Identifying and Accounting for Environmental Costs

1998 ◽  
Author(s):  
Doug Jagger ◽  
Dave Korpach
Keyword(s):  
Environmental Performance ◽  
Oil And Gas ◽  
Environmental Cost ◽  
Environmental Costs ◽  
Environmental Implications ◽  
Bottom Line ◽  
Significant Cost ◽  
Cost Drivers ◽  
Cost Implications ◽  
The Cost

Protection of the environment has been and will continue to be a major issue facing the pipeline business around the world. Many of the decisions companies make relating to future investments and ongoing operations have environmental implications. These decisions can have significant cost implications that impact the bottom line of oil and gas transportation companies. Most companies do not track their environmental costs rigorously and thus, do not have a good understanding of the magnitude of these costs. Recently, we have undertaken studies to define and identify the major environmental cost drivers in the industry. As part of these studies, we identified some potential measures of environmental performance and actually measured certain aspects of environmental performance in pipeline companies. This paper will provide insights into the major environmental cost drivers in the industry and will define these cost drivers. It will provide some ideas on “what to measure” relating to environmental costs. Implementing an environmental cost management system is not a trivial task. It is difficult to assess how much of the cost associated with a certain investment is related to the environment. This can only be determined on a project by project basis and will also be unique from company to company. Although there is no “cookbook” approach to implementing this system, this paper will provide some guidance for implementing such a system.

scholarly journals PENGARUH ENVIRONMENTAL COST DAN ENVIRONMENTAL PERFORMANCE TERHADAP FINANCIAL PERFORMANCE (Studi Kasus pada Perusahaan Sektor Pertambangan Peserta PROPER Periode 2012 – 2016)

2019 ◽  
pp. 259
Author(s):  
Lastri Meito Nababan ◽  
Dede Abdul Hasyir
Keyword(s):  
Financial Performance ◽  
Environmental Performance ◽  
Linear Regression Analysis ◽  
Control Variable ◽  
Mining Industry ◽  
Environmental Cost ◽  
Environmental Costs ◽  
Statistical Research ◽  
Bottom Line ◽  
Return On Assets

As a result of their activities, companies are demanded by stakeholders to perform in accordance with the concept of triple bottom line: financial aspects (profit), environment (planet), and social (people). This study aims to examine the effect of environmental costs and environmental performance on the company's financial performance. Environmental costs data are retrieved from the company's sustainability reports, environmental performance is then measured by PROPER ratings, and financial performance is proxied by return on assets (ROA). In addition, company size is employed as control variable. Through purposive sampling method, seven companies were selected in the mining industry sector in the period 2012-2016 as samples. This study uses multiple linear regression analysis to test the hypothesis. The results of the research both simultaneously and partially show that environmental costs and environmental performance have a significant influence on financial performance. It can be concluded that the greater the environmental cost and the better the environmental performance (PROPER) can increase the financial performance (return on assets) of the company. Firm size as a control variable is significantly associated with environmental costs and environmental performance. The hypothesis formulated in this study was accepted and has been supported by statistical research results.

scholarly journals Environmental crisis effect on environmental costs

2021 ◽  
Vol 937 (2) ◽  
pp. 022036
Author(s):  
T Podolskaya ◽  
G V Kravchenko ◽  
Kh Shatila
Keyword(s):  
Environmental Management ◽  
Decision Making ◽  
Environmental Performance ◽  
Cost Accounting ◽  
Economic Benefits ◽  
Decision Makers ◽  
Environmental Cost ◽  
Environmental Costs ◽  
Financial Benefit ◽  
Business Decision

Abstract Environmental management accounting is a mechanism for determining and evaluating, and incorporating these cost and benefit in the day-to-day business decision making, the full spectrum of environmental costs of current production processes and the economic benefits of contamination prevention, or cleaner processes. In practice, the past 10 years have acquired significance from corporate accounting, which is the most prominent part of cost accounting. Limits were widely acknowledged of conventional financial and cost accounting techniques reflecting companies’ sustainability efforts and providing management with necessary information for sustainable business choices. Information on companies’ environmental performance may be somewhat accessible, but both domestic decision makers and those at the level of public authorities are seldom able to connect environmental information with economic variables and are essentially deprived of environmental cost information. Decision makers do thus not recognize the economic worth of natural resources as asset and the commercial and financial benefit of excellent environmental performance. Beyond ‘goodwill’ efforts, there are a number of market-based incentives for integration with decision making of environmental issues. This article provides an outline of environmental management methods and we evaluate environmental costs in terms of current economic crisis.

