Measuring Corporate Sustainability

Although sustainable development has been interpreted primarily as a national (or global) goal, there is increasing discussion of the 'sustainable city', the 'sustainable sector' and the 'sustainable business'. In this paper, the notion of corporate sustainability is explored and developed. We argue that one of the keys to understanding corporate sustainability is full cost accounting, that is, valuing pollution in corporate green accounts. Defining and measuring corporate sustainability is more than just an academic concern. Corporate entities are increasingly under pressure to demonstrate how they contribute to the national sustainability goals outlined by government. Hence, this paper seeks to provide practical advice on how businesses might adapt and improve current environmental accounting and reporting practice.     

企业环境管理中政府和企业作用分析

我国的经济发展伴随着日益严重的环境问题。在引起环境问题的诸多因素中,来自企业方面的因素对环境的影响最为深远,因此改善环境首先就需要加强企业的环境管理。在推动企业进行环境管理的各种因素中,既有如政府的管制等外部因素,也有如减少成本、产品差异化等企业自身内部因素。外部因素和内部因素对推动企业环境管理都具有重要作用,但也有其局限性。本文通过政府管制及企业自身因素对驱动企业进行环境管理的作用机制的研究,分析各个驱动因素优缺点,寻求各驱动因素的最佳的组合,促使企业更好地加强环境管理。     

How to reconcile environmental and economic performance to improve corporate sustainability: corporate environmental strategies in the European paper industry

This paper discusses the relationship between environmental and economic performance and the influence of corporate strategies with regard to sustainability and the environment. After formulating a theoretical model, results are reported from an empirical analysis of the European paper manufacturing industry. New data are used to test hypotheses derived from the theoretical model, using environmental performance indices representing different corporate environmental strategy orientations. In particular, an emissions-based index largely reflecting end-of-pipe strategies and an inputs-based index reflecting integrated pollution prevention are distinguished. For the emissions-based index, a predominantly negative relationship between environmental and economic performance is found, whereas for the inputs-based index no significant link is found. This is consistent with the theoretical model, which predicts the possibility of different relationships. The results also show that for firms with pollution prevention-oriented corporate environmental strategies, the relationship between environmental and economic performance is more positive, thus making improvements in corporate sustainability more likely. Based on this last insight, managerial implications of this are discussed with regard to strategy choices, investment decisions and operations management.     

Assessing the sustainability of forest management: An application of multi-criteria decision analysis to community forests in northern Ethiopia

Continuous deterioration of the natural resource base has become a serious threat to both the ecological systems and economic production in Ethiopia. Many of these problems have been attributed directly or indirectly to the rapid dwindling of the country's forest cover which is associated with unsustainable forest use and management. Closing community woodlands from human and livestock intervention to promote natural regeneration of forests has been one of the environmental restoration strategies pursued in the degraded highland areas of northern Ethiopia. However, local pressure to use reforested community lands for economic benefit has become a major threat to forest sustainability.Using locally identified sets of criteria and indicators for sustainable community forest management, this paper applies a multi-criteria decision analysis tool to evaluate forest management problems in the northern province of Tigray, Ethiopia. Three MCA methods – ranking, pair-wise comparison, and scoring – were used in evaluating the sets of criteria and indicators and alternative forest management scenarios.Results from the study indicate a number of noteworthy points: 1) MCA techniques both for identifying local level sustainability criteria and indicators and evaluating management schemes in a participatory decision environment appear to be effective tools to address local resource management problems; 2) Evaluated against the selected sets of criteria and indicators, the current forest management regime in the study area is not on a sustainable path; 3) Acquainting local people with adequate environmental knowledge and raising local awareness about the long-term consequences of environmental degradation ranked first among the set of sustainability criteria; and 4) In order to harmonize both environmental and economic objectives, the present ‘ecological-biased’ forest management regime needs to be substituted by an appropriate holistic scheme that takes into account stakeholders' multiple preferences and priority rankings.     

