The Process Analysis Method of selecting indicators to quantify the sustainability performance of a business operation

This paper describes a method for assessing the degree of sustainability of a business operation, in terms of indicators related to the sustainability impacts of its particular activities. The Process Analysis Method considers the impact on the capital residing in the three domains: the environment, the economy and the domain of human/social capital. It is found, using the Brundtland definition of sustainability, that these impacts can be related to two business perspectives: (1) Resource efficiency, which measures the effectiveness of conversion of natural, financial, human and social capital; (2) Fairness in benefit which describes how fairly the benefits and disbenefits of changes in the three domains are distributed amongst stakeholders.The method requires a complete review of the activities of the business within an appropriately defined system boundary, in order to make an inventory of activities which affect the capital stores of value; those effects are found to relate to the business perspectives. The effects of these activities on stakeholders are identified, and those which are deemed to be significant are characterised by issues: these determine the selection of indicators whose values are given by metrics. The methodology thus enables the development of a comprehensive set of sustainability indicators and metrics for the particular business operation. The set of indicators will be similar for businesses with similar activities, so the methodology facilitates comparison and benchmarking. Further, the value of a particular indicator can be traced back through the analysis to a particular business process, which is especially helpful in guiding remedial action, since cause is linked to effect by the method.     

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.     

Uncertainty-based quantitative assessment of sustainability for higher education institutions

Evaluation of sustainability in various facets of life is gaining increasing importance. Traditionally, different multi-criteria decision-making methods have been used for sustainability assessment. “Sustainability” can be a qualitative concept, and as such several researchers have attempted fuzzy logic for the quantitative assessment of sustainability. This paper outlines a new evaluation model based on fuzzy multi-criteria decision-making. The model is tested for sustainability assessment of higher education institutions (HEIs). It is based on a driving force–pressure–state–exposure–effect–action (DPSEEA) framework and is called uncertainty-based DPSEEA-Sustainability index Model (uD-SiM). The uD-SiM is a causality-based model in which the sustainability index is an outcome of nonlinear impacts of sustainability indicators in different stages of DPSEEA. The percent contribution of driving forces on the sustainability index of HEI is investigated using sensitivity analysis. The study reveals that education in sustainability and global and local research trends are the major driving forces for achieving sustainability in HEI, followed by financial and economic growth rate, social equity, energy requirements rate, and institutional enhancement, in descending order. The results of uD-SiM were found to be more realistic and rational than our earlier proposed approach, D-SiM.     

Using corporate social responsibility benchmarking framework to identify and assess corporate social responsibility trends of real estate companies owning and developing shopping centres

Shopping centres that include retail activities have come in for criticism as to their environmental, architectural and social impacts. However, the sector has been applying corporate social responsibility (CSR) practices. In an attempt to identify the best practices regarding CSR and trends therein we developed a CSR benchmarking of companies from the real estate sector owning and developing shopping centres. Based on information from websites, annual, environmental and sustainability reports, and customer services department’s information, in 2004 and 2010, a comparative CSR benchmarking was performed on 23 real estate companies with shopping centres based in Europe, China, Australia and the USA. The CRS benchmarking framework focused on reported CSR practices and included categories and sub-categories of evaluation in four domains: (1) external results, (2) internal results, (3) management processes and (4) learning and innovation. The framework was inspired by the sustainability balanced scorecard structure. The United Kingdom real estate sector’s companies studied did relatively well when evaluated by the framework used in this study. The highest ranked real estate companies applied sustainable or environmental buildings standards and did show a commitment to transparency and CSR disclosure. The positive evolution of CSR practices in the 23 companies studied in 2004 and 2010 may reflect efforts to improve competitiveness and the reputation of the companies with shopping centres through CSR initiatives.     

