Environmental cost analysis and reporting to measure environmental performance in realizing eco-efficiency at PT Industri Kereta Api (Persero)

Abstract

Purpose -The purpose of this paper is to simulate the environmental cost reports preparation used to measure environmental performance in realizing eco-efficiency. Design/methodology/approach -This research uses a descriptive case study by using environmental cost detail data from 2011, 2012, 2013 and 2014. The research object is PT Industri Kereta Api (Persero) located in Madiun, East Java. Findings -The result of the research shows that PT INKA (Persero) has not specifically made environmental cost report. It is found that the percentage of total environmental cost to operational cost tends to increase; the cost which gives the biggest distribution of total environmental cost is the prevention cost. By 2014, the effect of environmental costs on operating costs tended to decrease and during 2012-2014 PT INKA successfully maintained the blue star PROPER and the absence of environmental pollution reports. Originality/value -PT INKA's environmental performance is still well controlled and since its inception in 2014 PT INKA has succeeded in realizing the concept of eco-efficiency.

Does Environmental Information Disclosure Mediate the Effect of Environmental Cost on Environmental Performance?

“…Environmental costs have an influence on improving company performance. It has an impact on customer satisfaction, investors and success in meeting applicable regulations, especially in the environmental sector [17]. The company's environmental costs must be controlled in order to obtain efficient environmental costs, so that the company is still able to generate profits [18].…”

“…It has an impact on customer satisfaction, investors and success in meeting applicable regulations, especially in the environmental sector [17]. The company's environmental costs must be controlled in order to obtain efficient environmental costs, so that the company is still able to generate profits [18]. According to [17] in order for environmental costs to be efficient, companies must focus on prevention costs which DOI 10.18502/kss.v7i14.12024 ICESRE 2021 aim to prevent environmental damage.…”

“…The company's environmental costs must be controlled in order to obtain efficient environmental costs, so that the company is still able to generate profits [18]. According to [17] in order for environmental costs to be efficient, companies must focus on prevention costs which DOI 10.18502/kss.v7i14.12024 ICESRE 2021 aim to prevent environmental damage. Environmental costs are sacrifices made by a company to prevent and overcome environmental damage for its operational activities.…”

“…Based on these descriptive statistics, the majority of manufacturing companies in Indonesia received a Blue PROPER rating, which means that Indonesian manufacturing companies have met the standards of the Ministry of Environment and Forestry. environmental performance tends to be consistent every year [17]. In addition, the environmental performance shown by the PROPER rating is directly assessed by the Ministry of Environment and Forestry regardless of the amount of costs incurred by the company.…”

Hazardous and toxic waste standard design for temporary storage for oil and gas

“…If the pollutants enter the body through breath, skin or mouth, it will cause death or serious disease. The condition of B3 waste due to lubricating oil has not received proper handling [9]. Based on these problems, a method of identifying hazards has emerged, and a temporary storage area for lubricants has been designed to meet the requirements of applicable standards, thereby reducing or minimizing potential hazards is might occur [10].…”