and suggests appropriate implementation steps for promoting the pursuance of SDGs in any company.