A methodology for CSR reporting: assuring a representative diversity of indicators across stakeholders,scales, sites and performance issues

This paper presents a framework called the CSR Deliberation Matrix for the structuring of CSR issue identification, stakeholder dialogues, indicator selection and reporting, with an overarching goal to achieve an appropriate balance between sensitivity to individual situations and the benefits of “generic” indicators applicable to a large spectrum of reporting contexts.We suggest guidelines to (1) define the full spectrum of sustainability concerns and of relevant stakeholder dialogue contexts; (2) mobilise a relevant “data bank” which provides a profile of candidate CSR indicators; (3) obtain a parsimonious selection of indicators in a site-level CSR reporting process through a stakeholder dialogue; and (4) obtain a “representative diversity” of indicators at the interface of site-level and higher-level CSR reporting contexts.     

LCA of environmental and socio-economic impacts related to wood energy production in alpine conditions: Valle di Fiemme (Italy)

An extended Life Cycle Assessment (LCA) is performed for evaluating the impacts of a woody biomass supply chain for heating plants in the alpine region. Three main aspects of sustainability are assessed: greenhouse gas emissions, represented by global warming potential (GWP) impact category, costs and direct employment potential. We investigate a whole tree system (innovative logging system) where the harvest of logging residues is integrated into the harvest of conventional wood products. The case study is performed in Valle di Fiemme in Trentino region (North Italy) and includes theoretical and practical elements. The system boundary is the alpine forest fuel system, from logging operations at the forest stand to combustion of woody biofuels at the heating plant. The functional unit is 1 m³ solid over bark of woody biomass, delivered to the district heating plant in Cavalese (Trento). The relative sustainability of traditional and innovative systems is compared and energy use is estimated. Results show that the overall GWP and costs are about 13 kg CO_2equivalent and 42 euro per functional unit respectively for the innovative system. Along the product supply chain, chipping contributes the greatest share of GWP and energy use, while extraction by yarder has the highest financial costs. The GWP is reduced by 2.3 ton CO_2equivalent when bioenergy substitutes fuel oil and 1.7 ton CO_2equivalent when it substitutes natural gas. The sensitivity analysis illustrates that variations in fuel consumption and hourly rates of costs have a great influence on chipping operation and extraction by cable yarder concerning GWP and financial analysis, respectively. This is confirmed by sensitivity analysis. Better technologies, the use of biofuels along the product supply chain and more efficient systems might reduce these impacts. Replacing the traditional system with the innovative one reduces emissions and costs. A low energy input ratio is required for harvesting logging residues. The direct employment potential is a conflicting aspect and needs further investigations.     

Bio-energy supply chains and stakeholders

What are the management challenges and opportunities of bio-energy chains for both running their business efficiently and effectively and fostering the relationships with most relevant external stakeholders? This question is approached by systematically reviewing papers at the interface of bio-energy and supply chain or logistics issues. The review conducted as content analysis is based on an analytic framework that conceives bio-energy chains between challenges and benefits of bio-energy production with simultaneous internal supply chain management and external stakeholder management needs. Smartly designed and operated bio-energy projects hold promising potentials of contributing to sustainable development by both mitigating climate change and strengthening adaptation capabilities. Our analysis distils specific strategies and success factors for tapping this potential on two levels: On a supply chain level, individually adapted and designed supply chain systems relying on trustful information exchange, cooperation and relational governance safeguard profitability while holding adverse ecological and social impacts of operation down; they allow, for instance, minimising costs and emissions, implementing new technologies, and coping with environmental uncertainties such as crop failures and volatile prices. On a stakeholder level, governments as key actors for designing the future legal framework of bio-energy are primary targets for lobbying activities of bio-energy representatives. Respective arguments may focus on economic development and job generation. By minimising its adverse impacts on society and eco-systems and by communicating these efforts credibly, bio-energy warrants its superiority over fossil energy systems. Involving NGOs and residents in early stages of bio-energy projects via transparent two-way communication considerably increase societal acceptance.     