Towards a Sustainable Urban Environmental Management Approach (SUEMA): Incorporating environmental management with Strategic Environmental Assessment (SEA)

An Environmental Management System (EMS) has been widely in use by many companies to manage the environmental effects of their operations. The process has recently gained ground in being adopted at city and municipal levels as well as in institutions such as universities. However, an EMS that is conducted at corporate level has some deficiencies when it is applied at city level. These deficiencies are in evaluating environmental goals and policies carried out to mainly ensure that the policies meet ISO 14001 standard and corporate requirements and neglect of public participation. Urban areas differ from companies due to their size, complexity and environmental challenges, high rate of growth and the dynamic nature of urban systems. Therefore, they need an urban environmental management approach that will assess the formulated urban environment policies and goals in a strategic method before implementation, including social dimensions such as public participation. Therefore, this paper proposes a modified approach to incorporate an EMS, called the Sustainable Urban Environmental Management Approach (SUEMA). The approach recognizes the above-mentioned deficiencies and benefits from the advantages of sustainability and Strategic Environmental Assessment (SEA) in the formulation and evaluation of policies, plans and programs. SUEMA is developed to ensure more sustainable urban environmental planning and development.     

MEB's university-community partnerships foster new environmental leaders for business

As our society's environmental concerns have grown over the past 20 years, U.S. firms have struggled to find effective and inexpensive ways to meet their mushrooming environmental obligations. Many firms, recognizing the competitive advantages to be won through adroit environmental management, have begun to seek managers trained to deal with these issues. The corporate response has been hobbled by business schools'general failure to train managers to deal with crossfunctional issues, and by a specific failure to address environmental management in their curricula. In this article, the Management Institute for Environment and Business, a program of the World Resources Institute (WRI), describes its innovative University-Community Partnerships (UCP) project to address these shortcomings. Bringing new approaches and new thinking to management curricula, MEB and several like-minded organizations are breathing new life into the old MBA programs.     

Corporate environmental excellence and stewardship: Five critical tasks of top management

One of the most important challenges facing business is shaping the role of senior management in corporate environmental performance. In some leading companies, the CEO or chairman takes the initiative to carefully define his or her role because of a strong personal commitment, a keen grasp of the business incentives, in response to past problems, or because of a combination of these. In other companies, even where corporate policies genuinely support and promote corporate environmental, health, and safety programs, there may still be inaction or reluctance on the part of top management to participate or get involved. This management posture may work for a few more years, but no longer than that—and could quickly become a major detriment to any company's ongoing market success or viability. This article will focus on a strategy for getting top management involved in your company's programs and, where they are already involved, for sharing some insights we have gained from our work with a number of companies where top management has taken a strong role in environmental issues and has established precedence for what can work well.     

Urban sustainability and environmental justice: evaluating the linkages in public planning/policy discourse

Many cities' municipal governments have made some version of “sustainability” an explicit policy goal over the past two decades. Previous research has documented how the operationalisation and conceptualisation of sustainability in urban sustainability plans vary greatly among cities, particularly with respect to environmental justice. This article reports on whether and how large American cities incorporate environmental justice into their urban sustainability indicator projects. Our findings suggest that while there has been an increase in the number of cities incorporating environmental justice elements into sustainability plans since the early 2000s, their conceptualizations and implementations of sustainability remain highly constrained. The paucity of evaluative tools suggests that environmental justice efforts are potentially losing traction in public debate over macro-scale sustainability concerns (e.g. climate change) or the need for regionally competitive environmental amenities (e.g. parks). This paper concludes with suggestions for revising existing sustainability plans to better reflect environmental justice concerns.     

Industrial pollution,spatial stigma and economic decline: the case of Asopos river basin through the lens of local small business owners

This paper explores the notion of environmentally induced spatial stigma through an analysis of data from interviews across public attitudes to pollution within the Asopos river basin in central Greece. The area has a 40 year plus history of legal and illicit industrial waste disposal and public debate on the associated environmental degradation. The study focuses on the perceptions and beliefs of a sector of the community likely to be directly and negatively affected by stigma, that is small business owners in the tourism and hospitality sector. The qualitative analysis explores awareness and viewpoints on environmental degradation and water quality within the local context, implications for the local economy and the individual's own enterprise, views on industrial environmental management as well as corporate responsibility and future prospects for the environmental problems of Asopos. Findings reveal a noticeable variation in views on industrial pollution and ecosystem deterioration among the respondents, but overall a strong environmentally induced stigmatization of the area. They also uncover an information asymmetry and lack of credible commitment by government bodies and industry members in disclosing accurate information, a situation likely to increase speculation and uncertainty within the community. The paper concludes by addressing implications of the findings to policy-making and managerial considerations, along with future research perspectives which aim to increase considerations of sustainability aspects for local development.     

