Eco-Controlling is a management tool based on the concept of a material and energy flow accounting. It is an instrument of precise and continuous formulation of targets, progress review, analysis of deviations and reformulation of new targets. It's aim is to provide the management with the information it needs in order to integrate environmental and economic targets in future business – in other words, to achieve a high level of so-called eco-efficiency (added value per added pollution). To implement an integrated Eco-Controlling the following steps have to be taken: Step 1: Definition of an account framework and the management accounting system. With this accounting framework the energy and material data are collected. Step 2: Allocation of the collected energy and material flow data to cost centers (processes) and cost carriers (products). Step 3: Because emissions have different environmental impacts they have to be weighted. There are several methods for weighting the environmental harmfulness of economic activities. One either uses performance indicators, such as “tons CO2 per $ added value”, or classification models, which try to make the environmental impact of different pollutants comparable. Step 4: In order to achieve a higher eco-efficiency, the production-, investment- and sales-planes have to be brought in line with the environmental strategy. Step 5: The strategy can only be successfully implemented, if the management incentive systems are adapted to the new requirements of eco-efficiency. Benchmarking, meaning comparing the company's environmental management systems with the best management practice, can give valuable insights. Eco-Controlling is a decision-supporting tool which closely links the environmental with the financial performance of a company. It is a prerequisite for strategic planning, environmental reporting, and it is an essential element of the recently adopted European Community eco-audit scheme.
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