TRUE COST

What is True Cost Accounting?

True Cost Accounting (TCA) is a new way of identifying the real costs of a specific product or service. TCA calculates not only the direct costs like raw materials and labour, but also the effects on the natural and social environment in which a company operates.

How does TCA work?

TCA not only looks at a company’s usual financial figures, but also calculates its impact on the entire environment in which it operates. These effects are calculated in monetary terms so the amounts can be incorporated in the True Cost books of a company.

What is the added value of the handbook?

The TCA handbook closes the gap between financial and sustainability information allowing for reporting which captures all of a businesses‘ impacts. The handbook provides a detailed description of indicators, monetisation factors, data collection and reporting of social, environmental and health impacts. The handbook is tested and evaluated in real businesses.

Who can use the TCA handbook?

Farmers and food businesses Farmers and food businesses can assess and evaluate their impacts and risks, and use the handbook for sustainability accounting and reporting. TCA provides transparency and clarity for customers, creditors and other stakeholders. Financial institutions Banks and other financial institutions can use TCA to compare the sustainability performance of businesses.