Corporate social responsibility in the mining industry: Exploring trends in social and environmental disclosure

In recent years, concerns about the sustainability and social responsibility (CSR) of businesses have become an increasingly high profile issue in many countries and industries, none more so than the mining industry. For mining, one outcome of the CSR agenda is the increasing need for individual companies to justify their existence and document their performance through the disclosure of social and environmental information. This paper explores recent trends in the reporting of such impacts and issues in the global mining industry. It offers a detailed review of the development of the media of social and environmental disclosure in the mining industry, and of the factors that drive the development of such disclosure. A temporal analysis of the recent trends in disclosure using a case study of the world's 10 largest mining companies is presented. Whilst there is evidence of increasing sophistication in the development of social and environmental disclosure, there is considerable variation in the maturity of reporting content and styles of these companies. The paper offers a simple classification of reporting companies, from ‘leaders’ to ‘laggards’. Stronger leadership and co-operation from the top reporting companies is necessary to support the laggards of the industry.     

CSR codes and the principal-agent problem in supply chains: four case studies

The benefits of corporate social responsibility (CSR) affect the entire supply chains a firm participates in. However, not every firm is in a position to force the implementation of CSR in its supply chains as some, especially small and medium-sized enterprises (SMEs), lack the necessary power. Chain directors can implement it acting as a principal, whereas the other chain members can act as agents.In the principal-agent framework, two main problems occur due to information asymmetry: adverse selection and moral hazard. This paper examines how a code of conduct (i.e. Social Accountability 8000) can help address the principal-agent problem, for SMEs, between chain directors and partners. The research method involves four case studies on CSR practices as implemented by Italian and Dutch SMEs within their supply chains.     

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.     

Sustainability criteria for bioenergy systems: results from an expert survey

Environmental impacts associated with the use of fossil fuels, rising prices, potential limitations in supply and concerns about regional and national security are driving the development and use of biomass for bioenergy, biofuels and bioproducts. However, the use of biomass does not automatically imply that its production, conversion and use are sustainable. In order to operationalize sustainability assessments of biomass systems, it is crucial to identify critical criteria, but keep their number and measurement at a manageable level. The selection of these criteria can vary depending on individual's expertise, geographical region where they work, and spatial scale they are focused on. No clear consensus has yet emerged on what experts consider as critical indicators of sustainability. Objectives of this paper were to analyze how key experts perceive the 35 sustainability criteria for bioenergy found in emerging sustainability assessment frameworks and to identify levels of agreement and uncertainty. Experts were asked to rate the criteria for attributes of relevance, practicality, reliability, and importance.Perceptions of the importance of the 35 criteria varied among the experts surveyed. Only two criteria, energy balance and greenhouse gas balance, were perceived as critical by more than half of the respondents. Social criteria and locally applied criteria were generally ranked low for all four attributes. Seven of the 12 criteria scored as most important focused on environmental issues, four were social and only one was economic. Of the 12 most important criteria, seven were ranked low in practicality and reliability indicating that mechanisms to assess a number of important criteria need to be developed. The spatial scale the experts worked at and their profession explained most of the differences in importance ranking between experts, while regional focus had minimal effect. Criteria that were ranked low for importance, were characterized by a lack of consensus, suggesting the need for further debate regarding their inclusion in sustainability assessments.Outcomes of the survey provide a foundation for further discussions and development of sustainability assessments for bioenergy systems and may also provide a basis for assessing individual bioenergy projects within their specific geographic, ecological, societal, and technological context and scale.     

Organising corporate social responsibility in international product chains

This article focuses on how companies can efficiently implement corporate social responsibility in international product chains by taking into account the particularities of their supply chain relationships. The way in which companies can organise chain responsibility will depend on both the diversity and the complexity of the product chain, the power of the company in the chain and the level of ambition set. On the basis of these four factors, a step-by-step plan has been developed to offer guidance to companies in choosing their own appropriate way of organising chain responsibility. In developing this plan, use was made of the experiences of 12 companies who participated in the programme entitled ‘CSR in an international context’ organised by CSR Netherlands.     

