- Combine other environmental management tools with the EMA method to achieve greater business and environmental efficiency.
Realizing that environmental protection is not only a responsibility but also an obligation of each individual as well as the collective. A better global environment and good business performance are desired not only in businesses but also by governments of all countries. Businesses using EMA have partly solved this concern.
3.2. Recommendations to consumers and other organizations.
Environmental issues are becoming more urgent than ever. Not only government organizations and businesses need to make efforts, but also the community needs to join hands and contribute. It doesn’t have to be something too big, but small things like sorting garbage, not littering, etc. can also significantly reduce the overall environmental costs. For consumers, being aware that consuming environmentally friendly products is contributing to protecting and making the living environment green and clean. Such consumers are called “green” consumers. In their consciousness, they are always ready to buy environmentally friendly products from companies with good environmental management and protection systems. Be ready to “boycott” products that are not “friendly” to the environment and “boycott” companies that are not conscious of protecting the environment such as: not treating wastewater but directly discharging wastewater into the community, acting “unfriendly” to the environment and leaving unfortunate consequences for the future… At the same time, not only consumers but also the community should use environmentally friendly products and also contribute to promoting consumption. These things contribute to motivating companies to implement EMA as well as measures to improve the environment.
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Nowadays, credit institutions, financial institutions and banks often consider the environmental performance of enterprises. Therefore, the right direction for these organizations is to have a system of indicators to evaluate the potential of the company to implement EMA, to evaluate and report the results. The system ensures the development of a contingency strategy and helps to ensure long-term environmental compliance. The main steps are similar to those in the EMA method:
- Collect and analyze basic information about potential customers;
- Analyze similar situations at national and global levels;
- Place of implementation;
- Explain the information clearly;
- Make decisions on financial support;
- Monitor, analyze and report results.
Thus, investors and banks have information about the environmental performance of a company that affects the value of its shares. The detail and transparency of a company's materials and energy sources not only brings the benefits already described and opportunities for cost savings, but the information system used for this purpose is also used to support the company's environmental management system.
CONCLUDE
Environmental Management Accounting is a new issue and it is very important for sustainable economic development. During its inception and development, EMA itself has proven to be a method to improve environmental performance, business development... of enterprises in the process of environmental protection and economic development. Therefore, expanding and improving EMA will save money, improve the control capacity of enterprises and increasingly better meet the requirements of the environmental situation in Vietnam and globally.
The thesis has focused on solving the following problems:
The first:Systematized some basic theories on Environmental Management Accounting. Stated the characteristics, roles, functions, benefits as well as the content and combined EMA with some other environmental management tools.
Monday:Analysis, evaluation and use of EMA in some countries around the world and illustrative data system have partly clarified the results of EMA use in the study year.
Third : The thesis also pointed out the existing problems and their causes, based on theory and practice, and proposed a system of solutions and recommendations derived from some lessons that countries and companies have applied.
However, due to the limited level and research time, the thesis cannot cover the entire content of Environmental Management Accounting as well as cannot avoid errors and limitations. I really hope to have the guidance of teachers and professional staff to make the thesis more complete and help me have a deeper understanding of this topic.
I would like to sincerely thank Dr. Tran Thi Kim Anh - lecturer at Foreign Trade University - who has guided and enthusiastically instructed me during the research and completion of my thesis.
Nguyen Thi Hoa
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INDEX
INTRODUCTION 1
CHAPTER I: GENERAL OVERVIEW OF ENVIRONMENTAL MANAGEMENT ACCOUNTING 3
1. Overview of Environmental Management Accounting (EMA) 3
1.1. Definition of environmental costs and Environmental Management Accounting (EMA) 3
1.2. Using EMA [14] 7
1.3. Function of EMA 8
1.4. Benefits of EMA 9
1.4.1. Increase profits through cost reduction 9
1.4.2. Supporting the decision making process 10
1.4.3. Improving economic and environmental performance 10
1.4.4. Satisfying requirements on social responsibility and information for stakeholders 11
2. The role of Environmental Management Accounting for business managers.[12] 11
2.1. Product/process related decisions 12
2.2. Investment projects and decision making 13
3. Contents of EMA 14 methodology
3.1. Item 1: Waste treatment costs. 15
3.2. Category 2: environmental prevention and management 17
3.3. Category 3: material purchase value of waste and emissions 19
3.4. Item 4: waste treatment costs 20
3.5. Category 5: environmental revenue 20
4. Integrating Environmental Management Accounting with Eco-Efficiency 21
5. Integrating EMA with other environmental management tools [12] 25
5.1. Environmental Management System (EMS) according to ISO 25 standard
5.2. Cleaner production 26
5.3. Environmental performance assessment and financial reporting 26
CHAPTER II: INTERNATIONAL EXPERIENCE IN ENVIRONMENTAL MANAGEMENT ACCOUNTING
SCHOOL 28
I. Environmental Management Accounting and Eco-Efficiency Improvement in Japan 28
1. Introduction 28
2. Tanabe Seiyaku: On-site management - material flow cost accounting (Appendix 1, Boxes 1, 8, 9) 29
3. Senior Management - Business Performance 30
3.1. Nippon Oil (Appendix 1, Boxes 9 and 12) 30
3.2. Ricoh (Appendix 1, Boxes 1 and 9) 32
3.3. Canon Schweiz (Appendix 1, Boxes 9 and 13) 34
3.4. Hitachi (Appendix 1, Boxes 1, 9 and 13) 35
4. Environmental performance indicators for products - Application of “environmental performance” and “Factors” indicators 36
5. Performance management for product 38
6. Conclusion 39
II. Current Practice, Opportunities and Strategies for Environmental Management Accounting in Lithuania 40
1. Introduction 40
2. Current reality of Lithuanian industrial companies 40
3. Using EMA method in APINI – NEFCO CP investment development project 42
4. EMA as a Link Between Environmental Performance and Shareholder Value 53
5. Conclusion and evaluation 54
III. Environmental Management Accounting at a Mackenzie Paper Mill in Canada 56
1. Research context 56
2. Results and analysis 57
2.1. Category 1: waste and exhaust gas treatment 58
2.1.1. Depreciation of related equipment 59
2.1.2. Maintenance and operation materials and services 59
2.1.3. Related personnel 60
2.1.4. Fees and taxes 60
2.1.5. Fines 61
2.1.6. Environmental liability insurance 61
2.1.7. Cleaning costs 62
2.1.8. General cost of waste and emissions treatment 62
2.2. Type 2: Environmental prevention and management 63
2.3. Type 3: value of purchased raw materials of non-product output 64
2.3.1. Raw materials 64
2.3.2. Packaging 67
2.3.3. Auxiliary materials 67
2.3.4. Active materials 67
2.3.5. Energy 68
2.3.6. Water 69
2.3.7. Other waste 70
2.3.8. Summary of raw material purchase value and non-product output costs. 70
2.4. Type 4: non-product output processing costs 70
2.4.1. Production of non-commercial products 71
2.4.2. Sludge 71
2.4.3. Mechanical chemical powder grinding operations 71
2.4.4. Summary of costs of non-exported products 71
3. Type 5: Environmental revenue ........................................... Error! Bookmark not defined. 4. Conclusion 72
CHAPTER III: SOLUTIONS FROM SOME INTERNATIONAL LESSONS FOR ENVIRONMENTAL MANAGEMENT ACCOUNTING IN VIETNAM 73
1. Initial steps in implementing Environmental Management Accounting in Vietnam 73
2. Solutions to improve the effectiveness of using the EMA method in businesses… 74
2.1. Develop a specific EMA implementation plan 75