Carbon cost accounting in the cement industry

 Corresponding author: Syed Raziuddin Ahmad Email: Copyright © 2025 Author(s) retain the copyright of this article. This article is published under the terms of the Creative Commons Attribution Liscense 4.0. Carbon cost accounting in the cement industry Syed Raziuddin Ahmad * Faculty of Business Studies, Arab Open University, Saudi Arabia. World Journal of Advanced Research and Reviews, 2025, 26(03), 1467-1485 Publication history: Received on 04 May 2025; revised on 11 June 2025; accepted on 13 June 2025 Article DOI: https://doi.org/10.30574/wjarr.2025.26.3.2331 Abstract The existence of human beings is dependent on the environment in which they live, and one of the environmental threats today is air pollution due to the increase in greenhouse gases. Enterprises are considered the main actor of pollution due to the greenhouse gases they release into the atmosphere during their production. The aim of the study is to provide an application proposal for businesses to determine their carbon footprints and to take into account not only product and service costs but also environmental costs in their accounting processes. In particular, the study provides data to make carbon costs related to greenhouse gas emissions more visible and reported in the total production cost and also to reduce these costs. The research was conducted in the cement sector, where greenhouse gas emissions occur the most, and the results were presented. Keywords: Greenhouse gases; Environmental accounting; Carbon footprint; Atmosphere; Pollution 1. Introduction Human beings have used the environment for their own needs since the day they came into existence. However, this use has brought environmental problems due to rapid population growth and expanding industrial production in the last century. One of these environmental problems is the negative change in the atmosphere. Due to the fact that the energy used during the production of industrial products is largely met from fossil fuels, greenhouse gases released in excessive amounts are one of the leading factors that cause nature to fail to renew itself and the natural gas balance in the atmosphere to deteriorate. Environmental problems such as global warming, ozone depletion, drought, and climate change are largely the response of nature to human intervention in the natural ecological balance. The inadequacy of national measures taken against the pollution of the atmosphere, which is the common value of all societies of the world, and the perceptible environmental problems arising from this pollution, have led to the necessity of taking several international measures. The United Nations Framework Convention on Climate Change, which was adopted in 1992 and given legal force by the Kyoto Protocol, which came into effect in 2005, marked a significant advancement in the conferences held under UN leadership to better understand and discuss the effects of greenhouse gases and the process of global warming. The Protocol establishes national targets and commitments for reducing greenhouse gas emissions. Businesses, which are thought to be the primary source of greenhouse gas emissions, have been driven to take action in this regard by these international resolutions and national practices aimed at meeting their reduction objectives. Businesses now have to keep an eye on the carbon emissions they produce during manufacturing and compute and document their carbon footprints. Additionally, the idea of carbon accounting was born out of nations' attempts to align their legal frameworks and financial systems with these practices. World Journal of Advanced Research and Reviews, 2025, 26(03), 1467-1485 1468 The study provides a concept for an application that would make greenhouse gas emissions and the actions made to minimize them more apparent and reportable on business cost accounting systems. In the study, using the case study method, the environmental costs of Pacelile Cement company operating in the cement production sector in March 2022 were recorded according to a sample chart of accounts prepared, making the environmental expenses obvious, and thus the costs caused by emissions were made visible and reported. In this context, a case study was conducted on the accounting system of the cement company and the cost and accounting system was reconstructed to identify emission costs. How to make the obtained data usable in management decisions has been revealed. In the study, the necessary literature review was conducted during the data collection phase. 