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Extra info for Environment And the Oecd Guidelines for Multinational Enterprises: Corporate Tools And Approaches

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For example, environmental reporting requirements will slow implementation if they mandate only data about emissions and non-environmental costs of production. The same is true of voluntary reporting guidelines. For example, the United Nations is working with the Global Reporting Initiative to develop reporting requirements which encourage companies to account for their environmental costs. Another obstacle is the lack of international standards for EMA methodology, compounded by the fact that there are no international standards for financial cost accounting.

Org). The sector projects are at varying stages of development. Launched in 1999, the Mining, Minerals and Sustainable Development project is the most developed one. A three-year process of extensive and intensive consultation led to a comprehensive report outlining ways to tackle the industry’s sustainability challenges, including managing environmental impacts (WBCSD and IISD, 2002). Initiatives by the financial sector can have an impact that goes far beyond the environmental impact of the sector’s own players.

For example, it can be used to assess the environmental costs associated with producing a particular product, or with a particular manufacturing process. In standard financial management accounting systems, environmental costs are not separated out – they are assigned to general overheads. By accounting separately for the full range of environmental costs, EMA allows managers to identify least-cost approaches to production, and to make better decisions about capital investment, cost allocation, purchasing activities, supply chain management and product pricing.

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