Transitioning to sustainable production – part II: evaluation of sustainable machining technologies

This paper presents a case-study that highlights the importance of sustainable machining technologies in achieving sustainable development objectives. A technology evaluation was undertaken to understand the likely impacts of the use of technology on sustainability performance measures. The evaluation is more than an experimental method for supporting the design of technology and an instrument for supporting decision-making. It is also a tool for supporting technology policy and for encouraging its adoption and application in industry. More specifically, a sustainability evaluation of cryogenic and high pressure jet-assisted machining in comparison to conventional machining is examined. Sustainability performance measures refer to environmental impact, energy consumption, safety, personal health, waste management, and cost. The case-study refers to the machining of high-temperature Ni-alloy (Inconel 718). It is shown that tooling costs represent the major contribution to the overall production cost, which contradicts previous analyses, and that sustainable machining alternatives offer a cost-effective route to improving economic, environmental, and social performance in comparison to conventional machining.     

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.     

Methodology for the development of a new Sustainable Infrastructure Rating System for Developing Countries (SIRSDEC)

The improvement of infrastructures in developing countries has become a priority for the most advanced economies, which have founded a broad range of international development organizations to undertake infrastructure projects worldwide. Infrastructure is the key driver that can accelerate the balance among the economic, social and environmental aspects forming the Triple Bottom Line (TBL) in these countries. Given the lack of appropriate tools to ensure the achievement of this goal, this paper describes the methodology conceived for the development of a Sustainable Infrastructure Rating System (SIRSDEC) aimed at promoting the design, construction and operation of sustainable infrastructure projects in these geographical areas. SIRSDEC is structured into a hierarchical decision-making tree consisting of three levels of elements (requirements, criteria and indicators) selected to assess infrastructure systems according to sustainability principles. The methodology on which SIRSDEC is based combines the action of two multi-criteria decision-making methods (MCDM) such as the Analytical Hierarchy Process (AHP) and the Integrated Value Model for Sustainable Assessment (MIVES). AHP is proposed to weight the elements forming the decision-making tree after processing the opinions provided by a group of international experts regarding the importance of requirements, criteria and indicators, whilst MIVES is suggested to value infrastructure projects according to their contribution to the TBL. The article emphasizes the added value provided by the combination of AHP and MIVES in the design of an ad-hoc rating system aimed at fostering the implementation of sustainable infrastructure projects in developing countries.     

SAFE—A hierarchical framework for assessing the sustainability of agricultural systems

Sustainable development and the definition of indicators to assess progress towards sustainability have become a high priority in scientific research and on policy agendas. In this paper, we propose a consistent and comprehensive framework of principles, criteria and indicators (PC&I) for sustainability assessment of agricultural systems, referred to as the Sustainability Assessment of Farming and the Environment (SAFE) framework. In addition we formulate consistent and objective approaches for indicator identification and selection. The framework is designed for three spatial levels: the parcel level, the farm level and a higher spatial level that can be the landscape, the region or the state. The SAFE framework is hierarchical as it is composed of principles, criteria, indicators and reference values in a structured way. Principles are related to the multiple functions of the agro-ecosystem, which go clearly beyond the production function alone. The multifunctional character of the agro-ecosystem encompasses the three pillars of sustainability: the environmental, economic and social pillars. Indicators and reference values are the end-products of the framework. They are the operational tools that are used for evaluating the sustainability of the agro-ecosystems. The proposed analytical framework is not intended to find a common solution for sustainability in agriculture as a whole, but to serve as an assessment tool for the identification, the development and the evaluation of agricultural production systems, techniques and policies.     