2. Literature Review Some of the academic studies in the literature on carbon cost accounting are Kumarasiri and Jubb (2016), in their study "Carbon emission risks and management accounting: Australian evidence", explain the impact of cost accounting and cost management accounting on business activities in the developing carbon market. Cadez and Guilding (2017), in their study "Examining distinct carbon cost structures and climate change abatement strategies in CO2 polluting firms", aim to establish a basic understanding of carbon accounting practices, open up the carbon financial accounting debate to a wider international audience and build consensus. Broadstock et al. (2018), in their study titled "Voluntary disclosure, greenhouse gas emissions and business performance: Assessing the first decade of reporting", emphasized the importance and benefits of carbon management accounting practices based on the study results of companies practicing carbon management accounting. Ahmad et al. (2023), in their study titled "An Analysis of the relationships between Cost and sustainability indicators", introduces the carbon market transactions and gives information about the effects on the accounting system, and explains them with examples. Martineau and Lafontaine (2020), in their study "When carbon accounting systems make us forget nature: from commodification to reification", an application about carbon emission accounting is given and a suggestion is made on its applicability. Downar et al. (2021), "The impact of carbon disclosure mandates on emissions and financial operating performance", first tries to analyze the different carbon accounting arrangements that exist at the international level from a macroeconomic perspective. It then describes the basic practical carbon accounting principles and applications in different industries. Khatoon et al. (2023), in their study titled "Performance Management Accounting and Profitability: Evidence from Small and Medium Enterprises", focused on the recording of carbon trade transactions of enterprises within the framework of carbon accounting according to International Accounting Standards. Hazaea et al. (2023), in their research titled "Past, present, and future of carbon accounting: Insights from scholarly research", discussed the dimensions of carbon trade in the world and explained the different applications in carbon accounting with examples. 3. Conceptual Framework Today, when the effects of significant changes in air pollution levels are felt more, it is necessary to determine the factors causing this pollution, monitor the amount of pollution, and take necessary steps to reduce it. For this reason, it is necessary to determine the footprints of all emissions that cause greenhouse gases in enterprises, which are the main actors of pollution, and to make adaptations to environmental accounting to reveal this situation in production cost accounting and reports. 3.1. Carbon Footprint Carbon footprint is a measure of the total amount of Carbon Dioxide (CO2) and other greenhouse gas emissions caused directly or indirectly by an activity or accumulated over the lifetime of a product, an individual, an organization, or even a city or state (Erfan et al. 2022). Table 1 Classification of Carbon Footprint Carbon Footprint Personal Carbon Footprint Corporate Carbon Footprint Primary Carbon Footprint Secondary Carbon Footprint Direct Carbon Footprint Indirect Carbon Footprint Other Indirect Carbon Footprints Source: Mishra et al. 2022 World Journal of Advanced Research and Reviews, 2025, 26(03), 1467-1485 1469 3.1.1. Individual Carbon Footprint • Primary Carbon Footprint: A measure of CO2 emissions over which individuals have direct control (e.g. electricity consumption, vehicle fuel consumption, etc.). • Secondary Carbon Footprint: It is a measure of indirect CO2 emissions resulting from the goods and services consumed by individuals. This footprint occurs during the production process of goods and services. 3.1.2. Corporate Carbon Footprint • Direct Carbon Footprint: It is the measure of emissions from fossil fuels used by organizations to carry out their production activities. For example, coal, natural gas, etc. • Indirect Carbon Footprint: This is a measure of the emissions caused by the electrical energy consumed by the organization and the emissions caused by the steam, cooling or hot water purchased by the organization from another organization. • Other Indirect Carbon Footprint: It is the measure of all emissions related to the products used by the organizations (for example, from raw materials to brochures for advertising purposes), subcontracted activities, fuels used by the rental vehicles of the organization, and land, sea and air transportation of the employees of the organization for business purposes. 