Acc Accou ount nting ing for or Sust Sustaina ainabili bility - - PowerPoint PPT Presentation

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Apr 10, 2024 29 likes •250 views

SESSION 4: Acc Accou ount nting ing for or Sust Sustaina ainabili bility ty By Nuwan Gunarathne Lecturer, Department of Accounting, University of Sri Jayewardenepura SESSION 4: Account Accounting ing for or Sustaina Sustainabilit

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SESSION 4:

Acc Accou

  • unt

nting ing for

  • r Sust

Sustaina ainabili bility ty

By Nuwan Gunarathne Lecturer, Department of Accounting, University of Sri Jayewardenepura

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SESSION 4:

Account Accounting ing for

  • r Sustaina

Sustainabilit bility

Environmental Management Accounting (EMA)

  • Represents a response of management accounting
  • Lacks a definite boundary or definition
  • Has emerged as an interface between management accounting and environmental

management

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SESSION 4:

Account Accounting ing for

  • r Sustaina

Sustainabilit bility

Environmental Management Accounting (EMA)

Identification, collection, analysis and use of Physical information on energy, water and materials (wastes) Monetary information on environment-related costs, earnings and savings

Users

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SESSION 4:

Account Accounting ing for

  • r Sustaina

Sustainabilit bility

Types of EMA systems

Monetary EMA (MEMA) expressed in monetary units Physical EMA (PEMA) expressed in physical units

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SESSION 4:

Account Accounting ing for

  • r Sustaina

Sustainabilit bility

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SESSION 4:

Account Accounting ing for

  • r Sustaina

Sustainabilit bility

Dimensions of EMA

  • Time frame (past, current or future)
  • Length of time frame (short term vs. long term)
  • Routineness (ad hoc vs. routine)
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SESSION 4:

Account Accounting ing for

  • r Sustaina

Sustainabilit bility

Comprehensive EMA Framework

EMA

Monetary EMA Physical EMA Short term focus Long term focus Short term focus Long term focus

Past oriented

Routinely generated infor

Ad hoc infor

Future oriented

Routinely generated infor Ad hoc infor

Burritt et al. (2002)

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SESSION 4:

Account Accounting ing for

  • r Sustaina

Sustainabilit bility

EMA techniques

  • Accounting for energy
  • Carbon accounting
  • Accounting for water
  • Waste accounting
  • Material flow cost accounting
  • Environmental capital budgeting
  • Environmental activity based costing
  • Life cycle analysis
  • Sustainability balanced scorecard
  • Environmental impact assessment
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SESSION 4:

Account Accounting ing for

  • r Sustaina

Sustainabilit bility

Comprehensive EMA Framework

EMA

Monetary EMA Physical EMA Short term focus Long term focus Short term focus Long term focus

Past oriented

Routinely generated infor

Ad hoc infor

Future oriented

Routinely generated infor Ad hoc infor

Burritt et al. (2002)

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SLIDE 10

SESSION 4:

Account Accounting ing for

  • r Sustaina

Sustainabilit bility

Comprehensive EMA Framework

EMA

Monetary EMA Physical EMA Short term focus Long term focus Short term focus Long term focus

Past oriented

Routinely generated infor

Ad hoc infor

Future oriented

Routinely generated infor Ad hoc infor

Burritt et al. (2002)

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SLIDE 11

SESSION 4:

Account Accounting ing for

  • r Sustaina

Sustainabilit bility

Comprehensive EMA Framework

EMA

Monetary EMA Physical EMA Short term focus Long term focus Short term focus Long term focus

Past oriented

Routinely generated infor

Ad hoc infor

Future oriented

Routinely generated infor Ad hoc infor

Burritt et al. (2002)

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SLIDE 12

SESSION 4:

Account Accounting ing for

  • r Sustaina

Sustainabilit bility

Comprehensive EMA Framework

EMA

Monetary EMA Physical EMA Short term focus Long term focus Short term focus Long term focus

Past oriented

Routinely generated infor

Ad hoc infor

Future oriented

Routinely generated infor Ad hoc infor

Burritt et al. (2002)

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SLIDE 13

SESSION 4:

Account Accounting ing for

  • r Sustaina

Sustainabilit bility

Comprehensive EMA Framework

EMA

Monetary EMA Physical EMA Short term focus Long term focus Short term focus Long term focus

Past oriented

Routinely generated infor

Ad hoc infor

Future oriented

Routinely generated infor Ad hoc infor

Burritt et al. (2002)

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SLIDE 14

SESSION 4:

Account Accounting ing for

  • r Sustaina

Sustainabilit bility

Comprehensive EMA Framework

EMA

Monetary EMA Physical EMA Short term focus Long term focus Short term focus Long term focus

Past oriented

Routinely generated infor

Ad hoc infor

Future oriented

Routinely generated infor Ad hoc infor

Burritt et al. (2002)

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SESSION 4:

Account Accounting ing for

  • r Sustaina

Sustainabilit bility

EMA in context

  • Not merely an environmental management tool among others
  • A broad set of accounting principles and approaches that provide information for the

successful implementation of environmental strategies

  • Includes a wide array of accounting practices and acts as the common thread that

supports environmental strategies

  • New practices are being introduced or existing practices adopted day-by-day
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SESSION 4:

Account Accounting ing for

  • r Sustaina

Sustainabilit bility

EMA development stages

Stage 1 - Compliance Stage 2 – Realization Stage 3 - Environmental Integration

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Compliance Conservation Integration

  • Focus on main items
  • Key stakeholder engagement
  • Selected EMA practices

Vision

SESSION 4:

Account Accounting ing for

  • r Sustaina

Sustainabilit bility

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Compliance Conservation Integration

  • Focus on main items
  • Key stakeholder engagement
  • Selected EMA practices

Vision

  • Comprehensive coverage
  • All stakeholder engagement
  • Inclusion in daily management (EKPIs)

SESSION 4:

Account Accounting ing for

  • r Sustaina

Sustainabilit bility

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SESSION 4:

Account Accounting ing for

  • r Sustaina

Sustainabilit bility

EMA to Sustainability Management Accounting (SMA)

  • When social dimensions are integrated into existing EMA systems there will be SMA
  • Social side of sustainability is the least developed
  • Accounting for the social dimension of sustainability is challenging
  • intangible
  • qualitative nature
  • lack of consensus on relevant criteria
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SESSION 4:

Account Accounting ing for

  • r Sustaina

Sustainabilit bility

Pathways for professions

  • At present, the majority of sustainability accounting skills and knowledge comes from

external training and in-house training

  • Universities & PAB should be proactive to cater to new demands of the work place
  • Incorporate accounting, engineering, architecture, physical sciences, etc
  • Trans-disciplinary approach for sustainability education

(approaching a problem from a number of different perspectives beyond discipline boundaries)

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Lighting candles….

  • At the Department of Accounting, USJ, we have introduced SMA and sustainability

reporting

  • Objective is not to offer these subjects in few years time
  • Students work on different projects to understand the trans-disciplinary nature of

sustainability

SESSION 4:

Account Accounting ing for

  • r Sustaina

Sustainabilit bility

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Thank hank y you

  • u