Using triple bottom line metrics and multi-criteria methodology in corporate settings

With the growing importance of environmental sustainability in the corporate sector, businesses are compelled to progress from assessing and benchmarking their environmental impact to making decisions on how to prioritize impact reduction alternatives. Most often, business decisions are driven by financial metrics, but with sustainability improvements becoming a business goal, it is also important to assess metrics from environmental and social spheres; nevertheless, practically and systematically performing such an assessment is challenging. We present an application of a multi-criteria decision analysis (MCDA) method that addresses the aforementioned challenges in a corporate setting. Our case study company – one of the largest inland marine freight carriers in the United States – promotes a business culture focused on financially viable, yet socially and environmentally responsible solutions. Thus, we combine life cycle analysis (LCA), financial calculation methods, and corporate surveys to quantify environmental, economic, and social performance measures, respectively. Multiattribute utility theory is integrated with analytic hierarchy processes (AHPs) and fuzzy analysis to create a carefully designed framework for corporations with diverse groups of stakeholders. With company leadership, implementation is feasible and successful at prioritizing alternatives among diverse stakeholders. The process provides a platform for negotiation and promotes discussions on decision drivers. The use of MCDA methodologies promoted the inclusion of a suite of metrics that aligned with the company's sense of social and environmental responsibility, generating an in-depth analysis of the alternatives that factored in other things besides economics. Return-on-investments (ROI) calculations, the typical approach used in the corporate setting, would have required significantly less time and effort from the company, but the results of our MCDA application indicated that inclusion of triple bottom line metrics delve deeper into stakeholder preferences. Thus, our case study company gained a holistic view of the candidate alternatives, in addition to creating a platform for structured discussions about company goals and priorities.     

Procedural Integration in Support of Environmental Policy Objectives: Implementing Sustainability

Translating sustainability policy goals into concrete action has proven to be a complex challenge for government agencies, municipalities and businesses. Existing planning and decision-making methods, such as Comprehensive Planning, Environmental Impact Assessment and Environmental Management Systems, are being used to address this focus on sustainability. United States Army policy requires the use of these three procedures by installation planners and managers, providing a unique opportunity for innovation. This paper examines the applicability of these procedures for implementing the Army's sustainable operations policy goals, and explores how the current independent and disconnected implementation can be improved through integration. Included in this analysis is a review of organizational barriers to integrated planning and management. The analysis is applicable outside the Army as these three decision-making procedures are used in many contexts, and installation management shares many characteristics with local government land use planning, federal land management, and corporate business operations.     

Industry Response to the Challenge of Sustainability: The Case of the Canadian Nonferrous Mining Sector

/ The paper investigates how the Canadian nonferrous sector is tackling the challenge of sustainable development. Although there is no consensus as to what sustainable development means in practice for management in the sector, at least three dimensions must be taken into account: (1) metals are recyclable, the availability of this resource is not a concern for the foreseeable future; (2) the need to minimize environmental impacts of metals exploration, extraction, transformation, consumption, and recycling; and (3) production activities should not be socially or culturally disruptive. The nonferrous mining industry faces several environmental problems. Some of the most significant are acid mine drainage, sulfur emissions, recycling, and metals toxicity. The industry has developed a number of responses to address these specific concerns as well as other more general challenges. Six strategies are described and analyzed: (1) research and development, (2) an effort of consensus building among stakeholders known as the Whitehorse Mining Initiative, (3) international networking, (4) active involvement in the development of environmental management standards, (5) management reorganization and (6) voluntary agreements. The importance of external factors in the shaping of corporate environmental management practices is discussed, in particular the role of government. Progress has been achieved in three areas: (1) managerial practices and organization, (2) reducing the impacts of ongoing operations and (3) minimizing future liabilities, but two significant fields of conflict remain, namely mining in wilderness areas and projects on aboriginal lands.KEY WORDS: Canada; Environmental management; Minerals industry; Nonferrous metals; Sustainable development; Whitehorse Mining Initiative     

