Skip to main content
SpringerLink
Log in

The Benefit Side of Environmental Activities and the Connection with Company Value

  • Chapter
  • First Online:
Environmental Management Accounting and Supply Chain Management

Part of the book series: Eco-Efficiency in Industry and Science ((ECOE,volume 27))

Abstract

Sustainability has become one of today’s most frequently used terms and is included in a growing number of documents. Before an environmental investment decision can be made, companies have to analyse not only the cost but related benefits. Benefits originating from environmental activities have higher importance. Environmental management accounting focuses much more on the cost side of the environmental activities than on benefits. Environmental benefits are often regarded as cost reduction only or some very limited opportunity for creating revenues. However, the profitability of environmental activities represents a very important opportunity for firms. As can be seen in this paper, the positive effect of an environ­mental activity involves more areas and is less tangible such as higher brand value, competitive advantages and lower operational costs. But how can these elements be measured and how much influence do they have on company value? This is the main question discussed.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 169.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 219.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 219.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  • Beer P and Friend F (2006) Environmental accounting: a management tool for enhancing corporate environmental and economic performance Ecological Economics 58.3 548–560

    Article  Google Scholar 

  • Bouteiller C (2000) The evaluation of intangibles: advocating for an option based approach Paper presented at the Alternative Perspectives on Finance and Accounting Conference APFAC, Hamburg (4–6 August 2000)

    Google Scholar 

  • Carr NG (2003) IT doesn’t matter Harvard Business Review 81.5 41–59

    Google Scholar 

  • Chikán A (2002) Vállalatgazdaságtan Budapest, AULA

    Google Scholar 

  • Chikán A and Demeter K (1993) Értékteremtő Folyamatok Menedzsmentje Budapest, AULA

    Google Scholar 

  • Chousa JP and Castro NR (2006) A model of financial analysis at the service of sustainability in Schaltegger S and Wagner M Managing the Business Case for Sustainability: The Integration of Social, Environmental and Economic Performance Sheffield, Greenleaf 127–145

    Google Scholar 

  • Constanza R, d’Arge R, de Groot R, Farber S, Grasso M, Hannon B, Linburg K, Naeem S, O’Neill VR, Paruelo J, Raskin RG, Sutton P and van den Belt M (1998) The value of the Word’s ecosystem services and natural capital Ecological Economic 25.1 3–15

    Article  Google Scholar 

  • Constanza R, Farber SC and Maxwell J (1989) Valuation and management of wetlands ecosystems Ecological Economics 1.4 335–361

    Article  Google Scholar 

  • Constanza R and Daily HE (1992) Natural capital and sustainable development Conservation Biology 6.1 37–46

    Article  Google Scholar 

  • Copeland T, Koller T and Murrin J (1994) Valuation Measuring and Managing the Value of Companies New York, Wiley

    Google Scholar 

  • Csutora M (2007) EMA – estimating the benefit side EMAN Conference Helsinki, EMAN

    Google Scholar 

  • Csutora M and dePalma R (2008) Using EMA to benchmark environmental costs – theory and experience from four countries through the UNIDO TEST Project in Schaltegger S, Bennett M, Burritt RL and Jasch C Environmental Management Accounting for Cleaner Production Amsterdam, Springer

    Google Scholar 

  • Csutora M and Kerekes S (2004) A Környezetbarát Vállalatirányítás Eszközei Budapest, KJK-KERSZÖV

    Google Scholar 

  • Damodaran A (2002) Investment Valuation, Tools and Techniques for Determining the Value of Any Assets New York, Wiley

    Google Scholar 

  • Ditz D, Ranganathan J and Banks RD (1995) Green Ledgers: Case Studies in Corporate Environmental Accounting Baltimore, World Resources Institute

    Google Scholar 

  • Earnhart D and Lizal L (2007) Does Better Environmental Performance Affect Revenues, Cost, or Both? Evidence from a Transition Economy William Davidson Institute Working Paper Series No. 856 Michigan, William Davidson Institute

    Google Scholar 

  • Fehér P (2008) Informatikai Beruházások Pénzügyi Értékelése Budapest, Budapest Corvinus University

    Google Scholar 

  • Figge F, Hahn T, Schaltegger S and Wagner M (2002) The sustainability balance scorecard-linking sustainability management to business strategy Business Strategy and the Environment 11.5 269–284

    Article  Google Scholar 

  • King MD and Mazzotta JM (2000) Ecosystem Valuation [online] [cited 28 December 2010] Available from Internet URL <www.ecosystemvaluation.org>

  • Lankoski L (2006) Environmental and economic performance in Schaltegger S and Wagner M Managing the Business Case for Sustainability: The Integration of Social, Environmental and Economic Performance Sheffield, Greenleaf 32–46

    Google Scholar 

  • Marjainé Sz.. Sz. (2005) A Természetvédelemben Alkalmazható Közgazdasági Értékelési Módszerek Budapest, KVM Természetvédelmi Hivatal