3.2. Carbon Costs Businesses are in constant interaction with the environment during their activities. This is because both the source of the raw material, which is the input of production and the basic input of the energy used in the production process are provided by the environment, that is, natural resources. The enterprise uses these natural resources as raw materials and presents them back to the environment by making some changes. The environment can be negatively affected both during the use of these resources, during production activities, and during the consumption of the products produced. Some of these natural resources used by enterprises (fossil resources) emit greenhouse gases during the production process and cause air pollution. Businesses that are responsible for this need to measure their emissions or calculate their pollution. Due to the harm that corporate emissions do to the environment, numerous nations use policies like fines, levies, incentives, and market mechanisms to minimize emissions. These circumstances highlight the environmental costs associated with emissions for enterprises, which must be documented and reported. The term "carbon costs" refers to the emission of carbon dioxide and its effects, even though it is not the only greenhouse gas that corporations emit. Although it is possible to classify environmental costs in different ways, these costs can be classified as follows (Ahmed et al. 2023). • Prevention (Mitigation) Costs: Costs incurred by enterprises to reduce or prevent environmental pollution. Since emissions cause environmental pollution, they will be evaluated within this scope. For example, expenses such as filters, emission measurement devices, personnel, technical support, and training to reduce carbon emissions. • Utilization Costs: These are the costs incurred by enterprises due to the use of natural resources while producing a product or service. For example, the carbon tax imposed on the carbon-containing fossil fuels used. • Damage Costs: These types of costs are the costs that arise after the environmental pollution caused (penalty or compensation, etc.) and turn into direct expenses or losses. They are especially caused by the failure or neglect of environmental obligations within the legal period. For example, the amount of the fine imposed on the enterprise that does not use a filter even though it is required to use a chimney filter as per the legal obligation. 4. Carbon Cost Accounting In their accounting processes, businesses should consider and record not only the costs that bring products or services to the point of sale but also the environmental costs that occur before or after the production of the product or the provision of the service (Kumarasiri and Jubb, 2016). Because increasing social environmental awareness is reflected in consumer expenditures, products and services that are less harmful to the environment may be preferred by consumers. At this point, businesses are trying to produce goods or services that are less harmful to the environment to compete with their competitors. In this process, they use cost accounting systems to monitor and control their environmental costs. World Journal of Advanced Research and Reviews, 2025, 26(03), 1467-1485 1470 Most of the time, environmental expenses in India are not recorded in a separate account. In the process of cost accounting, the carbon costs that businesses bear as a result of the emissions they release into the atmosphere are primarily lost and accounted for as general production expenses. It is challenging to monitor the location and quantity of carbon expenses, as well as to record, audit, and regulate them because they are not displayed in distinct accounts. Because of this, it is important to open the proper expense locations and categories in separate accounts to reflect emission-related charges. This makes it possible to calculate the proportion of these emission-related charges to total costs as well as the source and amount of these costs. Additionally, it will support management planning aimed at containing and lowering carbon expenses. Since the share of environmental costs in total costs is increasing today, these costs should be shown in separate accounts as a requirement of the concept of materiality, one of the basic concepts of accounting. Enterprises can monitor their environmental expenditures or carbon costs related to emissions related to production in sub-accounts to be opened under 730 GENERAL PRODUCTION EXPENSES account if option 7/A is used, or in subaccounts to be opened in accordance with the main accounts in account group 79 if option 7/B is used. We can track environmental costs in the accounting system by coding them as follows. Table 2 Coding of Environmental Costs-1 000 00 00 00 0 000 Main Accounts 710 Direct Raw Material Expenses 720 Direct Labor Expenses 730 General Production Expenses 740 Service Production Expenses 750 Research Expenses 760 Marketing Expenses 770 General Expenses 780 Finance Expenses Expense Locations 10 - 19 Main Production Expense Locations 20 - 29 Auxiliary Production Costs 30 - 39 Auxiliary Service Expense Locations 40 - 49 Investment Expense Locations 50 - 59 Production Facilities Management Expense Location. 