Waste Reduction Program Based on IFAC’S EMA Guideline in Danisco A/S
In 2005 and 2006, Danisco A/S carried out a corporate pilot program, Global Waste Initiative, for testing the adequateness of International Federation of Accountants guidance document on environmental management accounting (EMA) as a tool for production sites in the global bio-tech and food ingredients industrial sector. The chosen pilot sites were diverse from a geographical and production process point-of-view demonstrate differences and similarities. The objectives of the assessments were (1) to investigate EMA as a strategic cost assessment tool for subsequent identification and evaluation of environmental saving initiatives; (2) comparison of EMA results versus annual, reported environmental costs for production sites; (3) to evaluate EMA as a benchmarking tool; and (4) to evaluate required resources for future EMA assessments. The main conclusions of the three pilot assessments were that the overall environment-related costs are considerably higher than the perception of the individual sites and their management. Additionally, the assessments demonstrated a need for strengthening the relation between the environmental and accounting functions of a manufacturing facility to make use of EMA for improvement of environmental efficiency.
KeywordsProduction Site Environmental Cost Global Reporting Initiative Environmental Management System Cost Category
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