Pilot project on sustainability management accounting with the Styrian automobile cluster

The paper is based on a project with the Styrian automobile cluster in Austria and selected member companies. In six companies, the environmental management costs, as well as further costs for health and safety, risk management and other social issues were assessed. Less tangible items and external effects are addressed. Starting with the efforts to assess the financial effects of the sustainability performance indicators provided by the Global Reporting Initiative (GRI) for sustainability reporting, the UN DSD (United Nations Division for Sustainable Development) method for environmental management accounting (EMA) was enlarged by several other cost categories. This paper describes these and the experiences from the pilot projects.The two major cost drivers are the purchase costs of non-product output and the costs related to lost working days because of sick leave and accidents and the overtime pay to make up for these lost working days. The work of the Environmental Health and Safety (EHS) department helps to reduce these costs. The cost assessment scheme allows one to better understand the relationships between costs for treatment of undesired effects due to unimplemented protection measures and lost material purchase value in comparison to the prevention costs, which mainly consist of the internal management departments and related external consultants.The assessment of sustainability management costs is of interest for organisations, which already publish a sustainability report and want to more accurately assess the financial effects of such aspects addressed via EMA. It is also useful for small and medium sized companies, which use the assessment as a starting point to shape their (EHS) system. The main benefits are more accurate data and better arguments for investment appraisal or performance indicators as well as improved consistency of information and management systems that should help them to improve their environmental, social and economic performance.     

Incorporating sustainability into supply management in the automotive industry – the case of the Volkswagen AG

Companies are perceived as important actors in the drive for sustainability. Linked to this, and in response to increasing demands from various stakeholder groups, companies start to look at their supply chain to enhance their overall sustainability profile. Two major triggers can be identified: (1) focal companies are held responsible for environmental and social problems caused by their suppliers, which become more and more important as (2) an increasing share of value is created at the supplier level. In response to such demands, companies have to find ways to incorporate environmental and social aspects into their supply (chain) management. Therefore, environmental and social standards are integrated into supply management by amending the purchasing processes. This paper presents one approach to integrate social and environmental standards into supply policy and supply management at the Volkswagen AG, a focal company of the automobile industry. Therefore, required changes of the sourcing and supply structures were identified during an action research project, and possible options adaptable for company internal integration are shown.     

Experiences of and views on third-party assurance of corporate environmental and sustainability reports

This study explores the development of environmental and sustainability reporting in Sweden and the dynamics behind the corporate decision to introduce, or not to introduce, third-party assurance of voluntary reports. The results are based on interviews with 28 Swedish companies, an analysis of corporate environmental/sustainability/annual reports as well as interviews with assurance providers. Between 1990 and 2003, the number of corporate voluntary reports increased and by 2003 approximately one-third of the reports were subject to third-party assurance. In general, the assured companies were positive in regards to the perceived benefits from third-party assurance, e.g. guidance on how to develop efficient internal reporting systems and increased credibility for published data. The companies without assurance were hesitant to adopt the concept. Their main arguments included the high cost of assurance and the lack of evidence that third-party assurance would result in enhanced credibility. According to the companies, the driving forces for the future development of assurance practices will most probably consist of a combination of proactive approaches from leading companies, generally accepted reporting guidelines and assurance methods, increased pressure from stakeholders and the general acceptance that third-party assurance creates benefits for the company and its stakeholders. In conclusion, this study calls for more attention to be paid towards establishing possible links between methods for third-party assurance and increased credibility for corporate environmental or sustainability reports.     

Nutrient budgets: sustainability assessment of rainfed lowland rice-based systems in northeast Thailand