Analisis Penerapan Akuntansi Biaya Lingkungan Sebagai Pertanggungjawaban Sosial Di RSI Hidayatullah Yogyakarta

2017 ◽  
Vol 25 (2) ◽  
pp. 194-215
Author(s):  
Risa Nurwulan Sari ◽  
Achmad Tjahjono
Keyword(s):  
Environmental Quality ◽  
Treatment Cost ◽  
Secondary Data ◽  
Financial Statements ◽  
Environmental Cost ◽  
Financial Statement ◽  
Primary Data ◽  
Environmental Costs ◽  
Biological Method ◽  
The Cost

Environmental cost is also known as the cost of environmental quality. The treatment cost of environmental quality is equal to the cost of environmental quality, so that the cost of environmental quality can be grouped into : environmental prevention costs, environmental detection costs, environmental internal failure costs, and environmental external failure costs. The purpose of this study is to investigate and analyze how firms identify, recognize, measure, assess and present and disclose the environmental cost in the financial statements. This research was conducted at the Hidayatullah Islamic Hospital of Yogyakarta who has had WWTP by using biological method, that is activated sludge. This study is a qualitative research. This study uses primary data and secondary data. Primary data were collected by interview. The results of this study are in the hospital recognizes the environmental costs and presented into a single account with the other similiar cost in the primary financial statement. Environmental cost is measured by the cost incurred (Historial Cost) with the monetary units rupiah. Environmental costs are not disclosed in the notes of the financial statements (CALK), but disclosed in a descriptive report, a report UKL-UPL. 

scholarly journals Analisa Environmental Cost pada Perusahaan Non-Keuangan yang Terdaftar di Bursa Efek Indonesia Periode 2011, 2012 dan 2013

2014 ◽  
Vol 5 (2) ◽  
pp. 615 ◽  
Author(s):  
Kartike Dewi
Keyword(s):  
Cost Allocation ◽  
Secondary Data ◽  
Financial Statements ◽  
Environmental Cost ◽  
Environmental Damage ◽  
Environmental Costs ◽  
Net Income ◽  
Damage Costs ◽  
Over Exploitation ◽  
The Cost

Environmental damage due to over-exploitation by employers without thinking about environmental improvements result in long-term environmental damage. Allocation of environmental costs, making high expenses on companies that ultimately will reduce net income. This study will examine companies that have great potential to damage the environment, but the company is willing to make the allocation of environmental costs in its income statement, and the company also wants to follow the PROPER program created by the Ministry of Environment for the period 2011 to 2013. The research was conducted using secondary data in www.idx.co.id and www.proper.menlh.go.id. Financial Statements of the company that made the sample examined by checking whether there is environmental damage costs are allocated and check the results of PROPER (Program Performance Rating). This study will determine whether the company identifying, recognizing, measuring and presenting the cost of environmental damage in the Financial Statements. Results obtained from secondary data is that many companies have yet to identify, acknowledge, measure and present the cost of the destruction of nature in the financial statement, the company may have a cost allocation but still use the Incidental Charges account, so that when the pages are checked through www.idx.co.id charge is not visible. It is expected that in the future the company create its own environmental cost allocation account so that it can be easily identified by users of Financial Statements.

scholarly journals Klasifikasi Biaya Lingkungan pada Rumah Sakit Jember Klinik

2019 ◽  
Vol 6 (2) ◽  
pp. 102
Author(s):  
Muhammad Ridwan ◽  
Septarina Prita D. S ◽  
S. Sudarno
Keyword(s):  
Environmental Cost ◽  
Environmental Costs ◽  
Cost Categories ◽  
The Republic ◽  
Using Data ◽  
The Cost ◽  
Keywords Cost ◽  
Research Type ◽  
Descriptive Method

