Environmental key performance indicators: the role of regulations and stakeholder influence

Environment Systems and Decisions - Environmental protection is of vital importance and needs to be considered in the context of business strategies, including companies’ reporting decisions....     

Environmental performance indicators for enhancing environmental management

Traditionally, environmental issues and concerns have been viewed as a constraint to businesses. This has resulted in environmental managers relying heavily on a reactive, compliance-based approach to justify change. Businesses are now recognizing that efficient management in the environmental arena can benefit the entire company and open new opportunities for increased profits. Managers have acknowledged that environmental issues can be integrated into daily business trends and activities. Not only does sound environmental management decrease liability, but also in current markets a “green” image can attract investors and customers. This article shows how one tool that progressive companies are focusing attention on—environmental performance indicators—is being used to convey the current status of environmental issues and improve the management of these issues for the benefit of the company as well as the environment.     

Benchmarking for continuous performance improvement: Tactics for success

Benchmarking is a powerful management technique that can help improve an organization's environmental performance on a number of dimensions. Benchmarking is not a cookbook solution but a systematic process of searching for the organization that is the best at a given process (“best-in-class”) and continually adopting or adapting new processes to accelerate improvement. As a continual process including planning, analysis, integration, action, and maturity phases, benchmarking should be integrated into the planning stage of the management system. Once processes are strategically identified, they can be improved within the company's Total Quality Management program. Many benefits, such as teamwork and job satisfaction, accompany benchmarking, but the greatest companywide advantage is becoming more competitive. Finding a suitable partner is crucial to the success of the benchmarking process. This article shows the traditional one-on-one approach is the most effective because it saves time and money that allows organizations to learn from each other. In addition, examples of where benchmarking partners may be found, as well as several success indicators in the benchmarking process, are presented. Since the ultimate intent of benchmarking is positive change, the difference between reengineering and continuous performance improvement and the role benchmarking plays in each is also discussed.     

Development of performance indicators for small Quebec drinking water utilities

This study presents a comparative performance analysis of small drinking water utilities in Quebec (Canada). The investigation bears on 10 utilities that use surface water or groundwater under the direct influence of runoff and apply chlorination as the only treatment before distribution. The utilities under study were divided into two groups: four utilities that had never or rarely provided water violating provincial drinking water microbiological standards (relating to fecal and/or total coliform bacteria), called nonproblematic utilities, and six utilities that quite often violated the standards, designated as problematic utilities. The objective of the study is to develop utility performance indicators capable of explaining current and historical distributed water quality. Indicators are based on operational, infrastructure, and maintenance characteristics of utilities that are integrated using a multivariable weight-based index. Results show that utility performance indicators are systematically better for the nonproblematic group of utilities as compared to the problematic group. Disinfection-related, infrastructure, and maintenance variables are those that most contributed to indicator values. Sensitivity analyses served to assess the impact on indicator results of excluding variables and changing their weights.     

Applying a continuous improvement methodology to lockheed's environmental programs

The number of environmental statutes has increased precipitously over the last twenty years. Regulations to implement these statutes went from four thousand pages in 1978 to over twelve thousand pages in 1992. With the many requirements of the regulatory programs comes a high risk of failure. Applying the continuous improvement principles and tools presented in this article has helped Lockheed meet this challenge by providing a focus and balance in its environmental programs.     

Development of key performance measures for the automobile green supply chain

The main purpose of this study was to develop a set of measures for evaluating the performance of the automobile green supply chain. This study reviewed various literatures on green supply chain performance measurement, environmental management, traditional supply chain performance measurement, and automobile supply chain management. In order to comprehensively and effectively establish the relevant measures, a suitable framework which considered the automobile green supply chain as a two-in-one chain was adopted. This two-in-one chain comprised a forward and backward chain for the automobile industry. Consequently, 10 measures with 49 metrics and 6 measures with 23 metrics were identified and developed for the forward and backward chains, respectively. Sequel to the development of these measures, a survey was conducted using a four-page questionnaire distributed to experts (including academics and practitioners) to establish their importance and applicability. The findings of this study suggested that the importance and applicability of all the developed measures have been substantiated. For the forward chain, the most crucial measure was customer perspective while the most applicable one was traditional supply chain cost. The reverse chain measures were topped by management commitment in terms of both importance and applicability. This study contributed to the advancement of knowledge by pioneering the development of a set of holistic measures for evaluating the performance of the automobile green supply chain. The study was wrapped up with the proposition of directions for further studies.     

