ENVIRONMENTAL MANAGEMENT ACCOUNTING
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1 ENVIRONMENTAL MANAGEMENT ACCOUNTING DISSEMINATION, INTEGRATION AND ADAPTATION Von der Fakultat Wirtschaftswissenschaften der Leuphana Universitat Luneburg Zur Erlangung des Grades Doktor der Wirtschafts- und Sozialwissenschaften (Dr. rer. pol.) genehmigte Dissertation von Tobias Viere aus Buckeburg
2 CONTENT Acknowledgements 1 Content 3 Part A: Research Resume 9 1 Dissemination, Integration, and Adaptation of Environmental Management Accounting: A Contribution to Corporate Sustainability Introduction Scope of the thesis Research motivation, questions, and design EMA in developing countries and small- to medium-sized enterprises of South-East Asia Background and research question Results and findings Exploratory case studies Comparative case study EMA and Information Systems Background and research question Findings Systematisation of information systems and tools in an EMA context EMA and material flow based information systems Strategic material-flow based information systems at Wacker Chemle Material Flow Cost Accounting Background and research question Findings Allocation and MFCA MFCA and material loops, Environmental relevance of MFCA Discussion of findings in their theoretical contexts Theories of Management Accounting Corporate sustainability Challenges of EMA Linkage of EMA to life cycle thinking and industrial ecology Inter- and transdisciplinarity Limitations and future research Conclusion References 52
3 Part B: EMA in Developing Countries and Small- to Medium-sized Enterprises of South-East Asia 67 2 Environmental Management Accounting Introduction to environmental and conventional accounting Accounting and purpose-orientated information The accounting process Conventional Corporate Accounting Conventional financial accounting Conventional management accounting Environmental accounting Environmental Management Accounting: framework and tools Relevance and benefits of EMA Conceptual framework for EMA Decision settings and tools of the EMA framework Past-orientated, routine information Past-orientated, ad hoc information Future-orientated, regular information Future-orientated, ad hoc information Usefulness of EMA information in the South-East Asian context Economic and environmental importance of South-East Asia Usefulness of EMA information EMA in South-East Asia References 97 3 Partnerships for Sustainable Business Development. Capacity building in South-East Asia Introduction SMEs and sustainable development Capacity development and the role of partnerships for sustainable business Recommendations In practice-the EMA-SEA project Content Partners Activities Summary and outlook References Comparative case study on EMA in South-East Asia Purpose and research questions for the EMA research study Factors influencing the implementation of EMA Patterns of EMA use The case study approach Purpose and characteristics of case studies Why a case study? Comparative case study on EMA in South-East Asia Overview of the EMA case study Indonesia The Philippines Thailand Vietnam References 133
4 5 Decoupling economic growth from pollution: Tan Loc Food, Vietnam Introduction Initial situation Economic situation Environmental situation Production processes Decision situation and the company's motivation for using EMA Applying EMA at Tan Loc Food Important environmental issues Present environmental costs Measures to increase eco-efficiency at present Measures to increase eco-efficiency at Tan Loc's new site Conclusion References Material and energy flow accounting in beer production: Sai Con Beer, Vietnam Introduction Initial situation Environmental issues Economic situation Brewing technology Decision situation and company's motivation for using EMA Applying EMA at Sai GonBeer Material and energy flow accounting Water and energy costs Assessment Improvement options Data quality Conclusion and outlook References Environmental and quality improvements as justification for higher capital expenditure and land use in shrimp farming: Chau Thanh Tarn Shrimp Farm, Vietnam Introduction Decision setting Environmental and economic conditions of shrimp farming in the Mekong delta Shrimp farming approach of Chau Thanh Tarn Decision situation and the company's motivation for using EMA Applying EMA to the CTT Land use Shrimp yield and revenues Water use and sewage generation Cost of goods sold Capital expenditure Further relevant information Income statements Key comparative indicators Data quality Discussion and conclusion References 188
5 8 EMA for eco-efficiency in a towel production firm: Indah Jaya, Indonesia Introduction Decision situation and institutional setting Competitive and economic situation Environmental issues Technological processes of towel production Indah Jaya's motivation for using EMA Applying EMA at Indah Jaya Material and energy flow accounting including costs Material flow cost accounting Assessment of eco-efficiency improvements Steam supply Absorption chiller Water recycling Hot water preheating Job order costing at Indah Jaya Discussion and conclusions References Findings of the comparative case study research Rationale behind and reasons for applying EMA in corporate practice Revealing patterns of environmental management accounting application Introduction Simple relationships between EMA tools More complex relationships between EMA tools Synthesis of EMA patterns Conclusions and outlook Management consequences Policy consequences Concluding comments and outlook References 231 Part C: EMA and Information Systems Computer Support for Environmental Management Accounting Introduction Computer-based EMA Systems Enterprise Resource Planning Systems Capabilities and Limitiations of ERP Systems in an EMA Context Computer-based EMA Tools EMA Components Conclusions and Outlook References Material Flow Analysis between Dynamic Modelling and Life Cycle Assessment Architecture of Environmental Information Systems Material Flow Analysis From Life-Cycle Assessment to Material Flow Analysis Static Material Flow Analysis 261
6 Static Material Flow Analysis as Modelling Framework Dynamic Material Flow Analysis Hybrid Material Flow Analysis Conclusions References Verbund-Simulation - Strategic planning and optimization of integrated production networks Introduction Verbund-Model requirements Approaches to model process industry production networks The material flow network based Verbund-Model Simulation and optimization within the Verbund-Model Results and outlook References 283 Part D: Material Flow Cost Accounting Implications of Material Flow Cost Accounting for Life Cycle Engineering Introduction MFCA benefits and limitiations MFCA and LCA/Carbon Footprinting MFCA and material loops Environmental and financial impacts of material loops MFCA assessment of material loops Discussion and conclusion References A material flow cost accounting approach to improvement assessment in LCA Introduction MFCA Implications for LCA and exemplificiation Conclusion References Life Cycle and Supply Chain Information in EMA. A Coffee Case Study Introduction Environmental Management Accounting and Life Cycle Information Case study background: the coffee market Environmental issues in the coffee supply chain Environmental supply chain improvements - conclusions from life cycle assessments on coffee The EMA case of a Vietnamese coffee exporter Initial situation The refinement process Supply chain setting EMA motivation and decision setting EMA application Material- and energy flow based cost accounting of the refinement processes Environmental supply chain costing and management 323
7 15.5 Conclusions References Material flow cost accounting in a snack producer: JBCFood, the Philippines Introduction Institutional and decision setting Economic performance, products and production technology Environmental and social issues and performance Company's motivation for using EMA Applying EMA at JBC MCFA implementation at JBC Physical flows and material losses Linking physical flows to costs Results from MFCA application Outlook Discussion and conclusions Acknowledgements References 346
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