Green Strategy Costing: Early Days

What is it about?

A study provides an overview of corporate green strategy developments internationally, including the increasing significance of environmental costs. An exploratory interview-based study is presented of the environmental management and costing practices of 11 Australian corporations as a first step in identifying practices, rationales, and attitudes. With a few exceptions, responses to general environmental information inquiries were similar between large and small companies. However, environmental impact statement (EIS) cost information was used for other purposes by only 1/4 of the larger companies, compared with 2/3 of the smaller companies, while the cost of complying with environmental protection authority and EIS requirements was separately identified by 3/4 of the larger companies and only 1/3 of the smaller companies. Most responses about companies' environmental costing focus were again relatively similar, although half of the larger companies tried to identify the cost of lost inputs and costs of product recycling, while none of the smaller companies appeared to be attempting this.

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