60 - 69 Research and Development Expense Location 70 - 79 Marketing, Sales and Distribution 80 - 89 General Administration Expense Locations 00 - 99 Cost Types Environmental Cost Categories 10 - 19 Mitigation Costs 20 - 29 Utilization Costs 30 - 39 Loss Costs Expense Types Types of Auxiliary Expenses Source: Can, 1998:137; Fidan, 2009:119. Emission-related environmental expenses can be recorded and monitored in auxiliary accounts to be opened under the relevant expense locations after their qualifications and expense locations are determined. These realized expenses can be categorized as shown in the table above and recorded according to the types of expenses under the relevant category. If we detail the categories of environmental costs, we can create a sample chart of accounts as follows. Table 3 Environmental Cost Categories MITIGATION COSTS 10-Emission Reduction. 20-Less Solid Liquid Waste. 30-Noise Reduction. 40-……….. UTILIZATION COSTS 11-Using Emissions.* 21-Solid Liquid Waste Utilization. .** 31-Use of Noise.*** LOSS COSTS 12-Emission Loss. 22-Solid Liquid Waste Damage. 32Noise Damage. *Cost of using natural resources that cause emissions; **Cost of using natural resources resulting in solid-liquid waste; *** Cost of causing noise World Journal of Advanced Research and Reviews, 2025, 26(03), 1467-1485 1471 Table 4 Sample Cost Chart of Accounts 730 GENERAL PRODUCTION EXPENSES • 10 X Main Production Expense o Non-Environmental Costs o Environmental Costs 10% Emission Reduction Cost • Raw Material Expenses o Chimney Filter System Material Expenditures. o Emission Measurement Device Supplies Expenses. • Worker Wages and Expenses • Civil Servant Salaries and Expenses • Benefits and Services Provided Externally o Biologist, Chemist Services o Chimney Filter System Maintenance Expenditure. o Emission Measurement Device Maintenance Expenses. o Personnel Training Expenses o Garden and Environmental Maintenance Expenses. o Environmental Management Service Procurement Expenses • Miscellaneous Expenses o Environmental Certificate Expenses. • Taxes, Duties and Charges • Depreciation and Amortization o Chimney Filter System Depreciation o Emission Measurement Device Depreciation • Solid Liquid Waste Reduction Cost • Noise Abatement Cost 20% Emission Utilization Cost • Raw Material Expenses • Worker Wages and Expenses • Civil Servant Salaries and Expenses • Benefits and Services Provided Externally o Flue Gas and Pollutant Concentration Analysis Expenses • Miscellaneous Expenses • Taxes, Duties, and Fees o Carbon Tax o Fees • Depreciation and Amortization World Journal of Advanced Research and Reviews, 2025, 26(03), 1467-1485 1472 21 Cost of Solid Liquid Waste Handling • Benefits and Services Provided Externally o Wastewater Collection and Treatment Expenditures o Solid Waste Collection Transportation and Disposal Expenses • Miscellaneous Expenses o 001 Environmental Certificate Expenses 30 Emission Damage Costs • Raw Material Expenses • Worker Wages and Expenses • Civil Servant Salaries and Expenses • Benefits and Services Provided Externally • Miscellaneous Expenses o Penalties o Indemnities • Taxes, Duties, and Fees • Depreciation and Amortization In the account plan organized as an example above, emission-related expenses are examined in 3 different categories in auxiliary accounts, and emission expenses that may differ according to the types of enterprises can be detailed in subaccounts to be opened under these categories. Table 5 Sample Balance Sheet Chart of Accounts 15 INVENTORIES 150 first articles and materials 150.10 First Materials and Supplies for Non-Environmental Activities 150.20 First Materials and Supplies for Environmental Activities 150.20.01 Emission Measurement Materials 150.20.02 Chimney Filter System Material Expenses 25 TANGIBLE FIXED ASSETS 250 LAND AND PLOTS 250.20 Lands 250.20.01 Carbon Capture Plant Land 251 UNDERGROUND AND ABOVE-GROUND INSTALLATIONS 252 BUILDINGS 253 PLANT MACHINERY and EQUIPMENT 253.10 Facilities 253.10.01 Carbon Capture Plant 253.20 Machines World Journal of Advanced Research and Reviews, 2025, 26(03), 1467-1485 1473 253.30.Devices 253.30.01 Chimney Filter System 253.30.02 Emission Measurement Devices 254 VEHICLES 255 FIXTURES 256 OTHER TANGIBLE FIXED ASSETS 257 ACCUMULATED DEPRECIATION(-) 257.20 Depreciation of Machinery and Equipment 257.20.01 Chimney Filter System Depreciation 257.20.02 Depreciation of Emission Measurement Devices 258 CONSTRUCTION IN PROGRESS 258.10 Carbon Capture Plant 26 INTANGIBLE ASSETS 260 RIGHTS 260.10 Emission Right 261 GOODWILL 262 ESTABLISHMENT AND ORGANIZATION EXPENSES 263 RESEARCH EXPENSES 264 SPECIAL COSTS 267 OTHER INTANGIBLE ASSETS 