Adaptive Life Cycle Costing as an Approach to Achieving Environmental Sustainability: A Study of the Iraqi Soft Drinks Company
DOI:
https://doi.org/10.71285/icpt.v3i2.41Ключевые слова:
Adaptive Life Cycle Costing, Soft Drinks, Environmental Sustainability, Supply ChainsАннотация
The purpose of this study is to create an adaptive framework for Life Cycle Costing (LCC) analysis which can be utilized to improve environmental and economic sustainability in the soft drinks industry by including recycling practices of packaging materials and recycled raw materials in the scope of cost analysis. To meet the aim of the study, a multi-stage exploratory and explanatory approach was used based on the Abductive Methodology with ISO 15686-5:2017 as a key basic for the development of Adaptive Life Cycle Costing framework. An Environmental and Circular Life Cycle Costing (EC-LCC) model was designed and then tested for its applicability by applying it to a case study of Baghdad Soft Drinks Company with available financial information. Analysis results indicate that the benefits of circular economy practices result in lower life cycle costs than in the conventional practice. The study suggests to apply ‘Adaptive Life Cycle Costing' in industrial companies for economic and environmental decisions, with the highest priority being the investment in the recovery and recycling of PET bottles and packaging materials, the progressive adoption of recovered materials and enhancement of energy and water use efficiency. It also calls for creating more precise waste collection and monitoring systems, to verify in the field the expected results of the model and to refine the results of investments in circular economy practices.
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