student
`
Environmental and Social Reporting
Environmental Management Accounting
Content
1. What is EMA…………………………………………………………3~4
2. The origin of EMA……………………………………………………5
3. Development of EMA………………………………………………..5~6
4. Application of EMA
Environmental cost………………………………………………6~7
Benefits of using EMA…………………………………………..7~8
Challenges of EMA………………………………………………..9
5. Sustainability and EMA…………………………………………….9~10
6. Conclusion …………………………………………………………..10
7. References…………………………………………………………….11
What is EMA?
Environmental impacts have become a key concern for many businesses as it is leads to increase the cost (in physical and environmental). For sustainability concerns, Environmental Management Accounting (EMA) duly came out with the duty of built a standard for business to follow.
EMA is used to describe different aspects of new field of accounting. It focuses on how to make internal business decisions as a management tool. Especially for ‘forecast’ the environmental management activities. It is a wide set of approaches and principles that provide views to both physical flows and key of successful management through regular management activities. Such as capital budgeting, product pricing, cost and control, etc. It also offers potential benefits to an industry and makes the environment able meet sustainable development. There are some fields of apply the EMA data;
Application fields for the use of EMA data are:
• Assessment of annual environmental costs/expenditure;
• Product pricing;
• Budgeting
• Investment appraisal, calculating investment options;
• Calculating costs, savings and benefits of environmental projects;
• Design and implementation of environmental management systems;
• Environmental performance evaluation, indicators and benchmarking;
• Setting quantified performance targets;
• Cleaner production, pollution prevention, supplies chain management design for
Environmental and Social Reporting
Environmental Management Accounting
Content
1. What is EMA…………………………………………………………3~4
2. The origin of EMA……………………………………………………5
3. Development of EMA………………………………………………..5~6
4. Application of EMA
Environmental cost………………………………………………6~7
Benefits of using EMA…………………………………………..7~8
Challenges of EMA………………………………………………..9
5. Sustainability and EMA…………………………………………….9~10
6. Conclusion …………………………………………………………..10
7. References…………………………………………………………….11
What is EMA?
Environmental impacts have become a key concern for many businesses as it is leads to increase the cost (in physical and environmental). For sustainability concerns, Environmental Management Accounting (EMA) duly came out with the duty of built a standard for business to follow.
EMA is used to describe different aspects of new field of accounting. It focuses on how to make internal business decisions as a management tool. Especially for ‘forecast’ the environmental management activities. It is a wide set of approaches and principles that provide views to both physical flows and key of successful management through regular management activities. Such as capital budgeting, product pricing, cost and control, etc. It also offers potential benefits to an industry and makes the environment able meet sustainable development. There are some fields of apply the EMA data;
Application fields for the use of EMA data are:
• Assessment of annual environmental costs/expenditure;
• Product pricing;
• Budgeting
• Investment appraisal, calculating investment options;
• Calculating costs, savings and benefits of environmental projects;
• Design and implementation of environmental management systems;
• Environmental performance evaluation, indicators and benchmarking;
• Setting quantified performance targets;
• Cleaner production, pollution prevention, supplies chain management design for
References: Alin Emanuel Artene, Environmental Management Accounting and the Opportunity Cost of Environment Management System http://fse.tibiscus.ro/anale/Lucrari2012/kssue2012_117.pdf (assessed on 25th November 2013) ACCA (2013), Environmental Management Accounting http://www.accaglobal.com/en/student/acca-qual-student-journey/qual-resource/acca-qualification/p5/technical-articles/environmenta-management.html (assessed on 26th November 2013) Doc.It (2006), What is Environmental Accounting?, http://www.accountingweb.com/topic/education-careers/what-environmental-accounting (assessed on 25th November 2013) International Federation of Accountants (2005), Environmental Management Accounting, Uses and benefits of EMA, P21~24 Smith, Thorne &Hilton (2006), Accounting management, Environmental and social management accounting, P807 Smith & Hilton (2009), Management accounting 5E, Sustainability and management accounting, P850 Solomon, A. and Lewis, L.A. (2002), ‘Incentives and disincentives for Corporate Environmental disclosure’, Business strategy and the environment, 11(3), P154-169 UKacademia, Environmental Management Accounting (EMA), Management Accounting Including Environmental Management http://www.ukacademia.co.uk/dissertations2.aspx (assessed on 28th November 2013) United Nations Division for Sustainable Development (2001), Environmental Management Accounting, Procedures and Principles TELLUS INSTITUTE, Environmental Management Accounting, http://www.env.go.jp/policy/kaikei/sympo/k15.pdf (assessed on 25th November 2013)