Adopting sustainability accounting according to the ISO14001 environmental accounting system

Abstract

       This research addresses the Adopting of sustainability accounting in accordance with the requirements of the Environmental Management System standard ISO 14001, through a practical application in Al-Fath Factory for Woven Blanket Production. The importance of the study stems from the need to integrate environmental sustainability requirements within the cost accounting system, in order to address material and energy waste, enhance production efficiency, and ensure compliance with international environmental standards.

The research aims to Adopting sustainability accounting in light of ISO 14001 requirements through an applied study at the General Company for Textile and Leather Industries – Al-Fath Factory. It focuses on identifying sources of waste in materials, energy, and time; analyzing cost deviations between actual and proposed figures; and assessing the extent to which the factory’s activities align with ISO 14001 international requirements.

The study relied on real data obtained from the factory for the year 2024, including raw material records, inventory, waste reports, and comparisons between actual and estimated costs, all linked to sustainability accounting foundations. It also proposed an alternative technological pathway to reduce waste and enhance sustainability, in addition to developing a proposed accounting model that reflects the unit cost in accordance with environmental standards.

The results revealed high levels of waste in time and production due to limited working days, as well as underutilization of waste materials, leading to unjustified cost deviations. The researcher adopted a sustainability accounting model and applied ISO 14001, which effectively contributed to reducing costs.

The study recommends the adoption of an integrated environmental management system, the improvement of recording, monitoring, and packaging practices, and the reuse or investment of industrial waste in by-products, contributing to cost reduction and environmental compliance.