EcoMetrics: Integrating direct and indirect environmental costs and benefits into management information systems

This article suggests a set of metrics that may impact both profitability and environmental quality, capture and quantify eco-efficiency costs and benefits, and help managers understand and focus on tangible, yet difficult-to-quantify benefits (such as improved morale, innovation, etc.). In order to do this, it will frame the issues pertinent to developing eco-efficiency metrics; identify criteria for effective metrics to enable companies/consultants/etc. to discuss, evaluate, and select program metrics; outline the universe of possible metrics; suggest key metrics for a typical company; identify data quality, availability and other constraints; and suggest a methodology for incorporating environmental metrics into operating metrics. Note: This article is not intended to provide a definitive overview of environmental metrics; rather, it proposes an operational framework for considering, selecting, and implementing metrics that are meaningful in both environmental and business terms. For an overview, see for example, Environmental Policy Performance Indicators;¹ Company Environmental Reporting;² The Greening of Industrial Ecosystems;³ Measuring Corporate Environmental Performance⁴]. The flow and embodiment of materials and energy in production and consumption activities of the economy underlie both economic growth and environmental perturbations… Yet] existing accounting systems can prevent modern firms from internalizing environmental costs and considerations, and can compound difficulties encountered in effecting environmentally preferable changes⁵.