Kodak's safety performance indexing—a tool for environmental improvement

Safety performance has a direct effect on employees' productivity and quality of work life, and on company profits and image in the community. Enormous human and financial losses can result from poor safety performance, and all such losses are preventable. To prevent these potential losses, safety performance must be continually improved across all levels of the organization. Effective safety programs are the key to improved safety performance. But how do we know when a safety program is effective? How can we measure safety performance and set goals for improvements? How can we track progress toward these goals? This article demonstrates how a powerful performance management tool —performance indexing— can be used to help improve safety performance throughout your company. This tool can also be used to measure, track, and improve environmental and occupational health performance.     

An approach for analysing the potential for material efficiency improvement

Material efficiency improvement saves energy and reduces the consumption of primary resources and reduces the volume of waste. In this article an approach for analysing the potential for material efficiency improvement is proposed and discussed. In this approach the product functions performed by the materials and various improvement measures are taken into account. The potential for material saving and associated energy saving is assessed and evaluated economically. In this paper the approach is tested in an analysis of the potential for material efficiency improvement with respect to plastic packaging in the Netherlands. The technical reduction potential is found to be 34 ± 7% (157 ± 30 ktonne virgin plastics). Realization of this potential would improve the energy efficiency of the lifecycle of plastic packaging by 31% (10 PJ in 1988). From our study we conclude that our approach can indeed be used to investigate the potential for material efficiency improvement. However, a reliable technical and particularly an economical assessment of reduction measures cannot be made until more detailed data become available.     

Environmental performance indicators: Balancing compliance with business economics

Many companies are examining ways to integrate environmental performance into the management and operation of their core businesses. Basic principles from the application of TQM in manufacturing will help bring environmental management into the mainstream of business operations. Likely results include improved and sustained compliance and improved long-term financial performance. The author addresses a critical first step, which is developing a common language and system for measuring environmental performance and setting goals for continuous improvement.     

EU sustainable development indicators: An overview

The European Union's commitment to sustainable development at the 1992 Earth Summit resulted in an EU‐wide sustainable development strategy, adopted in Gothenburg in 2001. This article presents an overview of the set of sustainable development indicators (SDIs) recently adopted by the European Commission to monitor, assess and revise the strategy. It provides a critical assessment of the current status of the indicator set, and reviews the main policy trends in the areas of the strategy through a brief analysis of headline indicators, placing energy and climate change issues in a broader perspective. Finally, the article compares the energy SDIs to the recent inter‐agency energy indicators for sustainable development (EISD), underlining their similarities as well as their different priorities and objectives. The article concludes that further research is needed to improve the SDI set and further explore the linkages between themes.     

Environmental performance policy indicators for the public sector: the case of the defence sector

The development of environmental performance policy indicators for public services, and in particular for the defence sector, is an emerging issue. Despite a number of recent initiatives there has been little work done in this area, since the other sectors usually focused on are agriculture, transport, industry, tourism and energy. This type of tool can be an important component for environmental performance evaluation at policy level, when integrated in the general performance assessment system of public missions and activities. The main objective of this research was to develop environmental performance policy indicators for the public sector, specifically applied to the defence sector. Previous research included an assessment of the environmental profile, through the evaluation of how environmental management practices have been adopted in this sector and an assessment of environmental aspects and impacts. This paper builds upon that previous research, developing an indicator framework--SEPI--supported by the selection and construction of environmental performance indicators. Another aim is to discuss how the current environmental indicator framework can be integrated into overall performance management. The Portuguese defence sector is presented and the usefulness of this methodology demonstrated. Feasibility and relevancy criteria are applied to evaluate the set of indicators proposed, allowing indicators to be scored and indicators for the policy level to be obtained.     

