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Re: EH&S in Capital Projects
Some of the costs to consider in environmental accounting include: direct,
hidden, contingent liability, and intangible. The direct, hidden and
liability costs of using hazardous or toxic materials include:
§ The initial purchasing price,
§ Shipping expenses for toxic or hazardous materials,
§ Certified warehousing and storage,
§ Training and personal protective equipment,
§ Spill prevention and response kits,
§ Occupational safety compliance requirements,
§ Facility upgrades such as proper ventilation,
§ Spill response teams including training and equipment,
§ Environmental permits, and
§ Environmental compliance experts on staff,
while the costs of disposal of waste or unused material include:
§ Hazardous waste disposal fees,
§ Shipping fees,
§ Environmental compliance experts,
§ Storage manifests,
§ Regulatory reporting, and
§ Life-long liability.
In addition to the above, there are the intangible costs such as costs
associated with corporate image, customer acceptance and goodwill.
According some studies, some companies may be spending as much as 22 percent
of their operating expenditures on environment-related activities.
Sarah M. Diefendorf
Environmental Finance Center, Region IX
851 West Midway Ave.
Alameda, CA 94501-5012