Designing metrics that fit: Rethinking corporate environmental performance measurement systems

If you don't measure it, you can't manage it. Over the past decade, many companies have recognized this need to track environmental performance. Failure to plan metrics systems to fit organizational needs, work flows, and culture has left many companies with costly and ineffective environmental performance measurement systems. This article presents numerous practical steps for designing effective metrics systems which avoid common pitfalls.     

A formal model for consensus and negotiation in environmental management

Environmental management decisions typically lie at the interface of science and public policy. Consequently, these decisions involve a number of stakeholders with competing agendas and vested interests in the ultimate decision. In such cases, it is appropriate to adopt formal methods for consensus building to ensure transparent and repeatable decisions. In this paper, we use an environmental management case study to demonstrate the utility of a mathematical consensus convergence model in aggregating values (or weights) across groups. Consensus models are applicable when all parties agree to negotiate in order to resolve conflict. The advantage of this method is that it does not require that all members of the group reach agreement, often an impossible task in group decision making. Instead, it uses philosophical foundations in consensus building to aggregate group members' values in a way that guarantees convergence towards a single consensual value that summarizes the group position. We highlight current problems with ad hoc consensus and negotiation methods, provide justification for the adoption of formal consensus convergence models and compare the consensus convergence model with currently used methods for aggregating values across a group in a decision making context. The model provides a simple and transparent decision support tool for group decision making that is straightforward to implement.     

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.     

Customer-driven environmental information management systems

The most successful corporate environmental programs regard environmental compliance as an opportunity to improve productivity and profits and seek to integrate environmental information management systems (EIMS) into line information functions. Integrated EIMS should provide timely, accurate data to support all three types of environmental management responsibilities: results and comparison reports for source management; material and waste transaction and emission reports for materials management; and compliance, summary, exception, and trend data for risk managers at every level.     

Self-organizing systems and environmental management

The characteristics of self-organizing systems are described and their implications for environmental management are discussed. It is concluded that the aim of management should be to enhance the capacity of the system for self-management, with active intervention being used only to steer it away from large discontinuities. Environmental managers must view ecosystems and themselves as parts of a larger sociobiophysical system, cultivate the capacity of environmental systems for self-management, and learn to live with change and uncertainty. Practical consequences of this approach for plans, policies, programs, and institutions are discussed.     

Resilience metrics for cyber systems

As federal agencies and businesses rely more on cyber infrastructure, they are increasingly vulnerable to cyber attacks that can cause damages disproportionate to the sophistication and cost to launch the attack. In response, regulatory authorities call for focusing attention on enhancing infrastructure resilience. For example, in the USA, President Obama issued an Executive Order and policy directives focusing on improving the resilience and security of cyber infrastructure to a wide range of cyber threats. Despite the national and international importance, resilience metrics to inform management decisions are still in the early stages of development. We apply the resilience matrix framework developed by Linkov et al. (Environ Sci Technol 47:10108–10110, 2013) to develop and organize effective resilience metrics for cyber systems. These metrics link national policy goals to specific system measures, such that resource allocation decisions can be translated into actionable interventions and investments. In this paper, a number of metrics have been identified and assessed using quantitative and qualitative measures found in the literature. We have proposed a generic approach and could integrate actual data, technical judgment, and literature-based measures to assess system resilience across physical, information, cognitive, and social domains.     

Environmental management information systems: New tools for measuring performance

Successful implementation of environmental management information systems (EMIS) has become essential to the success of total quality environmental management (TQEM) programs. Effective TQEM programs will be early indicators of which companies survive and thrive in today's competitive business environment. Highly competitive industries such as chemicals, electronics, and oil and gas are becoming very effective in cooperating to develop metrics, models, and tools that are based on business processes rather than regulatory edicts. Now electric power companies, newly exposed to market competition, are starting to develop and implement these metrics, standards, and tools. That industry provides a model for joining TQEM and EMIS.     