268 ACCUMULATED DEPRECIATION(-) 268.10 Amortization of Rights 268.10.01 Amortization of Emission Rights In accounting for carbon costs, different from the coding method in Table 3, the following path can be followed Table 6 Coding of Environmental Costs-2 000 00 00 000 Main Accounts 710 Direct Raw Material Expenses 720 Direct Labor Expenses 730 General Production Expenses 740 Service Production Expenses 750 Research Expenses 760 Marketing Expenses 770 General Expenses 780 Finance Expenses Expense Locations 90 - 99 Other / Peripheral Expenses Environmental Cost Categories 10 - 19 Mitigation Costs 20 - 29 Utilization Costs 30 - 39 Loss Costs Expense Types In the above illustration, the costs incurred due to emissions are to be monitored only in the sub-accounts. In today's world where social awareness of environmental issues is increasing, the pressure on businesses to reduce environmental pollution is also increasing. Legal or voluntary practices in the face of this situation cause an increase in World Journal of Advanced Research and Reviews, 2025, 26(03), 1467-1485 1474 environmental costs in enterprises. For this reason, it is necessary to make changes in the traditional chart of accounts that take into account environmental costs and make these costs more visible. Table 7 Coding Environmental Costs-3 000 00 00 000 Main Accounts 715 Direct Raw Material Expenditures with Environmental Characteristics 735 Environmental General Production Expenses 755 Environmental Research Expenses 765 Environmental Marketing Expenses 775 Environment-Specific General Administrative Expenses 785 Environment-Specific Finance Expenses Expense Locations 10 - 19 Main Production Expense Locations 20 - 29 Auxiliary Production Costs 30 - 39 Auxiliary Service Expense Locations 40 - 49 Investment Expense Locations 50 - 59 Production Facilities Management Expense Location. 60 - 69 Research and Development Expense Location 70 - 79 Marketing, Sales and Distribution 80 - 89 General Administration Expense Locations Environmental Cost Categories 10 - 19 Mitigation Costs 20 - 29 Utilization Costs 30 - 39 Loss Costs Expense Types In today's developing conditions, it would be more appropriate to show environmental expenditures separately as a main account instead of showing them as an expense location under the main accounts (710.90 Environmental Expense Location), which has been the classical classification until today. As a result of this arrangement, environmental costs related to production should be shown in the "715 Environmental Direct Raw Material and Material Expenses" account, "735 Environmental General Production Expenses" account and period expenses should be shown in the "755 Environmental R&D Expenses" account, "765 Environmental Marketing Expenses" account, "775 Environmental General Administrative Expenses" account, "785 Environmental Financing Expenses" account. In this way, environmental costs can be directly monitored and directly reflected in the financial statements. In addition, as it is known, the opening of sub-accounts in enterprises can be freely determined by the employees of the enterprise. For example, one enterprise may specify the environmental sub-account with the sub-code 715.100, while another enterprise may specify it as 715.10 and another as 715.01. In this sense, using the appropriate blank accounts will be more useful in terms of ensuring the uniformity of national data. 5. Research Methodology In 2022, total greenhouse gas emissions were estimated at 496.19 million tons of CO2 equivalent according to the International Energy Agency (IEA), 2022. In this amount, energy-based emissions constitute the largest share with approximately 73%, while industrial processes take the second place with 13%. Waste and agricultural activities have a share of 3% and 11%, respectively (International Energy Agency, 2022). In addition, according to India's 2022 greenhouse gas emission inventory, 54.4% of 2022 CO2 emissions in industrial processes originated from the cement sector (IEA, 2022). Table 8 Total Greenhouse Gas Emissions by Sector Year Energy Industrial Agriculture Waste Total (million tons CO2 equivalent) 2017 212.3 26.6 40.0 14.5 293.5 2018 240.3 34.6 40.8 16.9 332.7 2019 292.3 49.2 42.8 18.2 402.6 2020 320.1 56.8 50.6 18.1 445.6 2021 308.8 59.8 53.6 16.8 439.0 2022 361.0 62.4 56.5 16.2 496.1 Source: IEA, 2022 World Journal of Advanced Research and Reviews, 2025, 26(03), 1467-1485 1475 Table 9 Contribution of the Cement Sector to CO2 Emissions Years 2016 2017 2018 2019 2020 2021 2022 Percentage 71.9 76 81.9 81.4 59 56.6 54.4 Source: IEA, 2022 Technologically, when 1 ton of cement is produced, approximately 700-760 kg of CO2 equivalent emissions are generated. According to the Ministry of Science, Industry and Technology cement sector report (2021-2022), a total of 