In northeast Thailand, the sustainability of rainfed lowland rice-based systems, the dominant land-use system (LUS) in the region, is a concern for the welfare of the population in this relatively poor region. Poor soil fertility and low inputs are seen as major causes of this lack of sustainability. In this context, the assessment of nutrient budgets is seen as a powerful tool for the assessment of critical components of the sustainability of this particular LUS. Biophysical, socioeconomic, and management-related data on the farming systems were collected for 30 farms in Ubon Ratchathani Province, northeast Thailand. A relational database system (RDBS) was developed to manage and analyze the data. The RDBS includes a calculation procedure for the semi-automatic generation of partial nutrient balances. Partial nutrient balances are good indicators for some critical components of sustainability, and important for decision support on soil fertility management when considered with the additional factors that are required for a full nutrient balance.For the rice-based systems of 30 farms, mean partial balances were 12 kg N ha⁻¹, 8 kg P ha⁻¹, and 7 kg K ha⁻¹ per year. Large variations in partial N, P, and K balances exist among different farms and, even more so, for different land utilization types (LUTs). The LUTs are distinct cropping system–management combinations that occur down to the subfield level. Many of the partial balances assessed were negative.Farmers manage nutrients for similar parcels of land in very different ways. This results in the observed large variation in partial nutrient balances, even for the same type of land use within the same farm. These results confirm the high inter-farm and intra-farm variability for partial balances of N, P, and K of several preliminary studies. Farmer interviews and field surveys revealed that different socioeconomic factors appear to be related with inter- and intra-farm variability in nutrient budgets. In addition, the socioeconomic component of the case study revealed that diversification of income sources, particularly off-farm employment, had a larger impact on household income than rice production. Furthermore, while many less well-off households had a greater reliance on rice production, many farms with high off-farm and non-rice farm income had a higher total production of rice.The nutrient balance approach, starting with partial nutrient balances, may become an important component of a dynamic and site-specific decision support tool (DST) for nutrient management, and a relational database of the form used in this study may become a key element.     

Manufacturing actor’s LCA

Modern industrial environmental management encompasses life-cycle thinking. This entails considering not only the emissions and resource use of the company’s production processes, but also the environmental consequences of all processes related to a product’s life cycle. However, no single actor can influence the whole life cycle of a product. To be effective, analysis methods intended to support improvement actions should therefore also consider the decision makers’ power to influence.Regarding the life cycle of a product, there are at least as many perspectives on life-cycle thinking as there are actors. This paper presents an approach with which manufacturing decision makers can sharpen the focus in life-cycle assessment (LCA) from a conventional ‘products or services’ emphasis to a company’s manufacturing processes. The method has been developed by combining knowledge gained from earlier LCA studies with new empirical findings from an LCA study of an SKF manufacturing line.We demonstrate how system boundaries and functional units in an LCA can be defined when adding the perspective of a manufacturing decision maker to the product life-cycle perspective. Such analysis helps manufacturing decision makers identify improvement potentials in their spheres of influence, by focusing on the environmental consequences of energy and material losses in manufacturing rather than merely accounting for the contributions of individual stages of the life cycle to the overall environmental impact. The method identifies and directly relates the environmental consequences of emissions or raw material inputs in the product life cycle to manufacturing processes. In doing so, the holistic systems perspective in LCA is somewhat diminished in favor of the relevance of results to manufacturing decision makers.     

Integrated management systems: experiences in Italian organizations

Integrated Management Systems (IMS) are becoming more and more important, but experiences may differ across regions and companies of different size and sectors. The study reported in this paper has been developed using a sample of Italian companies to investigate the potential for integration starting from an analysis of the common aspects in terms of real motivations (company image, costs saving, etc.), obstacles (unclear regulations, lack of financial support, etc.), driving forces and external pressures that companies meet when implementing each of the management systems analysed: Quality (ISO 9001:2000), Environmental (ISO 14001:2004), Occupational Health and Safety (OHSAS 18001:1999), and even, Social Responsibility (SA 8000:2007) management systems.     

Assessing agricultural systems vulnerability to climate change to inform adaptation planning: an application in Khorezm,Uzbekistan

Agriculture is one of the most vulnerable sectors to climate change. The current vulnerability assessments through traditional fragmented sectoral methods are insufficient to capture the effects on complex agricultural systems. Therefore, the traditional methods need to be replaced by integrated approaches. The objective of this study is to propose a holistic vulnerability assessment method for agricultural systems. By aggregating both agro-ecological and socio-economic information, we develop an agricultural systems vulnerability index (ASVI) which allows for (i) a classification of geographical units according to their vulnerability level, (ii) an identification of key determinants of vulnerability for each unit and (iii) an assessment of adaptation policy scenarios considering their effects on the sustainability of the analysed systems. The proposed method is applied in the Khorezm region of Uzbekistan—a representative irrigated agricultural region in the lower Amu Darya river basin. A decision support tool is used to facilitate multi-criteria decision analysis, including the computation of the index and performing sensitivity analysis of the results. The assessment for Khorezm reveals significant spatial differences of vulnerability levels due to a variation of contributing factors, e.g. natural resources, water productivity, rural-urban ratio. It reveals also that feasible land and water management policies could reduce the vulnerability in Khorezm, particularly in the districts with the poorest agro-ecological conditions. Overall, the proposed method could support national and local authorities in the identification of sustainable adaptation policies for the agriculture sector.     