LCA: A decision support tool for environmental assessment of MSW management systems

Life cycle assessment (LCA) can be successfully applied to municipal solid waste (MSW) management systems to identify the overall environmental burdens and to assess the potential environmental impacts. In this study, two methods used for current MSW management in Phuket, a province of Thailand, landfilling (without energy recovery) and incineration (with energy recovery), are compared from both energy consumption and greenhouse gas emission points of view. The comparisons are based on a direct activity consideration and also a life cycle perspective. In both cases as well as for both parameters considered, incineration was found to be superior to landfilling. However, the performance of incineration was much better when a life cycle perspective was used. Also, landfilling reversed to be superior to incineration when methane recovery and electricity production were introduced. This study reveals that a complete picture of the environmental performance of MSW management systems is provided by using a life cycle perspective.     

Flexible interval mixed-integer bi-infinite programming for environmental systems management under uncertainty

A number of inexact programming methods have been developed for municipal solid waste management under uncertainty. However, most of them do not allow the parameters in the objective and constraints of a programming problem to be functional intervals (i.e., the lower and upper bounds of the intervals are functions of impact factors). In this study, a flexible interval mixed-integer bi-infinite programming (FIMIBIP) method is developed in response to the above concern. A case study is also conducted; the solutions are then compared with those obtained from interval mixed-integer bi-infinite programming (IMIBIP) and fuzzy interval mixed-integer programming (FIMIP) methods. It is indicated that the solutions through FIMIBIP can provide decision support for cost-effectively diverting municipal solid waste, and for sizing, timing and siting the facilities’ expansion during the entire planning horizon. These schemes are more flexible than those identified through IMIBIP since the tolerance intervals are introduced to measure the level of constraints satisfaction. The FIMIBIP schemes may also be robust since the solutions are “globally-optimal” under all scenarios caused by the fluctuation of gas/energy prices, while the conventional ones are merely “locally-optimal” under a certain scenario.     

Evaluating management systems as part of environmental audits

Evaluating management systems is a crucial component of any environmental audit. Evolving regulations and directives acknowledge this importance. Remedying management deficiencies can result in long-term, lasting improvements in environmental compliance with external requirements and internal policies. This article presents ideas and examples from leading companies on how environmental audits can be designed to enhance TQEM systems.     

Case study: Sonoco's materials reclamation improves environmental performance through quality-based management

Multinational corporations are facing increasing pressures and finding stronger incentives to integrate environmental management into their overall business strategies. National and local environmental regulations are becoming more stringent in Europe, Japan, East and Southeast Asia, Latin America, and many developing countries, and international voluntary standards of environmental management are being endorsed by a growing number of governments. Multinational firms are embracing these standards not only to assure the public of their concern for environmental protection, but also to enhance their competitiveness in international markets. The British Standard 7750, the European Eco-Management and Audit Scheme (EMAS), and the ISO 14000 series are setting new guidelines for effective corporate environmental management. Beyond complying with local and national laws, corporations now have wider latitude in how they adapt their business practices to these emerging environmental management standards. In order to capitalize on that creative latitude, companies must have corporate cultures and internal management systems that allow them to respond quickly and effectively to changing environmental requirements. Exemplary corporate environmental performance is usually related to strong and progressive leadership, a culture that recognizes the importance of environmental protection, and the willingness to operate by quality-based management principles. This article describes how one international corporation, Sonoco, in responding successfully to changing environmental pressures to reclaim and recycle its products in the wake of the solid waste crisis in the United States and more stringent environmental regulations in Europe, used its management competencies and corporate culture to turn what could have been serious barriers to expansion of its core businesses into new opportunities. By adopting a bold materials reclamation program, Sonoco was able to overcome potential limitations on its operations in the United States and abroad and to develop new business segments that benefited the company and the environment.     

