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Due to underground infrastructure and earthworks, the excavated soil and rock (ESR) emerges as the primary construction and demolition (C&D) waste stream in numerous urban areas. The transportation and disposal of ESR entail substantial costs and adverse environmental impacts, necessitating optimized management approaches. However, the environmental and economic evaluation of various ESR disposal methods remains insufficiently explored. This study presents a comprehensive analysis of a city-scale ESR management system through a case study in Shenzhen. This rapidly expanding megacity generated an annual average of 77 million m3 of ESR. We dynamically evaluate the sustainability of ESR management by harnessing a synergistic methodology that integrates material flow cost accounting (MFCA) with life cycle thinking. The findings reveal that cross-regional transportation emerges as the prioritized ESR disposal method, accounting for 72 ± 2% of the total ESR treatment, resulting in greenhouse gas (GHG) emissions of 584 ± 35 kt CO 2 eq. and economic costs of 8358 ± 64 million USD per year. Scenario analysis reveals that sound recycling routes, accompanied by policy support, can yield environmental and economic benefits by reducing GHG emissions by 574 ± 55 kt CO 2 eq. and generating net profits of 248 ± 15million USD per year in the coming decade. This study exemplifies the complementary methodologies supporting sustainable ESR management in Shenzhen while offering valuable insights for other cities in China and beyond. • MFCA and life cycle thinking methods were integrated to examine ESR management. • The ESR treatment flows and their ecological and economic impacts were assessed. • Scenario analysis was conducted to evaluate the future ESR management plans. • ESR recycling consistently yields optimal environmental and economic advantages. [ABSTRACT FROM AUTHOR]

We develop a material flow cost accounting system for planning efficient and inefficient costs in arbitrary production processes. The basis of this accounting system is a material flow model with waste and rejects as the main factors of material losses, which is used to determine efficient and inefficient material demand at quantity center and product unit level. This production theoretical foundation enables an extension of the known material flow cost accounting system by a cost unit accounting and clarifies the relationships to other cost accounting systems. Finally, we discuss the necessary steps to implement material cost accounting as a marginal cost accounting system to provide relevant information for short-term decisions. Image 1 [ABSTRACT FROM AUTHOR]

From the perspective of material flow cost accounting (MFCA), which treats both material and financial flows within a company, this study proposes a corporate waste decomposition model to investigate the effects of material and financial factors on corporate waste generation. The proposed model decomposes waste into the material loss (waste ratio of raw materials [WRMat]), raw material-to-cost ratio (RtCR; material use efficiency), cost-to-sales ratio (or COGSR), total asset turnover ratio (TATR), leverage, and total equity. As an application, the waste decomposition analysis is performed using the log-mean Divisia index (LMDI) method, and 125 listed firms in 5 Japanese manufacturing sectors from 2010 to 2015 are analyzed. The LMDI results show that the RtCR, the most crucial term in MFCA, had the largest effect on increases in waste generation as of 2015; however, this effect is not so robust among sectors over the years, implying that MFCA is valid mainly for specific companies/sectors or years. Also, corporate environmental burdens (waste and carbon emission) are likely to be correlated negatively with leverage and positively with total equity in the models, implying that the financial and stock markets have an essential role in deciding corporate environmental burdens. • A corporate waste decomposition model is proposed to show the benefits of MFCA. • Waste is divided into a material loss, material-to-cost ratio, and financial items. • A decomposition analysis by LMDI is performed for 125 firms in 5 Japanese sectors. • The impact of RtCR on waste is not robust and MFCA seems valid for specific sectors. • Firm size and leverage are essential in deciding corporate waste and carbon emissions. [ABSTRACT FROM AUTHOR]

