Environmental Key Performance Indicators for Sustainable Evaluation in Automotive Industry: A Focus Group Study

Abstract

Regarding the significant share of the automotive industry in both producing economic value added and employment, this sector is dominated in the industrial development approach. On the other side, different societies have focussed on the emissions, energy consumption and also waste production of road transportation as important risk threatening environmental health. So, the supply side is highly expected to deal with the expectations of stakeholders relating to sustainability concerns and related risks. To evaluate the implementation of environmental policies in the direction of sustainability and respond to the sustainability and environmental concerns of stakeholders, similar organisations need a uniform framework for performance appraisal. The present study aimed to identify, select and validate the environmental key performance indicators for sustainability assessment of the automotive industry to create a framework for selecting the indicators and using them as a uniform method for better comparison of the performance of car companies in the field of environmental sustainability. In this research, key environmental performance indicators are studied in accordance with sustainability evaluation in the vehicle industry and final indicators introduced using SMARTL criteria. The results showed that 41 indicators included in five categories of waste and waste water, soil contaminators and solid waste, carbon production and energy consumption and management are introduced according to ISO14031 model. Evaluating and monitoring these indicators, defined based on the UN Sustainable Development Goals 2030, can both reflect the quantitative improvement in the environmental performance. Additionally, using SMARTL key environmental performance indicators, the organization is able to comprehensively manage the environmental performance in accordance with environmental and sustainable development goals and policy. Using a uniform method for evaluating and monitoring the environmental performance allows us to compare the environmental performance of similar companies in line with sustainable development policies and creates a competition that allows the organisation to always increase its performance in a positive way.