SEMINAR 2

Current Initiatives in Environmental-

related Management Accounting
AC 220 8H

NAME ID

Nurul Hazirah binti Nor Azmi 2017638996

Sharifah Hafshah bt.Shah Syed 2017639114

Nurfarahin bt. Ahmad 2017649028

Nur Izzatul Afrina bt. Fahrurrazi 2017639008

Prepared for:
Assoc. Prof. Dr Norziaton Ismail Khan
 What is Environmental
Management Accounting
(EMA)?
Identification, collection, analysis and
use of two types of information for
internal decision making. The first is
physical information on the use, flows
and rates of energy, water and materials.
The second is monetary information on
environment-related costs, earnings and
savings.
What is Environmental
Management System
(EMS)?
A system and database which integrates
procedures and processes for training of
personnel, monitoring, summarizing and
reporting of specialized environmental
performance information to internal and
external stakeholders of a firm.
 RELATIONSHIP BETWEEN EMA AND
EMS

 EMA is simply a specialized part of the management accounts that focuses on things such as the cost
of energy and water and the disposal of waste and effluent.
 The focus is not all on purely financial costs, it includes consideration of matters such as the cost vs
benefits of buying from suppliers.
 Most business activities have environmental impacts and almost all environmental impacts have
business costs such as consuming raw materials, using utilities such as water and energy, and
generating waste.
 EMS is systems that organizations put in place to manage their environmental performance. It include
recycling systems and systems to control levels of liquid, material and atmospheric waste.
 EMS is using ISO14001. It helps organizations improve their environmental performance through
more efficient use of resources and reduction of waste, gaining a competitive advantage and the trust
of stakeholders.
Uses and Benefits
Pollution Prevention Modifying
 Pollution prevention is a multi- processes or
procedures
Reuse of wasted
media environmental materials in the
management approach which same process for Reformulating
another useful or redesigning
emphasizes the elimination or application products
reduction of waste at the source within company
Pollution
of generation. prevention
techniques.

Modifying Substituting
 Pollution prevention focus on 5 equipment or raw materials
technology
different areas which are water, Improving
air, solids, time, and energy. housekeeping,
maintenance,
training, or
inventory control
Cleaner Production
• Cleaner production emphasize environmental management through
source reduction, rather than pollution control methods.
Cleaner production emphasize environmental management
• through source reduction, rather than pollution control methods.
It should not be considered an absolute state, but rather a process
It should not be considered an absolute state, but rather a
which continually evolves
process which with evolves
continually the introduction of improved
with the introduction of
technology and innovative
improved ideas.
technology and innovative ideas.
Cleaner production is a technique designed for sectors dealing
with production processes, like the manufacturing sector.
• Cleaner production is a technique designed for sectors dealing with
production processes, like the manufacturing sector.
 Six components of cleaner production:
• CP strives to minimize the risks
of workers in order to make the
• the term waste refers to all types of safe and workplace a cleaner, safer, and
waste including both hazardous and healthy work healthier environment.
waste solid waste, liquid and gaseous wastes, environments
reduction waste heat.
• The final product and all
marketable by-products should be
• refer to an ideal production processes, environment as environmentally appropriate as
within the concept of cleaner ally sound possible.
non- production, take place in a closed loop products
polluting with zero contaminant release.
production
• Product packaging should be
environment minimized wherever possible.
• Cleaner production requires the highest
ally sound
production levels of energy efficiency and
conservation.
packaging
energy
efficiency
 ENVIRONMENTAL PERFORMANCES
REPORTING

• Environmental performance reporting refers to systematic and holistic statements of environmental burden
and environmental efforts in organizations’ activities, such as environmental policies, objectives, programs
and their outcomes, organizational structures and systems for the environmental activities, in accordance
with general reporting principles of environmental reporting, and that is published and reported periodically
to the general public. This is to provide the useful information to decision making of interested parties.
• It has become one of the requirement in a company to show what the company is doing in order to sustain
and manage the environmental issue during the year.
• The main reasons for reporting are to keep the transparency in line with Sustainable Development objectives
which many stakeholders want to integrate environmental and social information in their decision making
processes.
• Through the environmental performances reporting, some benefit can be achieved which is there
will be the creation of market opportunities environmental reporting linked to business
performance and raises the profile of an organization and gains recognition of potential
customers.
• The eight steps are grouped under the three key phases- Plan, Measure and Report & Review.
 ASSURING ENVIRONMENTAL
COMPLIANCES

 Environmental compliance means conforming to environmental laws, regulations,

standards and other requirements such as site permits to operate.

 Environmental compliances are essential to provide a basis for public confidence about
the environmental issue such as the safety of hazardous installations and the preservation
of natural values.

 The respective company need to comply with the rules and regulation to avoid fine and
legal actions taken against them.
 There are several principle that support the environmental compliances:

Proportionality in the Transparency of the regulatory

application of the law and in body in order to maintain the
securing compliance in order to public confidence and to
protect against the risk and understand what are they intend
serious environmental damages. to do as enforcement action.

Consistency and credibility of

approach in the enforcement
towards the environmental
compliances.
Improving Resources Efficiency

What is resources
efficiency ? • The ability to create more
goods and services, more
wealth and more human
well-being with less input of
natural resources.
 How To Improve Resources Efficiency

Reuse or recycle Conducting a waste Improve purchasing

• Purchase recycledassessment to reduce waste
materials where possible. • To identify major • To avoid over ordering of
• Waste can often be environmental issues, raw materials.
recycled and may be a major opportunities for • Investigate whether a
valuable product for improvement and major different raw material
another business. economic issues. would produce less waste.
 Application To Industry

Hewlett-Packard is one of the first companies to have reported its greenhouse gas
emissions, after which they have initiated plans that are aimed at reducing
emissions and cutting back on toxic substances used in manufacturing its products
like cartridges. The company also has an aggressive recycling program that
ensures most of the manufacturing waste does not end up in landfills.
Furthermore, it has taken the lead in spreading word on the importance of
environmental responsibility in its ads that promote green initiatives.
THANK YOU !