# Presentation: 808461

## Energy & Materials Tracking

- Terri Goldberg, NEWMOA

## Energy, Materials, & Cost Tracking: Workshop Outline

- Background
- Environmental Management Accounting
- Overview of EMFACT Project – Q & A
- Demonstration of PROJECT
- Next Steps & Discussion

## Your Experience

- What’s Your Experience?
- Do Companies/Firms Do a Good Job of Tracking Energy & Materials Flows & Associated Costs?
- If So, Under What Circumstances?
- If Not, Why Not?

## Background

- Evaluating Financial Costs & Benefits of P2
- Identifying Hidden Costs & Benefits
- Evolved into Environmental Management Accounting
- Critical Role of Materials & Energy Tracking
- Linking Improved Environmental Protection & EMFACT – Understanding Full Costs

## Environmental Management Accounting (EMA)

**   ****EMA can be defined as the identification, collection, estimation, analysis, internal reporting, & use of materials & energy flow information, environmental cost information, & other cost information for both conventional & environmental decision-making within an organization**

## EMA Key Points

- Focuses on costs internal to the company; EMA does not include external costs to individuals, society, or the environment
- Places emphasis on accounting for environmental costs
- Encompasses environmental and other cost information, & information on physical flows & fates of materials & energy
- Can be used for most types of management activity or decision-making within an organization, but is particularly useful for proactive environmental management
- 	Incorporates & integrates two of the three building blocks of sustainable development - environment & economics

## Benefits of EMA

**Examples of the Benefits of EMA –**
**Pollution Prevention **
**Design for Environment **
**Environmental Life Cycle Assessment/Costing/Design **
**Environmental Supply Chain Management **
**Environmentally Preferable Purchasing **
**Extended Producer/Product Responsibility **
**Environmental Management Systems **
**Environmental Performance Evaluation & Benchmarking **
**Environmental Performance Reporting **
-      EMA is not merely one environmental management tool among many - rather, EMA is a broad set of principles & approaches that provides the materials/energy flow & cost data critical to the success of many other environmental management activities

## Importance of EMA 

-    Range of decisions affected by environmental costs is generally on the rise; EMA is becoming increasingly important not only for environmental management decisions, but for routine management activities, such as:
- Product & process design
- Cost control & allocation
- Capital budgeting
- Purchasing
- Supply chain management
- Product pricing
- Performance evaluation

## Benefits of EMA to Firms

**Potential Benefits of EMA to Industry—**
- More accurately track & manage the use & flows of energy & materials, including pollution/waste volumes, types, & fate
- More accurately identify, estimate, allocate, & manage/reduce costs, particularly environmental types of costs
- More accurate & comprehensive information to support the establishment of & participation in voluntary programs to improve environmental performance
- More accurate & comprehensive information for the measurement & reporting of environmental performance, thus improving company image with stakeholders, such as customers, local communities, employees, government, & finance providers
- Other Benefits???

## EMARIC

-    EMARIC’s mission is to promote the integration of environmental cost information & materials & energy flow information into routine management decision-making of private & public sector organizations, as a support for improved environmental performance
-   Focus on Information Sharing Online

## Some Available Tools

- P2 Finance Software – needs upgrade
- E2 Finance Software – needs upgrade
- Proprietary Software Tools
- EPA’s Project Software
- Others???

## More EMA Information

**For more EMA information visit:**
**www.emawebsite.org/about_ema.htm**
**www.newmoa.org/prevention/topichub/**

## Key Barriers to EMA

- With all of the Benefits Outlined Above--
- Why Don’t More Firms to EMA?
- What Are the Barriers to EMA?
**BRAINSTORM IDEAS**

## EMFACT Project

- Successful P2 is based on an entity’s ability to understand & improve its choice & use of materials & the associated financial impacts
- EMFACT project builds upon the current scientific & engineering applications of EMA as a critical aspect of sustainable production & P2
- NEWMOA, MA OTA, EPA Collaboration

## EMFACT Project

**    ****No readily available & accessible, user friendly, comprehensive, low cost tool available in the US to support EMA implementation**
**	**
**EPA Support – Collaborative Science & Technology Network for Sustainability **
**Goals:**
**increase the implementation of P2 options by improving the ability of private sector entities to quantify & evaluate materials & energy uses & flows in their operations & to more effectively evaluate the cost & other impacts of making product & operational changes to improve their sustainable production**
**enable public & private sector environmental assistance providers & others to more effectively help their clients evaluate materials & energy use & associated waste & losses & the potential savings from P2 investments to address those releases to the environment **
**help companies & government agencies quantify the pollution reductions & associated costs saving from investments in implementing P2 & E2**

## Audience for EMFACT Tool

- Federal, State, & Local Government Environmental Assistance Providers
- Private Sector Assistance Providers
- MEPs & Business Assistance Providers
- Companies Running Greening the Supply Chain Initiatives
- Performance Track & Other Environmental Leaders

## EMFACT Tool

- Upgrade P2 & E2 Finance
- Apply Ease-of-Use of EPA’s Project Tool
- OTHER IDEAS??
- SUGGESTIONS?

## EMFACT Project Workplan

**Research & ID Existing Tools**
**Seeking Advise & Assistance**
**Develop Advisory Group**
- Procure Contractor Support for Developing Tool
- Pilot & Test tool
- Widespread Dissemination & Training
- Evaluation

## Next Steps for the Project

- Seeking Participants in Advisory Group
- Seeking Ideas for Existing Tools to Examine
- Questions????
- Comments????

## Rest of Workshop

- Demonstration of EPA’s Project
- Further Discussion

## Further Information

- Terri Goldberg, NEWMOA, Tgoldberg@newmoa.org;
-    (617) 367-8558 x302
- Rick Reibstein, MA OTA Rick.Reibstein@state.ma.us;
-    (617) 626-1062