This study aims to determine the classification of environmental costs at Jember Klinik Hospital and to know whether there are differences in environmental cost classification made by Jember Klinik Hospital with Environment Related Cost Categories of EMA. This research type is qualitative research with descriptive method. Data collection techniques used interview, documentation and obsevation. Test the validity of data in this study using data triangulation . Based on the research, it is concluded that Jember Klinik Hospital classifies environmental costs in accordance with the Decree of the Minister of Health of the Republic of Indonesia No. 1204 / MENKES / SK / X / 2004 on Hospital Health Requirements and the environmental cost classification of Jember Klinik Hospital has been in accordance with the ERCC of EMA classification but the cost of research and development is still not implemented by the Jember Klinik Hospital some have been appropriate. Keywords: Cost Classification, Environmental Cost, Hospital, and ERCC of EMA

scholarly journals THE INFLUENCE OF ENVIRONMENTAL PERFORMANCE, ENVIRONMENTAL DISCLOSURE AND ENVIRONMENTAL COST ON ECONOMIC PERFORMANCE

2018 ◽  
Vol 1 (2) ◽  
pp. 87
Author(s):  
Irfansyah Irfansyah ◽  
Husnah Nur Laela Ermaya ◽  
Krisno Septyan
Keyword(s):  
Economic Performance ◽  
Environmental Performance ◽  
Stock Exchange ◽  
Environmental Cost ◽  
Net Income ◽  
Environmental Disclosure ◽  
Service Companies ◽  
Negative Effect ◽  
The Cost ◽  
Test Result

This research aims to examine the effect of environmental performance measured with PROPER, environmental disclosure measured with GRI index version 4.0, and environmental cost measured by comparing the cost incurred for CSR and net income. The populations in this study are agriculture, mining, manufacturing and other non- financial service companies listed in Indonesia Stock Exchange in 2013-2016 with 58companies in number. This study used purposive sampling method, leaving 15 companies that match the criteria. Hypothesis testing in this study used Multiple Linear Regression. The results of the testing showed that (1) environmental performance had significant effect on economic performance (2) environmental disclosure had no significant effect oneconomic performance (3) environmental cost had significant negative effect on economic performance. From Adjusted R square test result it showed independence of environemntal performance, environmental disclosure and environmental cost only being able to influence the dependent variable of economic performance with 15,6% inpercentage. Meanwhile, the rest of the percentage 84,4% was determined by other variables not included in this study.

A study of the application of the physical hydronomics methodology to assess environmental costs of European rivers

2014 ◽  
Vol 25 (3) ◽  
pp. 324-334 ◽  
Author(s):  
Javier Uche ◽  
Amaya Martínez ◽  
Beatriz Carrasquer
Keyword(s):  
Economic Value ◽  
Second Law Of Thermodynamics ◽  
Water Bodies ◽  
Environmental Cost ◽  
Environmental Costs ◽  
Content Type ◽  
Information Tools ◽  
The Status ◽  
The Cost ◽  
Physical And Chemical

Purpose – The purpose of this paper is to check out the status of collected data in European water-related information tools, with the final aim of analyzing the cost to reach the good environmental status in European rivers, from recorded physical and chemical data, within the second law of thermodynamics. Design/methodology/approach – The study is especially focussed in an economical assessment to account for the environmental costs of water bodies according to the Water Framework Directive. The Catchments and Rivers Network System, the most important information tool in Europe nowadays, constitutes the support of this work. This study shows a methodology to estimate the cost to restore water bodies in energy terms with the help of an aggregated indicator, from physical and chemical characteristics of rivers. More over, energy results are converted later into an economic value. This work presents diverse case studies, starting from Garonne, Rhone, Rhine, Danube, Ebro and Seine rivers. Findings – Figures show that total environmental costs in rivers with higher flows are more important due to the more quantity of water to be restored. Making a contrast among years with different hydrological behavior, total environmental costs are higher in wet years due to the more availability of water to be supplied that consequently implies higher withdrawals. However, rivers with higher total environmental cost are not necessarily the most polluted ones. Regarding to the availability of data, although European monitoring and reporting is in progress, homogeneity of data and consensus in the management of basins are needed. Originality/value – Authors make an estimation of costs to reach the good status of European rivers. This work proposes the Exergy as an aggregate indicator to assess cost for water restoration in monetary values. This paper gives a reference of environmental cost as an important instrument to establish costs recovery prices, to be used in the management of water resources as a complement of other kind of indicators.

scholarly journals Environmental cost analysis and reporting to measure environmental performance in realizing eco-efficiency at PT Industri Kereta Api (Persero)