Model for sustainability implementation and measurement in construction sites

Sustainable practices at construction sites should be considered from the start of the project, meaning during the design phase. A model for the implementation of sustainability at a site is an important management tool, and its adoption can indicate good practices and propose an assessment of local conditions. Thus, the main contribution of this article is to propose a practical model to evaluate the level of implementation of sustainable practices at construction sites. The model was based on sustainability certifications and validated at six construction sites in Brazil. The results indicate that construction companies that possess environmental certifications have better levels of implementation of good practices at their work sites. However, it was noted that it is not necessary for a company to obtain an environmental certification; rather, it is necessary for sustainability strategies to become corporate culture.     

Environmental management: What ISO 14000 brings to the table

The field of environmental management has evolved from its beginnings as a regulation-based, compliance-driven, “command and control” regime into a continuous improvement, voluntary, environmental stewardship process aspiring to protection levels beyond those required by regulations. This change in environmental management philosophies prevalent at many regulated corporations, both in the United States and abroad, has provided a fertile ground for the International Organization for Standardization (ISO) in developing environmental management standards that address these corporate aspirations. This task has moved closer to fruition within the ISO through its Technical Committee (TC) 207 on Environmental Management. This article provides background on the environmental management system standards, ISO/TC 207's committees' organization, and influencing factors helping to shape these standards. Equally important, this article focuses on what the standards will mean to the regulated industries in the way business is conducted.     

Corporate environmental management study shows shift from compliance to strategy

The Abt study of forty-one mostly Fortune 200 nonservice firms forms a new picture of environmental management. We present data indicating that environmental management is becoming central to corporate strategy and is being managed as an arena of competition rather than as a compliance-driven function. We look at environmental management's new role through four lenses: its relationship to strategic planning; its evolving management structures that show environment increasingly integrated into the main functions of the business; innovation in corporate environmental investments reflecting new drivers beyond compliance; and new management systems and measures of firm-wide performance that demonstrate that environment is being seen increasingly as an arena of competitive concern. We argue that much of the change is driven by three realities. First, as customers integrate environmental values into their conceptions of product quality, they are buying more products with identifiably environmental attributes. This change translates environmental management, historically a cost center, into a potential source of sales revenue, a change which cannot be underestimated. Second, recent life-threatening damage to the global ecosystem and atmosphere reframes environmental management. This moves firms toward a systemic and global approach matched to the globalization of competitive and market concerns, and it places environmental management in the strategic sphere. And third, pollution prevention in its cross-fertilization with total quality management is driving firms to focus on managing environment as an integral part of product management, and is helping them to reassess environmental performance as a contributor to productivity and innovation.     

Metabolisms of injustice: municipal solid-waste management and environmental equity in Barcelona's Metropolitan Region

Environmental justice studies that focus on the management of municipal solid waste (MSW) typically examine the unequal distribution of associated health and environmental risks in minority social groups and the political processes that generate these inequalities. With the aim to complement current views on the field, in this work, we explore whether there is an issue of environmental justice in municipal systems' grade of self-sufficiency in treating the MSW that they generate and in their effort to close their material cycles. The methodology used is based on the concept of urban metabolism and is applied to 12 coastal municipalities of Barcelona's Metropolitan Region in Spain. The metabolism of the MSW flows of each system is analysed to examine (i) the system's efficiency to close its MSW cycles, corresponding to an indicator of environmental sustainability, and (ii) the MSW export and import flows, as an indicator of social sustainability. The results demonstrate a positive correlation between socioeconomic status and the externalisation of MSW treatment-related hazards. The proposed indicator proves to be an excellent tool for the evaluation of both the environmental and social performance of a system considering MSW management.     

Questions and answers. TQEM performance indicators—how do you measure up?

