The Role Of Sustainable Value Chain Technology In Rationalizing Costs

Abstract

This research aims to study and analyze the role of sustainable value chain technology in rationalizing costs and enhancing environmental sustainability. This research is implemented at the General Company for Electrical and Electronic Industries - Heater Manufacturing Plant, based on data and final financial statements for the year 2024. The importance of the research stems from the need to overcome the challenges associated with traditional costing systems, which often lack environmental considerations and long-term sustainability, negatively impacting profitability and operational efficiency. The research environment is characterized by several problems, most notably the significant increase in fixed costs and reliance on environmentally unfriendly raw materials. This calls for the implementation of modern accounting strategies aimed at achieving financial efficiency and environmental sustainability. The researcher reached a set of conclusions, most notably that adopting a sustainable value chain represents an effective approach to rationalizing costs and enhancing environmental sustainability, especially in an environment suffering from high fixed costs and the use of unsustainable materials. This contributes to improving resource consumption efficiency, reducing waste and extravagance, and enhancing compliance with environmental regulations. This makes this approach a strategic choice for industrial companies seeking to achieve a balance between sustainability and profitability in the modern business environment.