A Case Analysis Of Environmental Cost Management Of China Petroleum&Chemical Corporation

With the constant improvement of the human ability in transformation nature,under the background in which human have been continuously in the interaction of environment since their birth,the environmental problems are becoming more and more serious.At the same time,the content of cost management accounting also witnessed a growing.Environmental cost refers to all costs incurred by the influenced environment,and the environment cost of environmental management accounting should include pollution prevention and environmental management costs,processing cost of wastes and emissions,purchase cost of waste materials,nonproductive manufacturing costs and so on.In foreign countries,the research on related accounting problems of environment pollution had started since 1971,and many western developed countries also began to study the environmental costs.As the environmental cost management theory and application research has become increasingly active,developed countries have made great progress in research of related theories and practices.At home,scholars started the introduction of environmental cost in the early1990 s,though the related research in the field lagged behind abroad for nearly 20 years.In terms of theory,environmental cost accounting research in our country is broad,which is made up of not only discussion about the definition,recognition,measurement and disclosure of information of environmental costs and a variety of other basic theories,but also many application research on specific issues such as enterprise environment cost management,environmental investment decision-making,performance evaluation and so on.Chinese environmental cost accounting research in our country actively absorbs foreign advanced theories in the study achievement and puts forward plenty of practical theories on the basis of foreign researches as well as combining the situation of our country.However,the environmental cost accounting is a complex subject containing numerous contents,and our country is still in lack of uniform standards and general operational standards in the process of the research,so further development in our environmental cost accounting theory still needs to be done.In terms of practice,our country's current research lacks in practical guidance,so it is difficult to form a set of relatively complete theory and further promote.In the long run,environmental cost accounting research is bound to have a great impact onthe future of our country,and a more complete series of theories will better accelerate the positive development of our natural environment in the future.This article first elaborated background and significance of the research,and reviews relevant researches in the environmental cost by domestic and international scholars and in cost management by domestic scholars,then introduces related concepts and theories of environmental cost management.Combined with the environment cost management case of China petroleum & chemical co.,LTD.(hereinafter referred to as Sinopec),we unfold correlation discussion about the company's environmental prevention cost management,environmental maintaining cost management and environmental cost management.In terms of environmental prevention cost management of a company,this paper sets research analysis about the company's HSE management system,the green technology research and sector setup and holds the opinion that the company's sound environmental cost management system reduces the environmental cost of prevention.So if a company establishes health,safety and environment(HSE)management system and green developmental environmental management systems and mechanisms while constantly improving itself,it can implement the environmental management regulation,standardization and emphasize environmental protection system of "one ticket veto",so as to reduce the environmental cost of prevention on the whole and make environmental protection work better.In terms of environment maintaining cost management in the company,the paper deeply taps into the carbon asset management methods of a company,means to establish environmental information platform and effective measures of "full control" and thinks that,through continuous optimizing and constructing more perfect environmental protection platform,a company can successfully realize the win-win result between economic benefit and social benefit.This article analyzes from the company's "three wastes" treatment measures,ecological restoration measures along the pipeline and disclosure system of cost information,and concludes that when a company applies the measures of "three wastes" treatment and emission reduction,its recycling income can make up for the environmental damage cost.Sinopec acts as a success in environmental cost management,which combines with its own characteristics,effectively manages and reasonably optimizes its environmental costs.Finally,from the Sinopec environmental cost management case,the paper draws some experiences on company's environmental cost management.First,Sinopecshould consider the whole production process,distribute all possible future environmental expenditures and combine them into the product cost budget to put forward every feasible production scheme.The "overall prevention" of advanced planning is the most effective way for an enterprise to control environment cost.Next,the clean production of "full control" is a strong support to achieve environmental cost efficient management,and green process design is the source of cleaner production,not only making the discharge of harmful substances in the process of array to a minimum,but objectively reducing the waste of natural resources to the lowest,for the design of recycling a part of wastewater and solid waste.Finally,the "efficient governance" ecological restoration is reliable for an enterprise to improve environmental performance.In addition,while considering the overall layout of Sinopec environment cost management,there also needs to be aware of,first,paying attention to the integrity and comparability of the information disclosure of environmental cost.Second,attaching great importance to the effectiveness of the environmental cost control of the subsidiaries,in the hope that the experience and enlightenment can help enterprises in the aspect of environmental cost management.