    Google Scholar 

  • Ministry of the Environment Japan (2005) Environmental Accounting Guidelines Japan, Ministry of the Environment Japan

    Google Scholar 

  • Mitchell RC and Carson TR (1989) Using Surveys to Value Public Goods: The Contingent Valuation Method Washington DC, Resources for the Future

    Google Scholar 

  • Munasinghe M (1993) Environmental Economics and Sustainable Development Washington DC World Bank

    Book  Google Scholar 

  • Pearce D (2002) An intellectual history of environmental economics Annual Review of Energy and the Environment 27.1 57–81

    Article  Google Scholar 

  • Porter M (1985), Competitive Advantage: Creating and Sustaining Superior Performance New York, The Free Press

    Google Scholar 

  • Randall A (1994) A difficulty with the travel cost method Land Economics 70.1 88-96

    Article  Google Scholar 

  • Rappaport A (1998) Creating Shareholder Value – A Guide for Managers and Investors New York, The Free Press

    Google Scholar 

  • Roztocki N and Weistroffer HR (2005) Evaluating information technology investments: a fuzzy activity-based costing approach Journal of Information Science and Technology 2.4 30–43

    Google Scholar 

  • Salzman O, Ionescu-Somers A and Steger U (2005) The business case for corporate sustainability: literature review and research option European Management Journal 23.1 27–36

    Article  Google Scholar 

  • Schaltegger S and Burritt R (2000) Contemporary Environmental Accounting Issues, Concepts and Practice Sheffield, Greenleaf Publishing

    Google Scholar 

  • Schaltegger S and Figge F (2000) Environmental shareholder value: economic success with Corporate Environmental Management Eco-Management and Auditing 7.1 29–42

    Article  Google Scholar 

  • Schaltegger S and Synnestvedt T (2002) The link between ‘green’ and economic success: environmental management as the crucial trigger between environmental and economic performance Journal of Environmental Management 65.4 339–346

    Google Scholar 

  • Schaltegger S and Wagner M (2006) Managing and measuring the business case for sustainability: capturing the relationship between sustainability performance, business competitiveness and economic performance in Schaltegger S and Wagner M Managingthe Business Case for Sustainability: The Integration of Social, Environmental and Economic Performance. Sheffield, Greenleaf 1–27

    Google Scholar 

  • Sustainability, IFC and Ethos Institute (2001) Developing Value the Business Case for Sustaina­bility in Emerging Markets London, Sustainability Ltd.

    Google Scholar 

  • Steger U (2006) Building a business case for corporate sustainability in Schaltegger S and Wagner M Managing the Business Case for Sustainability: The Integration of Social, Environmental and Economic Performance Sheffield, Greenleaf 412–443

    Google Scholar 

  • Turner KR (2001) The place of economic values in environmental valuation in Bateman IJ and Willis KG Valuing Environmental Preferences, Theory and Practice of the Contingent Valua­tion, Method in US, EU and Developing Countries New York, Oxford University Press 17–41

    Google Scholar 

  • UNDSD (2001) Environmental Management Accounting Procedures and Principles New York, UNDSD

    Google Scholar 

  • Wagner M and Schaltegger S (2004) The effect of corporate environmental strategy choice and environmental performance on competitiveness and economic performance: an empirical study of EU manufacturing European Management Journal 22.5 557–572

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

  1. University of Szeged, Szeged, Hungary

    Hajnalka Ván

  2. University of Technology and Economics (BME), Stoczek József u. 2., 1111, Budapest, Hungary

    Szilvia Gärtner

Authors
  1. Hajnalka Ván
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Szilvia Gärtner
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Hajnalka Ván .

Editor information

Editors and Affiliations

  1. University of South Australia, School of Commerce, North Terrace 37-44, Adelaide, 5000, South Australia, Australia

    Roger Burritt

  2. Leuphana Universität Lüneburg, Centre for Sustainability Management (CS, Scharnhorststraße 1, Lüneburg, 21335, Germany

    Stefan Schaltegger

  3. University of Gloucestershire, The Business School, The Park, Cheltenham, GL50 2RH, Gloucestershire, United Kingdom

    Martin Bennett

  4. Aalto University, School of Science and Technology, Eerikinkatu 9A9, Helsinki, 00100, Finland

    Tuula Pohjola

  5. Corvinus University of Budapest, Institute for Environmental Sciences, Fovám tér 8, Budapest, 1828, Hungary

    Maria Csutora

Rights and permissions

Reprints and permissions

Copyright information

© 2011 Springer Science+Business Media B.V.

About this chapter

Cite this chapter

Ván, H., Gärtner, S. (2011). The Benefit Side of Environmental Activities and the Connection with Company Value. In: Burritt, R., Schaltegger, S., Bennett, M., Pohjola, T., Csutora, M. (eds) Environmental Management Accounting and Supply Chain Management. Eco-Efficiency in Industry and Science, vol 27. Springer, Dordrecht. https://doi.org/10.1007/978-94-007-1390-1_12

Download citation

Publish with us

Policies and ethics

Search

Navigation