Environmental Financial Reporting, Ecoefficiency, Improving Environmental Performance

The following items are listed in an environmental financial statement (issued as part of an environmental progress report):

Environmental benefits (savings, income, and cost avoidance):

• Ozone-depleting substances cost reductions
• Hazardous waste disposal cost reductions
• Hazardous waste material cost reductions
• Nonhazardous waste disposal cost reductions
• Nonhazardous waste material cost reductions
• Recycling income
• Energy conservation cost savings
• Packaging cost reductions

Environmental costs:

• Corporate-level administrative costs
• Auditor fees
• Environmental engineering
• Facility professionals and programs
• Packaging professionals and programs for packaging reductions
• Pollution controls: Operations and maintenance
• Pollution controls: Depreciation
• Attorney fees for cleanup claims, and notices of violations (NOVs)
• Settlements of government claims
• Waste disposal
• Environmental taxes for packaging
• Remediation/Cleanup: On-site
• Remediation/Cleanup: Off-site

In the environmental benefits section of the report, three types of benefits are listed: income, savings, and cost avoidance. Now, consider the following data for selected items for a four-year period:

\fRequired: 1. Prepare a partial environmental financial statement, divided into benefit and cost sections for 20x3, 20x4, and 20x5. Environmental Financial Statement (Partial) For 20x3, 20x4 and 20x5 20x3 20x4 20x5 Environmental benefits: $ Environmental costs: 2. Evaluate the outcomes. Does this result support or challenge ecoefficiency