70.57 million tons of cement was produced in 2022. As a result of this production, considering the above data, it is calculated that approximately 52.20 million tons of emissions were emitted as follows. Table 10 Emission Amount of Cement Sector Year Annual cement production (million tons)* 1 ton of cement average emission amount Approximate total annual emissions (million tons) 2018 35.95 0.75 ton 26.50 2019 42.79 0.75 ton 31.24 2020 62.81 0.75 ton 46.30 2021 60.42 0.75 ton 44.42 2022 70.57 0.75 ton 52.20 * Based on the data in Annual Report, 2022 On a global scale, 5% of all CO2 emissions caused by humans are caused by cement production (Vadera et al. 2025). Our carbon cost accounting application research was conducted on the cement sector, which causes approximately 54.4% of CO2 emissions resulting from industrial processes. During the research process, the enterprise's carbon-related cost data were extracted from the accounting process, divided into environmental cost categories and expense classes, and then presented in a comparable manner. In our country, greenhouse gas emissions from cement factories are monitored and reported by accredited organizations in accordance with the regulation issued in 2016. Some of the expenses of the sector that may increase production costs due to emissions can be listed as follows; • Greenhouse gas emission measurement and analysis expenses • Depreciation expenses of greenhouse gas emission measurement device • Training expenses • Chemist and laboratory expenses • Greenhouse gas emission management personnel costs • Expenses for afforestation etc. • Expenses related to greenhouse gas emission reduction investments • Penalties, taxes 6. Production Process in the Research Sector Two basic materials are used in cement production; clinker and gypsum. Apart from these, trass, marl, limestone, slag, fly ash, blast furnace slag, and similar materials called additives are added according to the type of cement produced. The cement formed when gypsum is added to the clinker at a certain rate and ground is called Portland cement, and the cement formed when the additive material is added and the ground is called blended cement. Admixed cements described in the standards are named according to the type and amount of admixture. The quality and homogeneity of the cement produced depends on the correct and constant combination of raw materials used in the production process (Alakkas et al., 2023). Cement production generally consists of 4 stages. These stages can be called production phases. World Journal of Advanced Research and Reviews, 2025, 26(03), 1467-1485 1482 730.50.02.20.6 Taxes, Duties and Fees 84,25 730.50.02.21 Solid-Liquid Waste Utilization Costs. 730.50.02.20.6 Taxes, Duties and Fees 84,25 180 Expenses for Future Months 168,5 2.022/12=168,5 7.1.1. Unit Product Carbon Footprint Calculation The total amount of production in the enterprise in March and the total amount of carbon dioxide emissions released during the production process are approximately as follows. (The amounts remaining in the stages are not taken into account). • Total production amount: 127,600 tons • Estimated total amount of CO2 emissions caused:112,288 tons Direct emission (Fuel + Calcination)* : 95.7 tons Indirectly caused emission (Electricity etc.)**: 17.864 tons Note: Estimated average values have been used as information on the resulting CO2 emission values was not available. * Approximately 0.75 tons of CO2 is directly released in the production of 1 ton of cement 127.600 ton x 0.74 ton= 95.7 ton CO2 **Approximately 0.14 tons of CO2 is directly released in the production of 1 ton of cement 127.600 ton x 0,14 ton=17.864 ton CO2 • Approximate amount of carbon emissions per 1 ton of cement: 112.288/127.600=0,88 tons CO2 emission / ton cement 7.1.2. Unit Product Emission Cost Account: (TL) Environmental Costs: 50.550,5 Mitigation Costs: 30.680 Utilization Costs: 19.870,5 Loss Costs: - Emission Related Costs: 40.486,25 Emission Reduction Cost: 29.677 Emission Utilization Cost:10.809,25 Emission Damage Cost: - Unit Emission Cost: Total Emission Cost = 40.486,25 TL ≈ 0,32 TL/ton Total Production Amount (Ton) 127.600 ton As a result of the production realized during the month, the total production cost per ton was realized as TL 72.46. The share of emission costs in total production costs; World Journal of Advanced Research and Reviews, 2025, 26(03), 1467-1485 1483 Ratio of Emission cost to Total cost = 𝐸𝑚𝑖𝑠𝑠𝑖𝑜𝑛 𝑐𝑜𝑠𝑡 𝑝𝑒𝑟 𝑡𝑜𝑛 𝑇𝑜𝑡𝑎𝑙 𝑝𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛 𝑐𝑜𝑠𝑡 𝑝𝑒𝑟 𝑡𝑜𝑛 =0,32 TL 72,46 TL = 0,00442 ≈ 4,5 𝑝𝑒𝑟 𝑡ℎ𝑜𝑢𝑠𝑎𝑛𝑑 According to the results of the above calculations, one ton of cement produced in March caused approximately 0.88 tons of carbon dioxide emissions and the expenditures made due to emissions caused an increase of