Anastasia Ratna Puspita, Tigor Tambunan, Agnes Utari Widyaningdyah, Jesica Handoko
Purpose – This paper aims to provide a practical method for businesses seeking to identify and measure the characteristics of material and energy costs in their production activities using the Environmental Management Accounting (EMA) framework. Specifically, this study applies Material and Energy Flow Accounting (MEFA) and Environmental Cost Accounting (ECA), which are closely aligned with the principles of Material Flow Cost Accounting (MFCA), standardized by ISO 14051. The object of this single case study is a non-traditional and non-profit-oriented company, the largest MDF-based coffin company in Surabaya, Indonesia. Design/methodology/approach – This research applies two environmental management system analysis instruments within the EMA framework: MEFA and ECA. These applications are grounded in the principles of the MFCA, focusing on the physical and monetary flows of materials and energy. For triangulation, a combination of techniques, including interviews, observations, measurements and computations, was used to collect relevant physical and monetary data in the context of routine and short-term activities. Findings – This study successfully presents a simple and systematic framework for applying MEFA and ECA methods, consistent with MFCA principles, in the production activities of an MDF-based coffin company in Indonesia. The tabulation technique used in this study can be an effective environmental cost information system for evaluating and planning a company’s environmental performance. EMA finds that the coffin production process is dominated by the cost of primary raw materials (49.5%), a low proportion of energy costs (0.31%) and at least a cost improvement potential due to 16.1% of cost absorption arising from solid waste. This finding highlights actionable insights for reducing waste and improving profitability. Research limitations/implications – Methodologically, the EMA tool used is for routine and short-term problems. Therefore, the results of this analysis only describe the environmental management conditions within a coffin company under routine and short-term conditions. Furthermore, the study’s findings are context-specific, in terms of industry type, geography and year. These findings are likely not generalizable. Practical implications – Coffin and funeral-related companies should detail the environmental impact of their business activities. In addition to serving as a reference for improving environmental performance throughout the coffin life cycle, the identified environmental costs reveal potential cost savings that are crucial for business sustainability in various ways, such as material supplier selection, coffin redesign and handling coffins at the end of life. This study provides a clear example of how EMA/MFCA can inform internal management decisions to improve eco-efficiency. Social implications – This study demonstrates how a business can actively reduce its environmental impact, regardless of whether it is a small or medium-sized enterprise or operates in a specialized or non-traditional industry. This study promotes the use of environmentally friendly production techniques because of the financial advantages associated with efficient environmental management. Originality/value – As the first case study on applying EMA to coffin companies in Indonesia, this study offers a practical procedure for implementing MEFA and ECA simultaneously for simple manufacturing companies. The originality of this study lies in the application of these established frameworks to a non-traditional and under-researched industry, demonstrating their utility in identifying tangible environmental and economic improvements. © 2025 Emerald Publishing Limited
Department of Accounting, Widya Mandala Surabaya Catholic University, Surabaya, Indonesia