Abstract Material flow cost accounting analyzes input/output relations of material flows in the production process based on mass balance principles. However, the measured data of a process contains errors representing a mass imbalance in the system such as that of a wastewater treatment plant. Therefore, measured data should be verified before establishing mass balance and, subsequently, material flow cost accounting. Hence, in this work, a novel practical stepwise methodology using data reconciliation technique is introduced to improve the accuracy and certainty of measurements before material flow cost accounting. A full-scale petrochemical wastewater treatment plant was selected to establish this methodology. The presented results of this case study show an error of −3.22% (−35244 t/year) between total input and output streams of wastewater treatment plant demonstrating mass imbalance in the system. However, the overall mass balance could be closed by simultaneously solving the incidence matrix (system of balances). The results revealed that by including data reconciliation into material flow cost accounting, an accurate mass balance can be performed, which is a key element in material flow cost accounting calculations. The comparison results showed a relatively significant difference between material flow cost accounting for reconciled and measured data (unreconciled). The developed approach provides a reliable set of data for implementing material flow cost accounting in the system. Therefore, using this novel stepwise approach will help decision-makers to enhance both financial and environmental performances more confidently and to define appropriate improvement plans. Graphical abstract Image 1 Highlights • Material flow cost accounting was established in a petrochemical wastewater treatment plant. • Mass imbalance was observed between total input and output streams of wastewater treatment plant. • An integrated approach of data reconciliation and material flow cost accounting was introduced. • The integrated approach can yield more accurate and reliable outcomes. • This stepwise methodology can help decision-makers to define appropriate improvement plans. [ABSTRACT FROM AUTHOR]

Abstract In recent years, material flow cost accounting (MFCA) has gradually been recognized in Asia by the standardization of ISO 14051 and 14052 and by the project of dissemination undertaken by the Asian Productivity Organization (APO). However, MFCA is still not used across the board. This study analyzes the characteristics of material flow (MF) management to facilitate the expanded use of MFCA. The research framework of this study investigates the degree of MF management and the sequential relationships among financial factors, MF management, and waste performance, based on a questionnaire survey of non-financial listed companies in Thailand. Fifty-eight percent of the respondent firms answer that they are managing MF information (self-rating). Meanwhile, 50%, 49%, 29%, and 24% of the firms actually disclose the amounts of total waste, hazardous waste, raw materials consumed, and recycled waste, respectively. The results of this study show that respondent firms with MF management (self-rating) are more likely to manage/disclose total waste, hazardous waste, and raw materials consumed than those without it. In terms of financial factors, cost ratio and profitability are likely to affect firm decisions regarding whether to manage the MF. Additionally, MF management is likely to decrease the hazardous waste ratio. The series of results shows that firms in Thailand are more likely to be concerned about hazardous waste management than resource efficiency. Therefore, hazardous waste should probably be thoroughly managed, as a preliminary step in the promotion of MFCA. Highlights • Corporate material flow management in Thailand is analyzed based on the mail survey. • 58% of the respondent firms are managing material flow information (self-rating). • Firms with material flow management well manage (hazardous) waste and raw materials. • Cost ratio and profitability affect whether firms decide to manage material flow. • Material flow management is likely to decrease the hazardous waste ratio. [ABSTRACT FROM AUTHOR]

The optimal use of material and energy by different industries has recently become an issue of great importance due to limited energy resources around the world. Material flow cost accounting (MFCA) has been suggested as a novel management system that can enhance waste management and provide an estimation of actual values of losses. This research aims to apply MFCA to the wastewater treatment unit of the Tabriz Oil Refining Company. In order to establish MFCA, the amount of input and output material, material costs, system costs and energy costs were studied. Using mass balance in all sections of wastewater treatment unit, losses were identified and costs and benefits were established. Results from MFCA calculation indicated that the annual cost of the unit is 28.14 million USD. This study also investigated the effect of changing the type of microorganisms in the biological treatment section that are able to digest high levels of ammonia and hydrogen sulfide and addition of reverse osmosis to the cooling drain section. It was found that the positive product's value increased from 58.92% to 90.76% and negative product's cost reduced from 41.08% to 9.23%. In addition to economic issues, use of these modifications considerably reduces environmental issues due to the release of NH 3 and H 2 S to the environment and contamination of ground water through evaporation ponds. [ABSTRACT FROM AUTHOR]

