FACILITATING A GREENER ENVIRONMENT THROUGH MANAGEMENT ACCOUNTING

Abstract

Worldwide natural resources such as coal and water are becoming scarcer each year. Individuals as well as companies need to use natural resources sparingly and responsibly, decreasing waste production. It is not only about the usage but also about the waste that occurs. I analysed the annual statements on the websites of the Top 10 companies in 2012 and compared it to 2008 and 2003. A WordleTM was created for each year based on 16 key words to see whether awareness grew with regard to for instance sustainability and the environment. This lecture is informational and exploratory in nature as it highlights the demand on natural resources as well as the steps that can be taken to minimise the impact on natural resources. Companies seem to become more aware of what they do to the environment and would like to take action where ever they can in order to be acceptable companies to investors. In the early years companies did what could be called “green washing” to comply with legalities however it seems that this has changed to a true awareness and “green” companies are becoming more and more competitive. In order to assist companies to become even more aware of waste and their environmental responsibility, companies may need to be made more aware of the use of management accounting tools such as Activity Based Costing (ABC) and Material Flow Cost Accounting (MFCA. simultaneously.