Calculate and Analyze the Complete Environmental Costs of Your Organization

2025/01/15
Jérôme Keller
Calculate and Analyze the Complete Environmental Costs of Your Organization

Integrating environmental costs into decision-making processes has become crucial for organizations seeking to adopt sustainable practices.

This approach involves adopting a cost accounting model that takes into account the consumption of modeled objects to assess the total environmental impact of their activities.

This article explores the methods and tools for identifying, calculating, and analyzing these costs to optimize sustainability strategies directly on your organizational model.

Integrate Environmental Costs into Your Cost Accounting Model

The cost accounting model is an essential tool for managing and evaluating internal costs within an organization. It is based on the allocation and assignment of indirect costs to different cost centers, departments, or products to accurately determine and optimize complete costs.

The introduction of the "CO2 equivalence" dimension into the cost accounting model allows for the dissemination of information on environmental impacts and the calculation of complete environmental costs.

To do this, the quantities consumed impacting the environment are translated into CO2 equivalent quantities (CO2e) by applying emission factors: for example, the kWh of electricity consumed are converted into kg of CO2e.

Finally, these CO2e quantities are disseminated similarly to the allocation of indirect costs: CO2 emissions are distributed among the different cost centers or products using the allocation keys already used to obtain complete costs.

If you want to know more, we recommend reading our article Determine the Environmental Costs of Your Activities and Products by Your ABC Model.

Consult Complete Environmental Costs on the Easy Orga Platform

As part of environmental impact management, the Easy Orga platform offers a series of powerful and relevant tools to model, calculate, and analyze the environmental costs of your organization. These tools are used to track and convert consumption into CO2 equivalents, providing a clear and complete view of your organization's carbon footprint.

Here is the analytical model of a Glassworks that produces 4 types of glass objects: 1L Bottle, 0.75L Bottle, 0.5L Jar, and 0.75L Converse. Directly on the model, you observe and analyze its environmental impacts:

Complete Environmental Costs

Complete Environmental Costs of the Simplified Glassworks Model

CO2e Origin for 1L Bottle

CO2 Equivalent Origin for 1L Bottle

CO2e Origin for Headquarters

CO2 Equivalent Origin for Headquarters

Environmental Impacts of Water Consumption

Water Consumption Translated into CO2 Equivalent and Distributed on the Model

CO2e Origin for Main Factory

CO2 Equivalent Origin for Main Factory

Environmental Impacts of Diesel Consumption

Diesel Consumption Translated into CO2 Equivalent and Distributed on the Model

Analyze Faster and More Accurately with the Tools of the Easy Orga Platform

Other analysis tools complement those present on the model view:

Environmental Costs Spillover Graph
Environmental Costs Graph: Types and Origins