This document discusses environmental accounting practices in India. It provides an overview of environmental accounting, including what it is, why companies do it, and types of environmental costs. It then discusses strategies like reactive, proactive and leadership approaches. Methodologies used are also mentioned. The document also provides examples of environmental accounting practices at Tata Steel and Steel Authority of India Limited. It describes their monitoring of resources, waste management, pollution control and conservation measures.
3. Discussion
Environmental Accounting Overview
What is environmental accounting
Why do environmental accounting
What is an environmental cost
System Strategies
Business Purpose and Application
Reactive, Proactive, Leadership
Example - Cost Allocation
Methodologies
4. Environmental Accounting
Overview
What is environmental accounting?
A flexible tool to provide information not necessarily
provided in traditional managerial systems.
5. Goal
Goal
of environmental
accounting is to increase the
amount of relevant data for
those who need or can use it.
“Relevant
data ” depends on
the scale and scope of
coverage
6. Scale and Scope
Applicable at different scales of use and scopes (types)
of coverage.
Application at an individual process level (production
line), a system, a product, a facility, or an entire company
level.
Coverage (focus) may include specific costs, avoidable
costs, future costs and/or social external costs
7. Scale and Scope
Decisions on scale and scope of application significantly
impact ability to assess and measure environmental
costs
Process vs Facility
Discreet costs vs Hidden vs Contingent vs Image Costs
8. Why do Environmental
Accounting ?
Environmental
cost can be significantly
reduced or eliminated as a result of
business decisions.
Environmental
costs may provide no added
value to a process, system or product (i.e.
waste raw material )
Environmental
costs may be obscured in
general overhead accounts and overlooked
during the decision making process.
9. Why do Environmental
Accounting ?
Understanding
environmental costs can lead
to more accurate costing and pricing of
products.
Competitive
advantage with customers is
possible where processes and products can
be shown as environmentally preferable.
10. Environmental Costs
Major challenge in application of environmental
accounting as a management tool is identifying relevant
costs.
Cost definition determined by intended use of data (i.e.
cost allocation, budgeting, product/process design or
other management decision support).
11. Environmental Costs
Types of Environmental Costs
Conventional: material, supplies, structure and
capital costs need to be examined for
environmental impact on decisions.
Potentially Hidden:
Regulatory (fees, licenses, reporting, training,
remediation)
Upfront and back end (site prep, engineering,
installation, closure and disposal)
Voluntary (training, audits, monitoring and reporting)
Contingent: penalties/fines, property liability,
legal)
Image: Relationship with employees, customers,
suppliers, regulators and shareholders
12. TATA Steel
Tata Steel monitors its overall
raw material consumption per
tone of Iron and Steel
produced with the objective of
conserving resources and
reducing its ecological
footprint.
13. Water Consumption
Water for industrial and domestic
usage at Jamshedpur is mainly
drawn from surface water
resources.
In 2010-11 as much as 35% of the
water was recycled as opposed to
21% in 2009-10. No source of
water is negatively affected by
withdrawal.
14. Energy Consumption
Tata Steel has seen a steady
decline in its specific energy
consumption. In 2010-11 the
specific energy consumption
at the Steel Works declined
to 6.006 Gcal/tcs against
6.125 Gcal/tcs in 2009-10.
16. Energy Conservation measures
taken
Waste heat recovery from Pressure Reducing & DeSuperheating (PRDS) at Power House#5 resulted in
additional 3 MW power generations.
Use of regenerative burners for lean gas (i.e., Blast
Furnace Gas) at 3rd reheating Furnace of Hot Strip Mill.
Modification in LD gas export system, which has
resulted in higher LD Gas recovery.
Execution of interconnection of Praxair 1 & 2 Plants to
reduce Oxygen delay at Steel Making stage.
Efficient use of by-product gases for Power Generation.
Higher availability of Top recovery turbine for Power
Generation.
17. Impact of these measures
Energy Conservation measures during 2010-2011 has resulted
in achieving:
Lowest ever Plant Specific Energy Consumption - 6.006
Gcal/tcs.
Lowest ever middling consumption - 14.16 kg/tcs.
Highest ever LD Gas Recovery - 50,697 Nm3/hr
Lowest ever Plant Power Rate - 356 kWh/tss
Highest ever combine boiler efficiency - 85.13%
Lowest ever Fuel rate at Hot Strip Mill - 0.292 Gcal/t.
Higher Power generation through Top Recovery Turbine 16.01 MW.
19. Solid Waste Management
Various initiatives are underway to
address Tata Steel’s current
challenges improving the utilization
of solid waste. Utilization of LD slag
has been a major challenge and many
initiatives such as use in cement
manufacturing, construction metal,
pavement block making, soil
conditioner etc have been taken up by
Tata Steel.
21. Control of Water Pollution
Water pollution is a major environmental
concern today that adversely affects
the surroundings, causing serious
injury to the environment as well as
human health.
22. Power
Plant: DM plant wastewater is
treated in the neutralization pit. After
treatment, the water is reused for wet ash
handling system.
Submerged
Arc Furnace: Waste water is
reused for slag cooling and dust
suppression.
Sewage
Treatment Plants (STP): Three
sewage treatment plants (combined
capacity 3050 KL/ day) have been
installed. The treated water is 100%
reused for horticulture and green cover.
23. Control of Air Pollution
In
DRI Kilns, the dust Settling
Chambers and ESPs (Electrostatic
Precipitators) have been installed
to control process emissions.
Fugitive dust is controlled through
multiple point suction hoods
attached to bag filters. Dry fog
dust suppression system is
provided at required places.
24. In
Sinter Plant, a centralized de-dusting
system with an Electrostatic Precipitator is
installed for dust control in the raw material
handling area. Additionally high capacity ESP
also exists to control process emissions.
In
Blast Furnaces, the gases are cleaned
through cyclone and two-stage venturi
scrubber (Gas Cleaning Plant). Pulse jet and
invertible bag filters have been installed to
control emission from the stock house and
cast house.
25. Solid Waste Management
Power
is generated from coal rejects, fines
and middlings in AFBC boilers.
Slag
generated from blast furnace is 100%
reused in cement manufacturing and brick
making.
Tailor
made Sinter plant to utilize 100% mill
scale and flue dust generated in mills and
blast furnace.
SMS
slag is used for road making.