Life cycle indicators for monitoring the environmental performance of European waste management

As widely recognised by EU legislation, Life Cycle Thinking (LCT) is a viable approach to support sound waste management choices. In this context, the Institute for Environment and Sustainability (IES) of the European Commission Joint Research Centre (JRC) has lead the development of macro-level, life cycle based waste management indicators to quantify and monitor the potential environmental impacts, benefits, and improvements associated with the management of a number of selected waste streams generated and treated in Europe.The waste management indicators developed make use of a combination of macro statistical waste management data combined with emissions/resource life cycle data for the different elements of the waste treatment chain. Indicators were initially calculated for the entire European Union (EU-27) and for Germany, covering several waste streams and a broad range of environmental impact categories.An indicator developed for a given waste stream captures the potential environmental impact associated with the generation and management of that waste stream. The entire waste management chain is considered, i.e. from generation to final treatment/disposal. Therefore, system boundaries for the selected waste streams include also the treatment or recycling of secondary waste (e.g. bottom ash from the incineration of household waste), and secondary products (e.g. recovered paper), as well as energy recovery.The experiences from the development of these life cycle based waste management indicators suggest that more detailed and quality-assured waste statistics are needed, especially covering the many different treatment operations and options. Also, it would be beneficial if waste statistics had a higher disaggregation level of waste categories, as well as more detailed information about waste composition. A further development of the indicators should include an increased number of waste streams, as well as calculation of the results for all Member States.     

Expanding the benefits of environmental management systems through DFE

Industry's role in environmental protection is changing and growing. Increasing evidence shows that a corporation's understanding and response to environmental issues and concerns can have strategically important consequences for some kinds of businesses.¹ Focusing on concepts of prevention, industry has developed and struggled with a number of environmental approaches, all of which attempt to link the environment with common business practice. Industry has followed and in some cases embraced concepts and approaches like sustainable development, eco-efficiency, green manufacturing, pollution prevention, and extended product responsibility. A particularly timely and promising strategy to reduce the environmental impact of both manufacturing and product use while enhancing business success is the integration of environmental management systems (EMS) with design for the environment (DFE) efforts. A desirable relationship can and should exist between DFE and EMS. This relationship has not been well understood, but is crucial to fulfill the promise of each. In application, the institutionalization of DFE in an organization is difficult and tenuous at best. Some authors suggest that management issues block the implementation of DFE.² Others say that DFE has not been institutionalized to the extent that pollution prevention has.³ This article suggests that through an explicit connection between an EMS and DFE, DFE can extend the promise of EMS to reduce industry's environmental impact and produce business success, and it can do so in an ongoing way. The authors will show the importance of an EMS/DFE linkage, suggest company types that might benefit from investigating these approaches, and then review a series of DFE tool types.     

The limitations of environmental management systems in Australian agriculture

The efficacy of government-supported programs to encourage improved management of land and water systems associated with agricultural land in Australia has been mixed. The broad approach of Australian governments is reviewed briefly. Evidence is presented from case assessments of a program to promote adoption of environmental management systems (EMSs) to improve environmental outcomes from agricultural practices. EMSs are systems implemented to manage the environmental impacts and ameliorate environmental risk associated with business activity. Data are presented on reported EMS activity and experience of four selected groups of farmers in Victoria, south-eastern Australia, representing broad-acre cropping, beef and dairy farming. The pro-environmental behaviours of farmers were mediated through voluntary adoption of government and industry sponsored EMSs, often with financial incentives and other support. Findings from the study were that adoption of EMS practices with sufficient public benefits is unlikely to occur at sufficient scale for significant environmental impact. Farmers more readily adopted practices which were financially beneficial than those which had a positive environmental impact. Although the focus on voluntary market-based instrument (MBI) type programs is popular in western countries, enforcing regulation is an important, but usually politically unpopular, component of land use policy. The comparative advantage of EMSs differed for the industries studied, but overall there were insufficient market drivers for widespread EMS adoption in Australia. Environmental outcomes could be more effectively achieved by directly funding land management practices which have highest public net benefits. Having a clear and unambiguous management objective for a particular land management policy is more likely to achieve outcomes than having multiple objectives as occurs in a number of international programs currently.