Assessing the sustainability performances of industries

Assessing the sustainability performances of industries

November 2007 | Carin Labuschagne, Alan C. Brent and Ron P. G. van Erck
This paper proposes a comprehensive framework to assess the sustainability of operational initiatives in the manufacturing sector, particularly in the South African process industry. The framework addresses the three main dimensions of sustainability: economic, environmental, and social. It also incorporates an institutional sustainability dimension, which is emphasized by the United Nations. The framework is designed to evaluate the sustainability of projects, technologies, and overall company sustainability by considering the impacts of operational initiatives on internal and external stakeholders. Current sustainability frameworks, such as the Global Reporting Initiative (GRI), the United Nations Commission on Sustainable Development Framework, the Sustainability Metrics of the Institution of Chemical Engineers, and the Wuppertal Sustainability Indicators, have been reviewed. These frameworks typically focus on environmental, social, and economic dimensions, but they often lack a strong institutional focus and do not adequately address the needs of the South African process industry. The proposed framework includes six levels, with the first level focusing on corporate responsibility strategy. The second level distinguishes between operational initiatives and societal initiatives. The third level evaluates operational initiatives in terms of the three sustainability dimensions. The fourth level contains the main criteria for each dimension, while the fifth and sixth levels provide detailed sub-criteria for economic, environmental, and social sustainability. The economic sustainability criteria include financial health, economic performance, potential financial benefits, and trading opportunities. The environmental sustainability criteria focus on air, water, land, and mineral and energy resources. The social sustainability criteria include internal human resources, external population, stakeholder participation, and macro-social performance. The framework is appropriate for project life cycle management in the South African process industry, and the criteria are relevant for assessing the sustainability of operational initiatives. The paper also discusses the identification of measurable indicators for the proposed criteria, emphasizing the need for a combination of monetary valuation and Multi-Criteria Decision Analysis (MCDA) techniques to integrate sustainability assessment results into decision-making practices. The framework is intended to provide a comprehensive and practical approach to assessing the sustainability of operational initiatives in the manufacturing sector.This paper proposes a comprehensive framework to assess the sustainability of operational initiatives in the manufacturing sector, particularly in the South African process industry. The framework addresses the three main dimensions of sustainability: economic, environmental, and social. It also incorporates an institutional sustainability dimension, which is emphasized by the United Nations. The framework is designed to evaluate the sustainability of projects, technologies, and overall company sustainability by considering the impacts of operational initiatives on internal and external stakeholders. Current sustainability frameworks, such as the Global Reporting Initiative (GRI), the United Nations Commission on Sustainable Development Framework, the Sustainability Metrics of the Institution of Chemical Engineers, and the Wuppertal Sustainability Indicators, have been reviewed. These frameworks typically focus on environmental, social, and economic dimensions, but they often lack a strong institutional focus and do not adequately address the needs of the South African process industry. The proposed framework includes six levels, with the first level focusing on corporate responsibility strategy. The second level distinguishes between operational initiatives and societal initiatives. The third level evaluates operational initiatives in terms of the three sustainability dimensions. The fourth level contains the main criteria for each dimension, while the fifth and sixth levels provide detailed sub-criteria for economic, environmental, and social sustainability. The economic sustainability criteria include financial health, economic performance, potential financial benefits, and trading opportunities. The environmental sustainability criteria focus on air, water, land, and mineral and energy resources. The social sustainability criteria include internal human resources, external population, stakeholder participation, and macro-social performance. The framework is appropriate for project life cycle management in the South African process industry, and the criteria are relevant for assessing the sustainability of operational initiatives. The paper also discusses the identification of measurable indicators for the proposed criteria, emphasizing the need for a combination of monetary valuation and Multi-Criteria Decision Analysis (MCDA) techniques to integrate sustainability assessment results into decision-making practices. The framework is intended to provide a comprehensive and practical approach to assessing the sustainability of operational initiatives in the manufacturing sector.
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