MATERIAL FLOW COST ACCOUNTING AND SUSTAINABILITY: AN INTEGRATED APPROACH TO CORPORATE ENVIRONMENTAL MANAGEMENT

Abstract

In an era marked by increasing environmental awareness and regulatory pressures, companies are compelled to integrate sustainability into their core operations. This study explores the application of Material Flow Cost Accounting (MFCA), a powerful environmental accounting tool, to enhance sustainability within organizations. MFCA provides a comprehensive understanding of material and energy flows, enabling the identification of inefficiencies, waste reduction, and cost savings. This interdisciplinary research synthesizes insights from accounting, environmental science, and sustainability literature to demonstrate the potential of MFCA in promoting eco-efficiency and responsible resource management. Through a literature review, this study examines the practical implementation of MFCA, its benefits and challenges, and its role in fostering a more sustainable business paradigm. The findings highlight the importance of MFCA as a valuable tool for accountants and managers seeking to integrate environmental considerations into decision-making processes and contribute to a more sustainable future.