Eco-design in innovation driven companies: perception, predictions and the main drivers of integration. The Spanish example

This study attempts to contribute to the scarce knowledge on how eco-design, and to broad extent sustainability, is connected to innovation driven companies. In particular, this cross sectional research verifies i) perception and knowledge of eco-design of the professionals from innovation driven companies in Spain, ii) specific eco-design strategies towards sustainability that innovation driven companies are integrating in their strategic plans and their application in the supply chain and iii) the companies’ future predictions on innovation and eco-design linkage. The methodology of this paper is based on a survey, developed defining measurable proxies for both eco-design and innovation approaches and conducted on 10,000 multidisciplinary professionals from Spanish innovation driven companies. The study shows that sustainability is a cardinal driver for innovation and that responses have specificities regarding company size, activity or respondent position. Innovation and eco-design strategies for the future aim to use materials with a lower environmental impact and to develop new concepts.     

A method for sustainable product development based on a modular system of guiding questions

In this paper, we present a method for sustainable product development (MSPD) with the aim of integrating social and ecological aspects of sustainability with a strategic business perspective in product development. The method applies backcasting from basic principles for sustainability, which allows a strategic approach, and it includes a modular system of guiding questions that are derived by considering these principles and the product life cycle. Initial testing in Swedish companies indicates that the suggested MSPD promotes a ‘bird's eye’ perspective and encourages and aids development of products that support society's transformation towards sustainability. Furthermore, it is concluded that the modular system provides flexibility and user-friendliness.     

Sustainability in the New Zealand wine industry: drivers,stakeholders and practices

This research aims to investigate various sustainability issues in the New Zealand wine industry. Namely, the study examines (1) what drives the industry to engage in sustainability practices, (2) the role of stakeholders in the company's decision-making, and (3) environmental practices related to water utilization, chemicals and waste management. A qualitative research approach supplemented by quantitative measures was adopted to answer the research questions. Twenty-four wineries were studied. The research found that the most important drivers for sustainable practices are personal values, preferences and satisfaction with the profession (i.e., enjoyment of the work itself), followed by product quality and customers' demand. Size of firm also appears to be an important factor. New Zealand wine companies are also driven by the market, but companies do not receive a price premium for grapes grown sustainably or organically grown. The study proposes a typology matrix that differentiates wineries' involvement in sustainability based on the extent of sustainability practices and sustainability drivers.     

Development of a facility-based environmental performance indicator related to sustainable development

Companies are increasingly interested in environmental performance indicators as a means of managing the degree to which environmental goals and objectives are implemented. Many companies have publicly endorsed goals associated with sustainable development, like the International Chamber of Commerce's (ICC) principles for sustainable development. There is a need for metrics that facilitate implementation of these principles at the facility level and for research metrics that measure management improvement. An existing environmental self-assessment management tool called ESAP by the Global Environmental Management Initiative has been modified to measure a facility's response to the ICC's 16 principles of sustainability. The new tool's focus was shifted to a practical, facility based and easily applied assessment of progress towards sustainable development as represented by the ICC's 16 principles of sustainability. The new tool was called the Green Management Assessment Tool or GMAT, pilot tested and used in a research setting. Such tools have value to companies that are interested in the strategic goals of sustainable development and struggle with shifting corporate goals and objectives to manufacturing operations at the facility level.     

A conceptual framework for analyzing sustainability strategies in industrial supply networks from an innovation perspective

This article proposes a new conceptual framework concerning the implementation of sustainability in supply networks from an innovation perspective. Based upon a recent qualitative literature review in environmental, social/ethical and logistics/operations management journals, this article summarizes and analyses the approaches found. Concluded is that even though innovation, socialization, experimental learning and cultural perspectives have been acknowledged as being relevant to explaining supply network dynamics in general, they are rarely included in the current frameworks concerning sustainability. The question still remains why companies influenced by the same external factors and similar in size and power develop a different strategy towards sustainability aspects in their supply network. The article demonstrates with the first results of a survey held in the fashion/clothing sector the relevance of this question.The proposed conceptual framework states that the capability to develop a strategy is influenced by the innovation power of the “focal” company and its supply network. The three implementation strategies presented in the framework are: resign, offensive and defensive. Two propositions are defined to be tested. These propositions focus on the relation between the level of innovation power and the implementation strategy concerning sustainability. Factors used to characterize the innovation power of the “focal” company are: external orientation and transparency, cooperation between departments, learning and adapting, leadership, autonomy and possibility for experimenting, and result driven. Cooperation in the supply networks is characterized by factors like trust, reputation, joint programmes, and cooperative information systems throughout the supply network.In empirical research, strategies found will be related with the level of innovation power. This level will be measured using the factors mentioned. The results might add a new innovation dimension to an improved conceptual framework within the interdisciplinary field of sustainability and supply network research.     

