TY - JOUR

T1 - Eco-Efficiency in Corporate Budgeting

AU - Burritt, Roger

AU - Schaltegger, Stefan

PY - 2001/5/1

Y1 - 2001/5/1

N2 - Any measure of eco‐efficiency requires financial information, for calculating the numerator, and physical information about the environment, for calculating the denominator. Accounting and finance staff provide key financial information about the numerator in eco‐efficiency calculations. Hence, for eco‐efficiency measures to be calculated and for the measures to add value it is essential for them to be integrated with accounting and financial management processes such as budgetary control. Calculating measures of eco‐efficiency is not enough on its own to ensure corporate value is added. Accounting and finance staff have to be involved in the planning of future long‐term eco‐efficiency improvement. If value added from continuous improvement in eco‐efficiency activities is to be anticipated it is necessary for eco‐efficiency and budgeting to be integrated. The paper provides some conceptual and practical guidance to help managers achieve this integration. Recently a number of companies have suggested that corporate budgeting no longer serves a purpose in their organizations (e.g. in network organizations). By demonstrating that, if information related to the neglect of potential environmental protection activities is ignored, the costs to business can be very high, this suggested change in practice is considered. It is concluded that a set of contingent guidelines need to be developed for budgeted eco‐efficiency situations to help management and regulators assess value‐added opportunities from using this new environmental management tool.

AB - Any measure of eco‐efficiency requires financial information, for calculating the numerator, and physical information about the environment, for calculating the denominator. Accounting and finance staff provide key financial information about the numerator in eco‐efficiency calculations. Hence, for eco‐efficiency measures to be calculated and for the measures to add value it is essential for them to be integrated with accounting and financial management processes such as budgetary control. Calculating measures of eco‐efficiency is not enough on its own to ensure corporate value is added. Accounting and finance staff have to be involved in the planning of future long‐term eco‐efficiency improvement. If value added from continuous improvement in eco‐efficiency activities is to be anticipated it is necessary for eco‐efficiency and budgeting to be integrated. The paper provides some conceptual and practical guidance to help managers achieve this integration. Recently a number of companies have suggested that corporate budgeting no longer serves a purpose in their organizations (e.g. in network organizations). By demonstrating that, if information related to the neglect of potential environmental protection activities is ignored, the costs to business can be very high, this suggested change in practice is considered. It is concluded that a set of contingent guidelines need to be developed for budgeted eco‐efficiency situations to help management and regulators assess value‐added opportunities from using this new environmental management tool.

KW - Sustainability sciences, Management & Economics

KW - Umweltbezogenes Management

KW - Umweltbilanz

KW - Effizienzmessung

KW - efficiency

KW - Corporate finance

KW - Integration

KW - Environmental Impact

UR - https://www.mendeley.com/catalogue/66ea84e7-4b31-3578-9f33-6999889f24e8/

U2 - 10.1108/09566160110389924

DO - 10.1108/09566160110389924

M3 - Journal articles

VL - 12

SP - 158

EP - 174

JO - Environmental Management and Health

JF - Environmental Management and Health

SN - 0956-6163

IS - 2

ER -