ACCOUNTING FOR ENVIRONMENTAL COSTS

Environmental costs

Internal costs directly impact on the income statement of a company.

External Costs are imposed on society at large but not borne by the company that generates the cost in the first instance

improved systems

carbon emissions

waste disposal costs

usage of energy and water

product take back costs

forest degradation

regulatory costs

health care costs

upfront costs

social welfare costs

backend Costs

EMA
The identification, collection, analysis and use of two types of information for internal decision making :
Physical infomation on the use, flows and destinies of energy, water and materials (including wastes) Monetary information on environment-related costs, earnings and savings.

Environmental Costs
Waste Water Energy Transport and travel Consumables and raw materials

Internal Reporting
Categories of costs (Hansen + Mendoza)
Environmental prevention costs
Environmental detection costs Environmental internal failure costs Environmental external failure costs

US EPA

UNDSN

Conventional costs

Costs incurred to protect the environment

Costs of wasted material

Potentially hidden costs

Contingent costs Image and relationship costs

Management Accounting Techniques