Theoretical Developments In Environmental Management Accounting And The Role And Importance Of MFCA

Open access


Environmental Management Accounting (EMA) is a broader concept of accounting which uses accounting tools and practices to support company-internal management decision making on environmental issues and its impact on company performance. Research on EMA can be divided into two broad categories: theoretical and empirical studies. The theoretical studies based on framework that aim to explain the nature of the relationship between economic and environmental performance and the adoption of Environmental Management Accounting in a business environment. The empirical studies follow two lines of research, instrumental studies aim to empirically test the relationships hypothesized in theoretical studies; descriptive studies are intended to examine the factors that encourage the adoption of EMA. This review paper examined the role of MFCA in identifying non-product output (waste) and its impact on an organisations profitability. Various case studies are examined in this article that demonstrates MFCA to an important environmental management tool to ensure future sustainability of an organisation.

[1] Abdel-Kader G.M. (2011) - Review of Management Accounting Research. United Kingdom. Palgrave Macmillan (63-65).

[2] Albelda E. (2011) - The role of management accounting practices as facilitators of the environmental management: Evidence from EMAS organisations. Sustainability Accounting, Management and Policy Journal (online), 2(1):76-100. Available: (accessed 9 June 2014).

[3] Ambe M.C. (2007) - Environmental Management Accounting in South Africa. Status, challenges and implementation framework. D. Tech. Tshwane University of Technology.

[4] Bennett M., Schaltegger S., Zvezdov D. (2013) - Exploring Corporate Practices in Management Accounting for Sustainability (online), 1-56. Available: (accessed 15 March 2014).

[5] De Beer P., Friend F. (2006) Environmental accounting: a management tool for enhancing corporate environmental and economic performance. Ecological Economics, 58 (3): 548-560.

[6] Domil A.E., Peres C., Peres I. (2010) - Capturing environmental costs by using activity based costing method. Economic Science Series (online), 719-721. Available: (accessed 10 October 2013).

[7] Environmental Strategies (online). (2013). Available: (accessed 18 March 2014).

[8] Hyrslova’ J., Vagner M., Palasek, J. (2011) - Material Flow Cost Accounting (MFCA)- Tool For The Optimization of Corporate Production Processes. Business, Management and Education 9(1): 5-18.

[9] Japanese Industrial Standards committee (2007) - International standardization committee for Environmental Management Accounting. Preliminary proposal for the International Standardi-zation of Material Flow – Based Environmental Management Accounting for ISO TC 207: 1-3, 10-11.

[10] Jasch C. Schnitzer H. (2002) - Environmental Management Accounting. How to profit from environmental protection. EMA- environmental management accounting pilot testing.

[11] Jasch C.M. (2008) - Environmental and Material Flow Cost Accounting - Principles and Procedures. Eco-Efficiency in Industry and Science, 25. Heidelberg: Springer-Verlag.

[12] Jonall P. (2008) - Environmental Management Accounting (EMA), Management Accounting including Environmental Management: 2.

[13] Khalid F.M., Lord B., Dixon R. (2012) - Environmental management accounting implementation in environmentally sensitive industries in Malaysia. 6th NZ Management Accounting Conference. University of Canterbury, New Zealand.

[14] Ministry of Economy, Trade and Industry of Japan (METI) (2010). Environmental Management Accounting: MFCA Case Examples; METI: Tokyo, Japan.

[15] Olson O., Jonall P. (2008) - Environmental Management Accounting (EMA), Management Accounting including Environmental Management – a literature review.

[16] Scavone G.M. (2006) - Challenges in internal environmental management reporting in Argentina. Journal of Cleaner Production (online), 14:1276-1285. Available: (accessed 23 October 2013).

[17] Schaltegger S., Bennett M., Burritt R.L., Jasch C. (2010) - Eco-efficiency in industry and science. Environmental Management Accounting for Cleaner Production. 5th edition. Springer Science and Business Media. UK.

[18] Schmidt M., Nakajima M. (2013) - Material Flow Cost Accounting as an approach to improve resource efficiency in manufacturing companies. Resources (online), 2:358-369. Available: (accessed 13 March 2014).

[19] Sygulla, R., Bierer, A., and Goetze, U. (2011). Material Flow Cost Accounting – Proposals for Improving the Evaluation of Monetary Effects of Resource Savings Process Designs. 44th Conference on Manufacturing Systems (online). Wisconsin, USA.

Foundations of Management

The Journal of Warsaw University of Technology

Journal Information

CiteScore 2017: 0.28

SCImago Journal Rank (SJR) 2017: 0.198
Source Normalized Impact per Paper (SNIP) 2017: 0.159

Cited By


All Time Past Year Past 30 Days
Abstract Views 0 0 0
Full Text Views 261 261 47
PDF Downloads 189 189 30