Governmental initiatives: the UNIDO (United Nations Industrial Development Organization) TEST approach

Abstract

Experience drawn from several EMA (Environmental Management Accounting) and MFCA (Material Flow Cost Accounting) case studies shows, that establishing an Input/Output balance in values and volumes on a regular basis is still a challenge, as “current” accounting information systems simply don't offer the opportunities needed to easily integrate the data requirements of ISO 14051 into financial and cost accounting, stock management and production planning. The paper visualizes the linkages between current information systems and where there are common recommendations regarding Input/Output balancing. It draws on experiences from Small and Medium Sized Companies (SMEs) in developed and transitional countries. Most of them have been performed within the UNIDO (United Nations Industrial Development Organization) TEST approach, which assists SMEs in performing Cleaner Production Projects based on a mass balance assessment, implementing as well an environmental management system to ensure continual implementation and improvement. The paper goes on to argue, that first the Input/Output balance should be regularly implemented on the system boundary of the company within the financial accounting and stock management system, before more detailed systems on the level of processes should be attempted, as the later needs much more complex adoptions to cost accounting and production planning information systems.