2018 ◽  
Vol 3 (2) ◽  
pp. 169-180
Author(s):  
Basuki Basuki ◽  
Riasty Dewi Irwanda
Keyword(s):  
Environmental Performance ◽  
Design Methodology ◽  
Environmental Cost ◽  
Operating Costs ◽  
Operational Cost ◽  
Content Type ◽  
Descriptive Case Study ◽  
The Cost ◽  
Cost Report

Purpose The purpose of this paper is to simulate the environmental cost reports preparation used to measure environmental performance in realizing eco-efficiency. Design/methodology/approach This research uses a descriptive case study by using environmental cost detail data from 2011, 2012, 2013 and 2014. The research object is PT Industri Kereta Api (Persero) located in Madiun, East Java. Findings The result of the research shows that PT INKA (Persero) has not specifically made environmental cost report. It is found that the percentage of total environmental cost to operational cost tends to increase; the cost which gives the biggest distribution of total environmental cost is the prevention cost. By 2014, the effect of environmental costs on operating costs tended to decrease and during 2012–2014 PT INKA successfully maintained the blue star PROPER and the absence of environmental pollution reports. Originality/value PT INKA’s environmental performance is still well controlled and since its inception in 2014 PT INKA has succeeded in realizing the concept of eco-efficiency.

scholarly journals ENVIRONMENTAL COSTS AND FINANCIAL PERFORMANCE OF OIL AND GAS COMPANIES IN NIGERIA

2021 ◽  
pp. 1-18
Author(s):  
Azubike Oraka
Keyword(s):  
Financial Performance ◽  
Environmental Remediation ◽  
Oil And Gas ◽  
Stock Exchange ◽  
Environmental Cost ◽  
Environmental Costs ◽  
Tobin’S Q ◽  
Compliance Cost ◽  
Tobin's Q ◽  
Oil And Gas Companies

This study ascertains the effect of environmental costs on financial performance of oil and gas companies on the Nigeria stock exchange. The specific objectives are to: Ascertain the effect of Environmental Remediation Cost on Tobin’s Q of Oil and Gas Companies listed on Nigeria Stock Exchange, and evaluate the effect of Compliance Cost on Tobin’s Q of Oil and Gas Companies on the Nigeria Stock Exchange. Ex Post Facto research design was adopted for the study. Data were gathered from the published financial statements of the eleven (11) Oil and Gas companies for eleven (12) years period. The study found that Compliance Cost and Environmental Remediation Cost have significant effect on Tobin’s Q of Oil and Gas Companies listed on Nigeria Stock Exchange. Based on this, the researchers recommended amongst others that since Environmental Remediation Cost and financial performance are positively related, then oil and gas firms should be environmentally friendly to enable them gain competitive advantage, high liquidity and reduced environmental cost in the long run.

scholarly journals TANGGUNG JAWAB LINGKUNGAN DAN INFORMASI BIAYA LINGKUNGAN DALAM PENGAMBILAN KEPUTUSAN MANAJEMEN

2017 ◽  
Vol 9 (2) ◽  
pp. 169
Author(s):  
Andayani Andayani
Keyword(s):  
Production Process ◽  
Environmental Performance ◽  
Iso 14001 ◽  
Environmental Cost ◽  
Environmental Responsibility ◽  
Environmental Costs ◽  
Environmental Reporting ◽  
Cost Information ◽  
Net Profit ◽  
Production Manager

The aim of this research is to know the company’s environmental responsibility, the opinion of the internal accountant to information which has to do with environmental costs and the types of environmental costs is considered important, and also the use of the environmental cost information in taking management decisions.The type of this research is qualitative, and this research is done in PT SIER (Persero), PT SDM Lab., and PT HMS, Tbk. Data is collected by questionnaire, interview, observation, and documentation. Interview is done with the internal accountant, financial manager, and company’s production manager, or the side who represent.The result of this research shows that the company’s environmental responsibility can be known through the result of measurement of environmental performance by identifying through the key elements ISO 14001. The company’s internal accountant has the opinion that environmental costs are the costs which  related to company production process and product influencing company net profit, also costs related to society, company community. Some type of environmental costs were said very important although according to spectrum of environmental costs is stated to have very difficult level in measuring. It happened because there is no the standard of accounting that arrange the problem of environmental reporting and measurement. The company’s internal accountant can play an important role in transforming the data become information about environment by identification environmental costs that is important, informing it as cost information, and integrating the costs in management decisions. Whether or not a cost is environmental, the goal is to ensure that relevant costs receive appropriate attention.

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