A decision inventory approach for improving decision support for climate change impact assessment and adaptation

Assessing and adapting to the impacts of climate change requires balancing social, economic, and environmental factors in the context of an ever-expanding range of objectives, uncertainties, and management options. The term decision support describes a diverse class of resources designed to help manage this complexity and assist decision makers in understanding impacts and evaluating management options. Most climate-related decision support resources implicitly assume that decision making is primarily limited by the quantity and quality of available information. However, a wide variety of evidence suggests that institutional, political, and communication processes are also integral to organizational decision making. Decision support resources designed to address these processes are underrepresented in existing tools. These persistent biases in the design and delivery of decision support may undermine efforts to move decision support from research to practice. The development of new approaches to decision support that consider a wider range of relevant issues is limited by the lack of information about the characteristics, context, and alternatives associated with climate-related decisions. We propose a new approach called a decision assessment and decision inventory that will provide systematic information describing the relevant attributes of climate-related decisions. This information can be used to improve the design of decision support resources, as well as to prioritize research and development investments. Application of this approach will help provide more effective decision support based on a balanced foundation of analytical tools, environmental data, and relevant information about decisions and decision makers.     

Simplified life cycle sustainability assessment of mangrove management: a case of plantation on wastelands in Thailand

Sustainable mangrove management needs to consider trade-offs between multiple benefits provided by mangrove ecosystems and to balance the conflicting objectives of various stakeholders. The aim of the present study is to assess the sustainability of mangrove management based on the life cycle approach. We examine two mangrove management systems in Thailand, namely, the strict preservation and charcoal production systems. The results show that the strict preservation system has an advantage over the charcoal production system from the environmental perspective (the net amount of CO₂ absorbed by mangroves) while the charcoal production is a more favorable system than strict preservation from the social perspective (the amount of employment created in local communities). On the other hand, it is difficult to say that both systems are sustainable from an economic aspect. The charcoal production system needs to develop improved management regimes for commercial charcoal production and requires financial assistance in the period when its net cash flows are negative. As solutions for these problems, the introduction of community forest management and the utilization of a fund for REDD (Reducing Emissions from Deforestation and Degradation in Developing Countries) can be proposed.     

中国经济持续发展水平的能值分析

在对现行可持续发展水平度量方法进行简要评述的基础上,提出了以能值分析(EMA)为理论支撑的区域性可持续发展评价指数。作为案例研究,计算了中国1978～1998年经济系统的可持续发展指数(ESI)。中国经济系统的ESI从高到低的变化历程表明,以经济系统能值流来衡量,中国经济发展的可持续性处于下降态势,表征为前期下降剧烈,目前趋于平缓。具体表现为对资源特别是能源的过度消耗以及对环境的持续强大压力。     

Re-considering product design: a practical “road-map” for integration of sustainability issues

The proliferation of sustainability assessment principles, strategies, actions, and tools has created confusion about pathways forward for companies. It is unclear how existing approaches are complementary or distinct. How does a company assess current products and materials? How could designers create more sustainable products? What criteria, principles, approaches, and tools should be applied? Why? Is there a practical “road map” to guide product designers and product development managers in integrating sustainability issues into their decision-making processes?This article builds on previous frameworks for understanding the interconnections between various assessment principles, strategies, actions, and tools related to industrial ecology, human and labor rights, and corporate social responsibility [Waage S, Geiser K, Irwin F, Weissman A, Bertolucci M, Fisk P, et al. Fitting together the building blocks for sustainability: a revised model for integrating ecological, social, and financial factors into business decision-making. Journal of Cleaner Production 2005;13(12):1117–206; Robèrt K-H, Schmidt-Bleek B, Aloisi de Larderel J, Basile G, Jansen JL, Kuehr R, et al. Strategic sustainable development—selection, design and synergies of applied tools. Journal of Cleaner Production 2002;10(3):197–214; Robèrt K-H. Tools and concepts for sustainable development, how do they relate to a framework for sustainable development, and to each other? Journal of Cleaner Production 2000;8(3):243–54]. Expanding on past work, this piece suggests a “road map” for application by product designers and product development managers. A four-phase process is offered for integrating systems and sustainability perspectives into product design, manufacturing, and delivery decisions.     