This research applied Material Flow Cost Accounting (MFCA) to identify the costs of material and energy loss, as well as the opportunity for technology improvement to increase productivity in starch and ethanol productivity in Thailand. The results showed that ethanol production incurred more loss cost than starch production because it entails several conversion processes. Scenario for technology improvement was evaluated and expanded to the broader scale of the whole country to assess the possibility of increasing cassava feedstock in order to meet the AEDP target. The result shows that the Very High Gravity (VHG) and Simultaneous Saccharification and Fermentation (SSF) processes can increase plant capacity and efficiency. Ethanol production from cassava pulp can also play an important role in meeting the Renewable and Alternative Energy Development Plan (AEDP) and utilizing by-product from starch processing, increasing its value and offsetting loss cost from starch production plant. Those improved options in the scenario can help to reduce cassava feedstock amount required to produce ethanol for the AEDP target. Yield improvement can satisfy feedstock requirement without the need of land for plantation expansion, reduce cassava export and allocation of more molasses for ethanol production. [ABSTRACT FROM AUTHOR]

Material flow cost accounting (MFCA) has been developed worldwide as a major tool in environmental management accounting. The International Standard on MFCA was published as ISO 14051 in 2011. In Japan, the Ministry of Economy, Trade and Industry (METI) has been strongly supporting the promotion of MFCA, and the number of companies introducing this tool has been steadily increasing. However, in order to apply MFCA in companies continuously, it is necessary to overcome conflicts between MFCA and existing management perspectives. This paper argues that such conflicts are likely to be caused by the essential features of MFCA, and indicates some theoretical solutions based on organizational design. Then, by looking at three example cases of companies that have succeeded in the continuous use of MFCA, specific countermeasures for dealing with conflicts are investigated. [ABSTRACT FROM AUTHOR]

There is the undisputed need for the coupling of Life Cycle Costing (LCC) and Life Cycle Assessment (LCA) – the most common methods for the evaluation of the life cycle-wide economic and ecological effects of products and production systems in the context of sustainable decision making. However, in published studies both methods are often used in parallel or with little integration. This causes double work in data acquisition and a lack of consistency of the underlying analyses' scopes and, therefore, limits the significance of the analyses results. Further on, no mature theoretical approach for the integration of LCA and LCC exists. To overcome this problem, the paper presents a procedure model for the integrated use of the methods. More specifically, Material Flow Cost Accounting is suggested as a tie between both methods and is extended according to the requirements of life cycle-wide analyses. [ABSTRACT FROM AUTHOR]

Material Flow Cost Accounting (MFCA) is an instrument with a considerable potential for gaining transparency of material (and energy) flows and corresponding costs and, thereby, supporting the systematic striving for a higher degree of resource efficiency. However, a use case from the aluminum industry reveals some restrictions of MFCA due to its focus on material, the input-orientation, and the short-term orientation. Thus, this paper suggests extending the scope of Material Flow Cost Accounting by methodical refinements concerning the modeling of energy flows, divergent flow system outputs, especially revenues, and long-term monetary effects caused by investments. For demonstrating these methodical refinements of Material Flow Cost Accounting, the aforementioned use case is taken up. [ABSTRACT FROM AUTHOR]

Existing research argues that impressive environmental and economic benefits can be and have been achieved with Material Flow Cost Accounting (MFCA). This paper examines the body of literature on MFCA and identifies a limited application of MFCA in comparison to its potential application. Examining the scope of MFCA shows that the methodological proposals and applications are largely focused on production related decisions. So far, the growing (but still limited) body of research on MFCA has not been linked with the conceptual developments in environmental management accounting (EMA). By conducting a literature review based on the EMA framework, additional decision situations and decision makers are identified and the potential benefits of expanding MFCA are discussed. This paper provides a research agenda both for developing MFCA tools and subsequently for spreading them to new areas, where they can contribute to the sustainable development of organizations, the economy and society. Practitioners could benefit from this paper by considering additional areas of applications for MFCA in the specific settings of their company. [ABSTRACT FROM AUTHOR]

Material Flow Cost Accounting (MFCA) combines physical flows and monetary units and is located between energy and material efficiency analyses, environmental management and managerial accounting procedures. Since the development of ISO 14051:2011 research and application in industry increased, but still some theoretical, methodological and practical gaps exist. This Special Volume addresses some of the existing deficits and shows the fertile contribution of MFCA on resource efficiency. As can been seen by the articles and case studies in this Special Volume, MFCA still is continuously spreading into further countries and the methodology is extended, refined and elaborated and increasingly applied in combination with various other tools and concepts. The main challenges are still the continuous implementation of the method in industry and the public dissemination of the results. [ABSTRACT FROM AUTHOR]

