Environmental costs have increased significantly for large firms over the past two decades and traditional cost information systems often do not fully or accurately measure environmental costs. ABC has been suggested as a framework to address these increasing costs by overcoming many of the measurement problems posed by traditional systems. However, there are relatively few explanations of just how to apply the ABC framework to identify and quantify specific environmental costs. This article describes a case study in which a detailed cost analysis process, Environmental Activity Cost Analysis (EACA), based on ABC, that was developed and used to measure the environmental costs of a chemical processing facility.