A framework and indicators for evaluating policies for conservation and development: The case of wildlife management units in Mexico

The Mexican government has an innovative policy model for biodiversity conservation and rural development that includes permissible use of wildlife within a System of Land Management Units (SUMA, by its Spanish acronym). This co-management approach has been successful in terms of landowner participation, since the SUMA currently covers 38.2 million hectares (nearly 20% of Mexican territory). However, after 18 years of implementation, there has been no comprehensive evaluation by which to assess its effectiveness at national level. This article introduces the SUMA policy, its implementation and outcomes, and proposes a framework for conducting institutional monitoring and evaluation within an adaptive co-management approach. Our methodology comprised analysis of the achievements and challenges reported through interviews with stakeholders, journals and grey literature, and a review of the SUMA Information System (SIS) and its decision-making information needs. As result we have developed a set of 40 environmental, social and economic indicators grouped into five distinct but complementary dimensions within a sustainability framework: (I) Biodiversity conservation,(II) Wildlife management, (III) Economics, (IV) Social welfare and (V) Administration. These indicators can be incorporated into the SIS in order to support program evaluation and strengthen decision-making. Our article provides specific pathways for developing policy-oriented evaluation systems for worldwide biodiversity and conservation initiatives.     

Pollution minimisation practices in the Australian mining and mineral processing industries

Research was conducted to identify some of the current pollution minimisation practices adopted in Australia's mining and mineral processing industries. Initially, 84 mining and mineral processing companies were approached for inclusion in the study, with request only made for information that was available to the company stakeholders and the wider general community. Among the responses received, BHP Billiton, BlueScope Steel, Newmont Australia Limited and AngloGold Australia provided the information requested and/or a substantial quantity of information through reports on their company website. Analysis of the data collected for these companies indicated that improvements were made, and that policies had been implemented over the previous few years. The pollution minimisation and policy practices adopted at the operations of these companies include environmental management systems, advanced pollution control technologies, environmental awareness training for employees, and requirement – from company stakeholders – for increased accountability of environmental impacts.     

Inter-linking issues and dimensions in sustainability reporting

During the last decade, Sustainability Reporting (SR) has been increasingly adopted by corporations worldwide. This is evidenced by the adoption of several guidelines, such as the ISO 14000 series, the Social Accountability 8000 standard, and the GRI Sustainability Guidelines. SR shows promise to help corporate leaders and their employees to contribute towards achieving sustainable societies. However, most of the guidelines and standards address sustainability issues through comparmentalisation, thereby, leading to the separation of the economic, environmental, and social dimensions. Due to these divisive approaches, holistic assessments of the effects of their efforts are seldom properly integrated into coporate decisions and procedures to make improvements for example through Cleaner Production, Worker Health and Safety, Consumer Safety, and reductions in the negative short and long-term Social and Environmental Impacts.This paper analyses SR reports from three companies with the help of Grounded Theory's constant comparative analysis. This analytical framework helped the authors to systematically assess the degree to which the companies addressed economic, ecological and social issues separately or in an integrated and inter-linked manner. From the inter-linkages found, a new category is proposed to be added to future SR. This new category can help corporate SR planners and researchers on sustainability reports to better understand how the company leaders understand their responsibilities with regard to SD. These inter-connectednesses are highly relevant in many short and long-term dimensions of supply chain management, global warming, ecological disruption and societal equity issues, especially with regard to the local, national and global energy issues of fuels and oils, the central themes of the conference at which this paper was originally presented. It also plays a key role in real, long-term changes towards Sustainability, where the time dimension plays a key role in human survival on Planet Earth.     

A recursive ecological indicator system for the supply chain of a company

This paper proposes the concept of cumulative eco-intensity with which environmental or sustainability indicators are related to the added value of economic activities. The intensities are passed on recursively from supplier to supplier and thus make it possible to include upstream and downstream effects along the supply and waste disposal chain. The process is applied to whole companies and (by contrast with LCA) not to individual products. At comparatively low expenditure for the individual companies, it allows vertical comparisons along the value-adding chain and horizontal comparisons among companies or production locations. This provides a decision-making aid for a company seeking to fulfil its ecological or sustainability responsibility in the entire production and supply chains.