Evaluating farm performance using agri-environmental indicators: recent experiences for nitrogen management in The Netherlands

Intensive agriculture, characterized by high inputs, has serious implications on the environment. Monitoring and evaluation of projects aiming at designing, testing and applying more sustainable practices require instruments to asses agronomic as well as environmental performance. Guidelines for Good Agricultural Practice (GAP) or Good Farming Practice (GFP) define sustainable practices but give limited insight into their environmental performance. Agri-environmental indicators (AEIs) provide information on environmental as well as agronomic performance, which allows them to serve as analytical instruments in research and provide thresholds for legislation purposes. Effective AEIs are quantifiable and scientifically sound, relevant, acceptable to target groups, easy to interpret and cost-effective. This paper discusses application of four AEIs for nitrogen (N) management in three Dutch research projects: 'De Marke', 'Cows and Opportunities' and 'Farming with a future'. 'De Marke' applied Nitrogen Surplus and Groundwater Nitrate Concentration in the design and testing of environmentally sound dairy systems. 'Cows and Opportunities', testing and disseminating dairy systems designed at 'De Marke', mainly applied Nitrogen Surplus, while 'Farming with a future' used Nitrogen Surplus, Groundwater Nitrate Concentration and Residual Mineral Soil Nitrogen to support arable farmers in complying with Dutch legislation (MINAS). Nitrogen Surplus is quantifiable, appealing and easy to interpret, but lacks scientific soundness or a good relationship with groundwater quality. Nitrogen Use Efficiency is sensitive to changes in management, while Residual Mineral Soil Nitrogen is appealing and cheap, but has difficulties in scaling. Groundwater Nitrate Concentration lacks clear rules for sampling, is labor consuming, expensive and mainly used in combination with other indicators. AEIs enhanced improvements in N management by facilitating (i) definition of project goals, (ii) design of desired systems, (iii) evaluation of applied systems and (iv) improving effective communication. AEI applications in other countries show a similar pattern as found in The Netherlands. Limitations to AEI application relate to inconsistencies between different indicators, heterogeneity of soil characteristics and linkages of N, carbon and water management. AEIs should be applied in an integrated evaluation, at a scale that reflects the farm's spatial variability. Simple AEIs like Nitrogen Surplus should be supported by other indicators and/or model calculations. The paper concludes that AEIs proved their value in design, implementation and testing of farming systems, but they should be used with care, always keeping in mind that indicators are simplifications of complex and variable processes.     

Environmental performance indicators: an empirical study of Canadian manufacturing firms

The aim of this exploratory study is to examine the importance of measurement and use of environmental performance indicators (EPIs) within manufacturing firms. Two research questions are investigated: (i) To what extent are firm characteristics associated with the importance of measurement of various categories of EPIs? (ii) To what extent are firm characteristics associated with global and specific uses of EPIs? More specifically, this paper examines four uses of EPIs (i.e. to monitor compliance, to motivate continuous improvement, to support decision making, and to provide data for external reporting) as well as four characteristics of firms, namely environmental strategy, International Organization for Standardization (ISO) 14001 compliance, size, and ownership. This study contributes to the environmental management accounting literature by collecting and analyzing empirical evidence that provides a better understanding of the associations among firm characteristics and EPIs.     

The chemical industry's commitment to continuous improvement in environmental performance

One of the greatest challenges facing the chemical industry today is regaining the lost confidence of the public. This concern led to the Chemical Manufacturers Association's (CMA's) adoption of the Responsible Care® initiative—not a slick new promotional campaign but a commitment to continuous improvement in environmental performance. The author highlights components of the program, which is seen as an outgrowth of Total Quality Management.     

An assessment methodology for successional systems. II. Statistical tests and specific examples

This paper presents a dynamic framework for environmental assessment when the system under study is undergoing successional change. Successional differences between sites for which one wishes to detect a difference because of a treatment are essentially confounding factors. We show how successional changes over the study period or resulting from differences in study site plot ages can be factored out by developing a null model of expected behavior over time. The null model for change in state with time is characterized in terms of a stochastic envelope around a nominal trajectory. Specific tests for the detection of trends associated with succession are described and illustrated on example data. It is concluded that the methods developed work particularly well for laboratory microcosm data.     

