The easy way to assess external costs.
We offer accounting for the external or true costs of your products and processes. This makes it even easier for you to communicate your ecological potential.
True Cost Accounting
A method of monetizing environmental and social impacts.
True Cost Accounting (TCA) is an emerging method for the monetary valuation of environmental impacts and is conducted based on the results of LCA. It expresses the costs of the damage caused by resulting impacts of the products or processes, or how much it would cost to compensate for or even avoid these impacts.
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True Cost Accounting opens up understandable communication channels regarding the sustainability impacts incurred or saved - in the universal language of money.
Benefits of True Cost Accounting:
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Clarity: TCA translates complex results of LCA into a single, easily understandable unit - monetary value. This simplifies the understanding of sustainability impacts by expressing them as cost points.
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Communication: With the monetary evaluation of external impacts, your company's sustainability efforts can be communicated in an understandable manner. This can be utilized for internal and external communication:
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Internal communication: The introduction of sustainability measures can be justified from the perspective of environmental costs; internal company potentials for improving sustainability can be highlighted; sustainability efforts can be discussed across departments (in the language of controlling); achieved sustainability improvements can be made understandable in terms of environmental cost savings; etc.
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External communication: TCA enables sustainability price comparisons of products for customers, for example, through labeling; competitive advantage through transparent and understandable description of corporate environmental impacts; etc.
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Decision-making: By bringing all environmental impacts of your products or processes to a common denominator, clear decisions regarding products, processes, or their sustainability improvements can be made, taking into account sustainability impacts.
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The use of True Cost Accounting allows you to uncover and understand sustainability potentials, justify decisions on sustainability measures, communicate your sustainability efforts, and thus meet the growing demand and obligation for transparent and environmentally friendly business practices.