Integrating Environmental Performance Indictors in Balanced Scorecard to Activate the Role of Organization in Sustainable Development

Abstract

Many companies around the the world exploring the concept of sustainable development seeking to integrate their pursuit of profitable growth with the assurance of environmental protection and quality of life for present and future. Scientific and professional organizations attempt to establish a global framework of Environmental Performance Indicators (EPI) in order to develop standardized metrics systems and to evaluate organizations’ environmental performance, which has developed from using traditional models to Balanced Scorecard (BSC) models. Organizations use BSC to integrate their environmental, financial and other performance information to provide stakeholders with a more complete and accurate picture of their performance. The study aim to highlight the expected benefits of integrating the environmental aspects in BSC indicators and its effect on sustainability. The study discusses the importance, characteristic and use of EPI; the effectiveness of EPI and its role in improving decision making and organization strategy; the need for positive EPI to promote sustainable development; and integrating environmental information in BSC models.