approximately 0.32 TL in the cost of one ton of cement. This increase was realized at a rate of approximately 4.5 per thousand of the total cost. It should be noted that the amount of unit product emissions may vary depending on the type of product, the type of fuel used, the production process, the technological level of the production tools used, etc. Table 14 Pacelile Cement Environmental Costs in March 2022 Environmental Costs (TL) Mitigation Costs Utilization Costs Loss Costs Emission Reduction Cost Cost of SolidLiquid Waste Reduction Noise Abatement Cost Emission Utilization Cost Cost of SolidLiquid Waste Utilization Noise Handling Emission Damage Cost Solid-Liquid Waste Noise Damage Cost 1-IMM 2-Worker 1.253 3.758 3-Civil Servant 4-DSFH 27.152 1.003 9.182 4.929 5-Miscellaneous 290 290 6-Tax 84,25 84,25 7-Amortization 2.525 Unit Total 29.677 1.003 - 10.809,25 9.061,25 - - - - Group Total 30.680 19.870,5 - General Total 50.550,5 8. Conclusion Greenhouse gases that occur in the production processes of goods and services of enterprises and are released to nature cause environmental pollution. In the long run, this pollution affects both people who live an environmentally dependent life and businesses. These effects can be in the form of increased social pressure due to environmental pollution, consumer disfavor of products and services with high carbon footprints and decrease in sales, obligation to invest in clean technologies, and increase in costs due to practices such as environmental taxes. Today, many countries have imposed reduction obligations on businesses to reduce greenhouse gas emissions. For this reason, in order to be advantageous against their competitors and to base their future planning on more realistic foundations, businesses should calculate all their costs, including the costs arising from greenhouse gas emissions, completely and accurately and take the necessary measures for cost control. In order to ensure cost control, the information transferred to accounting must be recorded, reported, and interpreted completely and clearly. In this respect, the cost accounting system should be renewed to cover all cost elements and the uniform chart of accounts should be restructured at the level of main or auxiliary accounts in such a way that the costs incurred due to emissions are not allowed to be lost in other cost items. It should be known that the more clearly the environmental cost item can be revealed, the more effective it can become in management decisions. World Journal of Advanced Research and Reviews, 2025, 26(03), 1467-1485 1484 It will not be difficult to predict that with the scientific studies to be put forward in the future and the effects of climate change becoming more noticeable, social environmental awareness will increase, legal regulations may be introduced to present the carbon footprint on products and services to consumer information, and environmental changes will occur in consumer behavior. For this reason, the decisions to be made by business managers by taking into account environmental factors in production and sales planning may have a direct impact on consumer preferences and sales figures of the products and services produced. In this case, the company will either invest in clean technologies and take other necessary measures to minimize its carbon footprint or it will have difficulty finding a place in the competitive market. One of the primary sources of carbon emissions, the cement industry, was used in this study to document the entire environmental costs incurred by Pacelile Cement Company. A sample chart of accounts was also suggested. Managers are now able to make more informed decisions as a result of the increased visibility of environmental costs in reporting in relation to cost kinds, locations, and environmental cost categories. Furthermore disclosed were the emission cost of the unit product and the emission cost ratio in relation to the total cost, as well as the carbon footprint of the unit product created—that is, the approximate quantity of carbon emissions discharged into the atmosphere per unit product produced. Consequently, it can be observed that enterprises will persist in experiencing direct or indirect impacts and incur some expenses related to environmental preservation and the mitigation of carbon emissions. For enterprises, the most crucial thing is to reduce the pace of impact. Businesses must be able to precisely detect carbon costs, disclose them, make them available for management decisions, and control these costs by making the appropriate decisions in order to achieve this. This is only possible with an effective accounting and costing system that accounts for environmental costs. References [1] Ahmad, S. R., & Khan, I. A. (2023). 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