I have seen a number of corporations accept the philosophy of TQEM and start the process of total quality environmental management with great enthusiasm. I believe that many organizations are attracted because TQM principles demand measurements of success and results that are definable for the environment. It reduces the emotionalism that frequently tends to surround environmental issues. Emotionalism has perhaps been the bane and boon of efforts by corporations and advocacy groups to incorporate environmental issues into the day-to-day functions of organizations. Abt Associates, a well-known research-based consulting firm, recently completed a study of U.S. Fortune 250 firms' environmental management programs. Abt found evidence that environmental performance is a competitive issue. Benchmarking is hotly pursued to develop firm-wide indices of performance. One third of the benchmarking is against competition, another third is against worldwide firms. There is a race to develop “Best in Class” standards now. E2M and Abt Associates have combined resources to study corporate Canada's environmental management programs and compare these with those of the United States. This research will help companies benchmark activities and will build a strong North American data base. Unfortunately it will not be ready in time to answer TQEM's question for this issue. (The study results will be released to participating companies in Fall 1992.)     

Green tenants: practicing a sustainability ethics for the rental housing sector

The shift towards social, government and corporate ethics which value environmental sustainability has also embraced householders in a plethora of educational guides, policies, regulations and consumer information about green home improvements, purchasing choices and household practices. In this paper, we make the claim that the rental housing sector, and in particular the private rental sector, has yet to participate, structurally, culturally and materially, in this shift to an ethics of sustainability. We argue, however, that even on such otherwise arid ground, an alternative ethic is developing, a sustainability ethic practiced by green tenants whose activities inside and outside their homes go beyond the considerable material constraints of their dwellings and incomes, and beyond the purely transactional utility of the rental contract. These activities, relational, interconnected and resilient, offer both glimpses of a greening rental housing sector, and a clearer picture of the areas where work remains to be done. Based on a research study, we conducted of the rental sector in regional Australia, and in particular of the everyday sustainability practices of tenants, we suggest that these activities are a practice-based form of care for the world, in many ways similar to Maria Puig de la Bellacasa's practice-based, human-decentred ethics which she suggests is exemplified in the permaculture movement. The stories of the tenants we interviewed for our study also point the way to other changes which are needed to enable a practice-based sustainability ethic to flourish across the rental housing sector as a whole.     

Sustainable development in the mining industry: clarifying the corporate perspective

This paper examines sustainable development in the corporate mining context, and provides some guidelines for mining companies seeking to operate more sustainably. There is now a burgeoning literature that examines sustainable development in the context of minerals and mining, most of which is concerned with sustainability at global and national scales. What is often challenging to ascertain, however, from these numerous perspectives on sustainable mineral extraction, minerals and metals recycling, environmental management, and social performance, is how sustainable development applies to mining companies themselves, and what steps a mine must take in order to improve the sustainability of operations. Since mining processes have the potential to impact a diverse group of environmental entities, and are of interest to a wide range of stakeholder groups, there is ample opportunity for the industry to operate more sustainably. Specifically, with improved planning, implementation of sound environmental management tools and cleaner technologies, extended social responsibility to stakeholder groups, the formation of sustainability partnerships, and improved training, a mine can improve performance in both the environmental and socioeconomic arenas, and thus contribute enormously to sustainable development at the mine level.     

PROFILE: Integrating Sustainability and Environmental Impact Assessment

/ Environmental impact assessment (EIA) has been identified as an important instrument for facilitating sustainability. However, to do so requires the integration of sustainability into EIA theory and practice. The sustainability concept is a valid and important environmental management perspective. However, many issues and obstacles need to be addressed further if the concept is to be translated into practical strategies. Sustainability can potentially infuse EIA with a clearer sense of direction, an ethical foundation, a mechanism for establishing priorities and assessing choices, and a means of linking EIA to other environmental management instruments. Conceptually, EIA and sustainability can be integrated, but frameworks should be refined, adpated to context, and linked to related initiatives. Sustainability should be explicitly incorporated into EIA legislation, guidelines, and institutional arrangements. An experimental approach to testing, assessing, and sharing experiences is suggested.A framework is first presented that defines and characterizes the sustainability concept. A further framework is then described for integrating sustainability into EIA at the conceptual level. The integration of sustainability and EIA at the regulatory level is next addressed through an overview of sustainability initiatives in EIA requirements in Canada. The Canadian examples include many promising initiatives but these and other experiences will need to be monitored, shared, and integrated into comprehensive environmental management strategies. Finally, means of incorporating sustainability into each activity in the EIA planning process are identified.KEY WORDS: Sustainability; Environmental impact assessment