Development Aspects Impressum Editors

Environmental management accounting (EMA)

EMA is defined as the identification, collection, analysis and use of two types of information for internal decision-making: physical information on the use, flow and

destination of energy, water and materials (including wastes) of the company; and monetary information on costs, profits and savings regarding the environment. It focuses on the optimization of production and products by tracking all environ- mental costs back to their sources, especially costs of pollution that are “hidden” in production costs. The basics of EMA are that everything that the company ac- quires and that is not part of the final product should be reduced to a minimum. EMA looks into the production level of the management pyramid and is the most helpful tool to ensure buy-in from the manager of a company as it allows for the pinpointing and actual pricing of the inefficiencies in the production process (De Palma and Csutoras, 2003).

3. Environmental management system (EMS)

ISO 14001 defines EMS, the part of the overall management system that includes the organizational structure, planning activities, responsibilities, practices, proce- dures, processes and resources for developing, implementing, achieving and main- taining the environmental policy. It focuses on identification and management of environmental aspects, and it is widely used as a tool to ensure compliance with environmental standards. However, to operate properly it must be integrated with the other systems of the company. The EMS affects a lower, and therefore more complex, level of the pyramid: the system level.

4. Environmentally sound technology (EST)

According to Agenda 21, “ESTs encompass technologies that have the potential to significantly improve environmental performance relative to other technologies” (Agenda 21). These technologies protect the environment, are less polluting, use resources in a sustainable manner, recycle more of their wastes and products and handle all residual wastes in a more environmentally sound manner than the tech- nologies they are designed to replace. This tool builds on the concept of best avail- able techniques and can include end-of-pipe solutions after the potential for fea- sible preventive measures has been explored. The EST typically covers the cleaner production measures which require additional investment. EST affects the produc- tion process but needs the endorsement of the managers (hence the stakeholders) to secure the investment. While the TEST projects do not provide funds to support the introduction of the EST, detailed investment packages with a clear payback period based on the EMA analysis are developed with the companies.

5.