The Environmental Performance Strategy Map: an integrated LCA approach to support the strategic decision-making process

Life Cycle Assessment (LCA) is a well-known tool for analyzing environmental impacts on a wide perspective with reference to a product system and the related environmental and economic impacts. The need for a novel approach that complements environmental and financial considerations is addressed in this study with the introduction of a new graphical representation: the Environmental Performance Strategy Map. This graphical map allows one to combine the main environmental indicators (footprints) with the additional dimension of cost. The paper defines the Sustainable Environmental Performance Indicator as a single measure for sustainability of a given option. Comparison of different options for strategic decision-making purposes can be enhanced and facilitated by the use of this indicator.     

Informal knowledge processes: the underpinning for sustainability outcomes in EIA?

Environmental Impact Assessment (EIA) was originally tailored for restructuring rules and values regarding environmental protection, through interdisciplinary work. EIA has developed as a tool for decision-making for the implementation of projects which potentially pose significant environmental impacts. This paper reviews the sustainability and interdisciplinarity assumptions inherent in EIA. It illustrates through a case study of a proposed landfill extension in Rio Grande do Sul, Brazil, that these principles can arise more from informal knowledge processes than from legal ones. It can be shown that interdisciplinarity is often misunderstood as multidisciplinarity or simple knowledge clustering, and sustainability has no common definition amongst EIA practitioners, but that there predominates an understanding which delivers weak sustainability, driven primarily by social and economic goals. The conclusion is that EIA cannot achieve the original vision set out in the world's first legislation adopted in 1970 unless a learning-organization approach is taken whereby: the critical role of informal knowledge is recognized; informal knowledge is properly managed by EIA teams to engender a common understanding of sustainable development goals; interdisciplinary and transdisciplinary working practices are adopted.     

Ecosystem services in global sustainability policies

Global sustainability policies, such as the Sustainable Development Goals (SDGs) or the Aichi Targets, aim to ensure sustainable development, including improved human well-being and the conservation of nature. Although not yet explicitly used to evaluate the progress towards sustainable development, the ecosystem service concept implies a direct link between biodiversity and human well-being. This study explores how and which ecosystem services are currently considered in the SDGs and the Aichi Targets. We also identify which information might be already available for monitoring the progress towards their goals by reviewing national ecosystem assessments. This allows the identification of the main knowledge gaps for monitoring progress towards these global sustainability targets.There is a wealth of information on all major ecosystem services categories which is directly relevant for the Aichi Targets and the SDGs. The top 25% most cited ecosystem services across both policy documents are: Natural heritage and diversity, Capture fisheries, Aquaculture, Water purification, Crops, Cultural heritage & diversity and Livestock. Most monitoring information recommended for the global sustainability goals, as well as in the information available from national assessments, is biased towards supply related aspects of ecosystem services flows. In contrast, there is much less information on social behaviour, use, demand and governance measures. Indicators are rarely available for all aspects of a specific ecosystem service.The national statistical bureaus currently in charge of providing observations for reporting on SDGs, could be well placed to address this bias, by integrating ecological observations with socio-economic statistics into socio-ecological indicators for ecosystem services flows. IPBES can potentially address the gaps identified in this paper by improving coverage of the different dimensions of ecosystem services flows.     

International trade in biofuels: an introduction to the special issue

Currently, many countries are establishing goals for substituting biofuels for fossil fuels. These goals usually foresee 5–10% substitution while today's production, in most countries, is far below 2%. Evidently, many countries will seek to meet their ambitious biofuel targets through imports. This global trade in biofuels, which is to some extent already taking place, will have a major impact not only on other commodity markets like vegetable oils or animal fodder but also on the global land use change and on environmental impacts. This special issue focuses on the relation between trading, policy making and sustainability impacts of biofuels. It demonstrates the strong but complex link between biofuels production and the global food market, it unveils policy measures as the main drivers for production and use of biofuels and it analyzes various sustainability indicators and certification schemes for biofuels with respect to minimizing the adverse effects of biofuels while maximizing the benefits of the future use of biofuels.