Environmental performance evaluation — a tool for industrial improvement

Abstract

This paper 1 This paper is part of the Norwegian School of Management's (BI's) project on eco-efficiency, funded by the Norwegian Research Council. 1 brings into focus central aspects related to the construction and use of environmental performance indicators (EPIs) to be used for environmental performance evaluation in industrial companies. EPIs may be used on a macro level by external stakeholders 2 Definitions: Internal stakeholder: e.g. management, administrative personnel, process operators, labour union representatives etc. External stakeholder: e.g. authorities, finance institutions, insurance companies, customers, Non Government Organisations. 2 for regulatory, control, influence and risk minimisation purposes. They may also be used on a micro level inside the company for goalsetting, control and surveillance of product performance and performance of manufacturing and administrative processes, as well as for benchmarking purposes by comparing own performance vs competitors' performance or vs branch average process and product performance. To be successful, it is suggested that environmental performance evaluation and management in companies is based on a life cycle perspective, higher than average environmental ambitions and an expanded view of company responsibility and influence on all phases with major environmental impacts along the product lifecycle. Environmental impacts with both local, regional and global effects should be considered. Indicator categories for product life cycle performance, environmental performance of manufacturing operations and environmental condition are suggested. Guides for the selection of essential environmental end-effect aspects and sub-categories for the two former types of indicators have been developed. It is pointed out that both external and internal stakeholder demands for environmental information may be satisfied through EPIs, but that indicator formats may vary according to the requirements of the individual stakeholder. Further, it is suggested that a thorough analysis of stakeholder information requirements is carried out before relevant EPIs are constructed. Promoted viewpoints and conclusions are based on a literature review and on a research project (The Research Council of Norway Research project EMS 30506. Integration of environmental issues into company planning process. Oslo, Norway, 1996).