An Empirical Case of Applying MFA on Company Level

Abstract

Material flows analysis (MFA) is used regularly in tracing and estimating domestic and international natural resource’s usage. This article examines the use of MFA to model and manage the use of natural resources within a large Chinese chemical company. This company, situated within the China-ecology industry zone, provides an excellent case of how MFA can be used on the level of an individual company to analyze natural resources’ flows for an improved understanding and management of the economical, environmental and socio-economic consequences of industrial production processes. Its deployment further supports efficient production investment policies. The case study supports the assumption that MFA is particularly suited on a company level because the required data can more easily by collected and the effect of an MFA application can easily be weighted and calculated. MFA can help a company to leverage its resources and its investment decisions. Due to the fact that the MFA method considers all possible materials related to the transformation processes, (including easy-omitted materials such as steam which has no direct monetary value), MFA offers data on environmental emission factors that can be incorporated into green GNP accounts.