Using an environmental costs` composite index as a tool for managerial decisions

Compliance of Romanian industrial organizations to European Union environmental regulations constitutes a premise for sound environmental performance and is accompanied by important costs. A clear identification and evaluation of both tangible and intangible environmental costs incurred within an industrial organisation / sector represents the baseline for proper managerial decisions. The proposed composite index is taking into account the main environmental costs identified within the organisation / sector and is representing an important base for decisions related to the improvement of both economic and environmental performance of organisation / sector. A methodology for both identification of tangible / intangible environmental costs and calculation of environmental costs composite index was developed based on available United Nations – Environmental Management Accounting and Material Flow Cost Accounting – ISO 14051 procedures. The methodology was applied in a first step at the level of an industrial organisation from energy production sector and then translated to the sectorial level. Its application resulted in a set of measures to be implemented at the level of industrial organisation in order to improve its performances and options for sustainable development of the energy production sector. A set of eco-efficiency indicators to be applied at the level of organisation and industrial sector was also developed in order to assess their environmental performances.