This introduction provides an overview of the historical development of Material Flow Cost Accounting (MFCA). From its beginnings within an environmental management project at the textile company Kunert in Southern Germany in the late 1980s and early 1990s to ISO 14051: 2011 passed more than twenty years. This article analyses the development and provides several practical examples. Publicly funded projects had proven that MFCA works for companies and could be applied successfully in order to reduce environmental impact and reduce corporate costs simultaneously. This overview gives a detailed description of a research method, developing into an international standard. To understand the MFCA approach its history and roots have to be considered. [ABSTRACT FROM AUTHOR]

Recent times have seen the business world challenged to improve efficiency by reducing its material and energy usage. Material flow cost accounting has been suggested as a management tool that can assist and a new international environmental management accounting standard, ISO 14051, has emerged for consideration by business. This paper presents a review of extant MFCA literature, the purpose being to develop a research agenda which will provide a foundation for future development of the material flow cost accounting tool. Concerns are raised about the absence of theorising behind material flow cost accounting; the lack of knowledge and application of the tool in practice; the need for survey, interview and statistical research methods to supplement case studies; lack of systematic evidence of the tool's applicability beyond manufacturing and in different firm sizes; and complementarity with other accounting tools used to improve performance. An agenda identifying promising avenues for research, the scope of application within companies and broadening of methods for investigation is then outlined. [ABSTRACT FROM AUTHOR]

Waste recovery has become one of the most important strategies to reduce environmental issues and improve economic performance in industry. Thus, different systematic approaches have been developed for waste recovery. However, most of the developed waste recovery approaches do not account for the hidden cost incurred from various processing steps as a criterion for prioritisation of waste recovery. This aspect can be determined by the concept of material flow cost accounting (MFCA). Hence, in this work, a novel MFCA-based approach is developed for prioritisation of waste recovery with consideration of hidden costs embedded in process streams. Two case studies are solved to illustrate the developed approach. It can be seen that hidden unit cost (HUC), carry-forward cost (CFC), amount and quality of discharged waste are important factors that significantly affect the prioritisation results. The developed approach then balances the trade-off among these factors to determine the minimum total hidden cost (THC) of discharged waste, and thus improve the economic and environmental performances of an industrial process. [ABSTRACT FROM AUTHOR]

Abstract: Most breweries implement enterprise resource planning (ERP) systems to manage their orders, inventory, and finance and customer information without integrating it with other systems. Breweries can leverage the information sharing and visibility between ERP and material flow cost accounting (MFCA) systems by integrating these disparate systems to generate waste information for improved waste-reduction decisions. Brewery waste-reduction decisions have been based on insufficient waste information with opportunities for cost saving being lost. This paper explores the integration of ERP and MFCA systems to provide waste information in support of waste-reduction decisions in a South African brewery. A case study was conducted on a South African brewery to determine the extent and adequacy of waste information generated from its ERP database system and how its integration with MFCA can support and improve waste-reduction decisions. It was found that there is lack of integration among the databases of the various divisions within the brewery. The use MFCA to capture waste cost information was absent in this brewery since existing approach was based on variable costing while other waste-related costs are classified under overhead costs. Integrating ERP and MFCA systems will result in the availability of sufficient waste cost information. This paper concludes that the integration of ERP and MFCA by breweries will decrease errors of visibility of waste cost information for improved waste-reduction decisions. [Copyright &y& Elsevier]

