Abstract
One of the priorities of the modern economy is the optimal use of natural resources in economic activity. This is because the organization and management of production impacts the environment, which in turn affects both the well-being of society and the indicators of economic development. Which is why methodology and practice of public non-financial reporting reflecting indicators related to the conservation and assessment of natural resources, pollution control, waste management and recycling, and creating emission standards are actively developing. Environmental costs are becoming an important tool for making informed management decisions aimed at harmonizing the economy and the environment. At present, despite a large number of methodical developments, there is no solid theoretical basis for the formation of environmental indicators that adequately characterize the interaction of the economy and the environment and economic decision-making at all levels. The article clarifies the content, classification, performance evaluation system, environmental cost assessment methods for their application in management activities for deeper analysis, modelling and predicting economic phenomena and processes within the framework of the concept of sustainable development. The authors show approaches to the valuation of anthropogenic damage to nature, determined by the disproportionateness of natural and value indicators; the lack of prices of non-market goods, great uncertainty about the true value; the duration of the effects of man-made impacts and the long-term investment in environmental protection. Modern approaches to modelling and interpretation of results are generalized, as well as the possibilities of developing new (or improving existing) models for optimizing environmental costs. The direction of analysis of environmental indicators in the existing management system has been defined, in particular, through the study of non-financial reporting, which acts as a basis for calculating resource utilization, environmental quality and sustainability.
Highlights
The reporting requirements for organizations are beginning to change
The relationship between the two types of costs is supposed to be divergent: as environmental costs increase, the cost of damages should be reduced, and vice versa. Such an approach to environmental costs allows us to give an economic justification to the goals of environmental activities by assessing the economic damage from environmental violations and correlating the costs and benefits of environmental measures, as well as to show the validity of the assessment of natural resources by determining the damage from the loss of a unit of this resource as a result of environmental violations, and propose various methods for evaluating damage [6, 24, 25, 26, 27]
As part of the concept of sustainable development, environmental costs have become an important tool for assessing economic development and the well-being of society
Summary
The reporting requirements for organizations are beginning to change. Investors take into account financial and non-financial factors in making strategic decisions, which allows them to assess the strategic investment attractiveness of the company, as well as to predict the duration of the company's activities. Only financial indicators, formed in standard reporting forms, are not enough to assess the prospects for the company's development. Economic decision-making requires accounting to fully and reliably reflect the full and true range of relationships between strategic, managerial, operational, financial and non-financial components, showing how the organization implementing its successful business model, uses a variety of capitals (financial, production, intellectual, human, natural and social), interacts with the external environment and assesses its ability to continue to operate on for the sufficient time. In 1997, for example, the Global Reporting Initiative (GRI) was established by the Environmentally Responsible Business Coalition, which developed the "extended" report needed to provide a sustainable development summary to all the interested parties
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