An assessment methodology for successional systems. I. Null models and the regulatory framework

Standard procedures for evaluating environmental impact involve comparison between before and after conditions or scenarios or between treatment and control site pairs. In many cases, however, endogenous directional change (natural succession) is expected to occur at a significant rate over the period of concern, particularly for manmade systems such as impoundments. Static evaluations do not provide an adequate approach to such problems. A new evaluation frame is proposed. Nominal system behavior over time is characterized by a stochastic envelope around a nominal trajectory. We show that both the state variance and the sampling variance can change over time. In this context, environmental regulations can be framed as constraints, targets, or conformance to ideal trajectories. Statistical tests for determining noncompliance are explored relative to process variance, sample error, and sample size. Criteria are elucidated for choosing properties to monitor, sample size, and sampling interval.     

An evaluation of four key methods for monitoring household waste prevention campaigns in the UK

Household waste prevention in England has been recognised in national strategy as a key component for future sustainable practice. To support the policy agenda, the Department of Environment, Food and Rural Affairs (Defra) in England has funded an extensive programme of fundamental research in the area. The specific research aim reported on here, in this Defra funded project, was to trial and assess methods for monitoring and evaluating approaches detailed in the National Resource and Waste Forum (NRWF)’s Household Waste Prevention Toolkit. The methods that formed the basis for the four research Objectives for the project were: using pilot and control areas (core Objective), tracking waste arisings, measuring specific activities and declared awareness and behaviour surveys. A primary objective of this research was to quantify the direct waste tonnage impacts of implementing a targeted household waste campaign in Dorset County, UK. A key performance indicator chosen for this assessment was the weight of waste collected at the kerbside from households. In an area where a waste prevention campaign is well planned and implemented then reductions in household waste arisings in pilot areas can be in the region of 2% per annum. This method for monitoring can be used, in the hands of an expert project team, to communicate to the public the direct benefits of waste prevention. It was found that there are a wide range of factors that need to be taken into account in the UK, and that these had hitherto been given little prominence, such as careful matching of pilot and control areas – this proved problematical in this research. However, a range of techniques used to support the methods, e.g. doorstepping surveys and focus groups could not show clear attributable waste prevention impacts but their findings could be used to direct new future messages to the public. The most successful and measurable campaign activities that were revealed by evaluation were: mail preference registrations, Home composting and doorstepping. An expert evaluation of all major methods found that no clear preference was revealed as to which were the most useful. None of the methods were judged very poor neither very good, all had major issues about their use. Tracking waste arisings and focus groups were assessed to be the best techniques in terms of input effort to output value. It is likely that waste prevention teams for household waste will need very careful training in the cost-effective use of the NRWF Toolkit before they are competent to apply it to a given place; the issues are more complex than were first thought.     

A design for environment methodology for evaluating materials

Industrial ecology is a new multidisciplinary field of study requiring that economic activity be integrated with, and have minimal impact on, surrounding natural systems. This systems-based approach is beginning to be implemented in private firms through the development of Design for Environment (DFE) methodologies and tools which support the integration of technological and environmental considerations in all economic activities. As part of this development process, a matrix system is proposed by the author by which the environmental and energy costs embedded in materials as used in generic applications may be identified, facilitating environmentally and economically efficient selection of materials. This Material Environmental Evaluation Matrix is supported by checklists which inform the evaluation process. A set of completed matrices for major materials in common applications forms the basis for an Environmentally Efficient Materials Database (EEMD). Once completed, the EEMD would inform consumers, product and process designers, business planners and managers, regulators and government purchasers, public interest groups, and others in their choice of optimal, environmentally and economically efficient, material options.     

An assessment of agricultural sustainability indicators in Bangladesh: review and synthesis

The term ‘indicator’ is often vague and heterogeneous, and its dynamic characteristics make it highly variable over time and space. Based on reviews and synthesis, this study visualizes phenomena and highlights the trend of indicator selection criteria, development methods, validation evaluation strategies for improvement. In contextualization of the intensification of agriculture and climate change, we proposed a set of indicators for assessing agricultural sustainability in Bangladesh based on theoretically proposed and practically applied indicators by researchers. Also, this article raises several issues of indicator system development and presents a summary after due consideration. Finally, we underline multi-stakeholders’ participation in agricultural sustainability assessment.