Environmental-oriented Cost Management

A clear economic benefit encourages companies to reduce their negative environmental impact.

EoCM® is one of the more complex tools of Profitable Environmental Management® and it typically follows the Good Housekeeping® training. The module is an instrument to identify and reduce both obvious and hidden production costs, which are mostly caused by the inefficient use of environmentally relevant inputs such as water, energy and raw materials.

Based on the results of the GHK® training, the EoCM® tool provides a clear structure for monitoring material flows and their related costs in a production process. Contrary to other accounting systems, it highlights the costs caused by NPO flows thus showing the saving potential of a company. The straightforward cost-benefit analysis provides managers with a decision-making tool for identified improvement measures. EoCM® is a suitable management tool for both accounting staff and production managers and it encourages a closer cooperation between these two departments.

The module also increases the overall organisational efficiency and transparency as well as the motivation and self-responsibility of the staff members. EoCM® training is implemented in two subsequent three-day courses; a time gap between the two courses allows the enterprise a systematic and continuous monitoring of material flows. This enables them to implement environmental-oriented cost management. EoCM® implements a step-by-step approach with its clients to achieve the process of organisational change and to foster continuous improvement.

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