Combined use of Data Envelopment Analysis and Life Cycle Assessment for operational and environmental benchmarking in the service sector: A case study of grocery stores

Abstract

Ensuring sustainable production patterns doing more and better with less is a key sustainable development goal. In this sense, the joint use of Life Cycle Assessment and Data Envelopment Analysis (i.e., the LCA+DEA methodology) arises as a quantitative tool for the eco-efficiency assessment of multiple similar entities. To date, the LCA+DEA methodology has been widely applied to case studies within the primary and secondary sectors. However, the applicability of this combined methodology to case studies within the tertiary (service) sector is still unexplored, which constitutes a current knowledge gap in this field. This work contributes to filling this gap by benchmarking the operational and environmental performance of a sample of 30 groceries located in Spain. All the evaluated groceries were found to involve relative efficiency scores above 0.60, with one third of the groceries deemed fully efficient. Average reductions of 3–26% in the consumption of operational inputs were calculated, leading to average reductions of 9% in the carbon footprint and 10% in the energy footprint. Furthermore, economic savings of up to 3% of the annual turnover were estimated. These results were further enriched through the application of a super-efficiency DEA model for a refined identification of the best-performers, as well as through the novel use of a specific model for the gradual operational and environmental benchmarking of the sample. Overall, a high applicability of the LCA+DEA methodology for eco-efficiency assessment within the service sector is concluded, facilitating the identification and quantification of sustainable operational patterns.