To develop sustainable cropping systems, the coherence between economic, environmental, and energy aspects must be considered. We aimed to assess the sustainability of corn (Zea mays) production using four tillage systems which varied in the intensity of soil disturbance (i.e., conventional till with moldboard plow (MP), conventional till with chisel plow (CP), strip-tillage (ST), and no-till (NT)) by performing life cycle assessment (LCA) analysis and Material Flow Cost Accounting (MFCA). It is common that material and energy wastage is not considered in sustainability assessment studies. When material and energy wastes are calculated in monetary terms, the hidden costs of production will be revealed. Simultaneous application of LCA and MFCA methods in sustainability assessments can provide such valuable information. Cradle-to-farm gate was considered as the system boundary in LCA-MFCA. The total annual energy input for corn production using MP, CP, ST, and NT was found to be 37472 MJ ha−1 (3092 MJ t−1), 36384 MJ ha−1 (3290 MJ t−1), 33717 MJ ha−1 (3309 MJ t−1), and 32889 MJ ha−1 (2764 MJ t−1), respectively. As energy demand increased, yield per ha also increased in all tillage systems except in NT in which yield increase was concurrent with improved energy efficiency. The gross value was calculated as 1470 $ ha−1 (121 $ t−1) for MP, 1446 $ ha−1 (131 $ t−1) for CP, 1380 $ ha−1 (128 $ t−1) for ST, and 1334 $ ha−1 (112 $ t−1) for NT system. The economic indices for each tillage system were computed. Our results showed that eliminating those negative products in corn production can increase farmers' net benefit by 200 $ ha−1. Global warming potential, acidification potential, eutrophication potential, ozone depletion potential, and photochemical ozone creation were selected to reflect the environmental impact associated with corn production in each tillage system. From an environmental standpoint, NT and MP performed much better than CP and ST. In three important impact categories (i.e., global warming potential, acidification, and eutrophication potential) MP, and in the other two impact categories (i.e., photochemical ozone creation potential and ozone depletion potential) NT system performed best among all tillage systems. It can be concluded that NT showed the best performance in terms of energy, economic and environmental indicators for corn production followed by MP system. [Display omitted] • Sustainability of corn production under different tillage systems was evaluated using LCA-MFCA approach. • No-till had lowest energy input and specific energy, and the best energy use efficiency and energy productivity. • No-till increased net profit and decreased production cost. • No-till reduced fuel consumption, environmental burdens and working time in corn production. • Eliminating negative products in corn production can increase farmers' net benefit by 200 $ ha−1. [ABSTRACT FROM AUTHOR]

Abstract: The article provides definitions for environmental accounting and environmental management accounting based on the approach developed for the United Nations Division of Sustainable Development UN DSD/DESA. It presents the basic framework for assessing corporate environmental costs as well as materials flows (including energy and water) and their costs. The paper is based on experiences from applying the UN DSD EMA framework in company workshops and case studies mainly in Austria. It especially describes how to check for data consistency within different information systems, like the list of accounts, stock management, production planning and process engineering. Common hurdles for obtaining data from different information systems are described and solutions for improved consistency of data in an organization are presented. It provides a detailed example of an assessment in a brewery in the excel tool developed to assist in the application of the UN DSD EMA approach. [Copyright &y& Elsevier]

The Expert Working Group on “Improving the Role of Government in the Promotion of Environmental Management Accounting (EMA)” was set up by the United Nations Division for Sustainable Development (UN DSD) in cooperation with a number of government agencies and non-governmental experts to promote Environmental Management Accounting (EMA) through publications, pilot projects and by establishing an international forum for discussion on the role of governments in the promotion of EMA.EMA, Environmental management accounting represents a combined approach that provides for the transition of data from financial accounting, cost accounting and mass balances to increase material efficiency, reduce environmental impacts and risks and reduce costs of environmental protection. EMA is performed by private or public corporations, but not by nations and has a financial as well as a physical component.The core focus of environmental management accounting and of the EMA UN DSD methodology is assessment of total annual environmental expenditure on emission treatment, disposal, environmental protection and management. In addition, and that is new and challenging for most companies, the material purchase value of all non-product output and its production costs are added. This total sum often provides a frightening picture of total annual costs of inefficiency and gets companies to improve their information systems and material efficiency options, which is the goal in the light of cleaner production.The first book published by the Expert Working Group, Environmental Management Accounting—Procedures and Principles (Jasch, C., United Nations, New York, 2001), defines principles and procedures for EMA, with a focus on techniques for quantifying environmental expenditures or costs, as a basis for better controlling and benchmarking purposes. The methodology excludes costs external to the company (so-called externalities, e.g. environmental and social effects that occur to the general public), but focuses on comprehensive assessment of direct annual expenditure on emission treatment, environmental protection and management as well as wasted material and energy input (efficiency losses in production). Firstly, total annual expenditure is assessed, then improvement options, savings and investment projects as well as product prices can be (re-)calculated. The method is currently applied in several case studies. The following summary provides some of the core definitions and generic assessment tables. [Copyright &y& Elsevier]

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. [ABSTRACT FROM AUTHOR]