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From Eco-Efficiency to Eco-Effectiveness [1,2]

Eco-efficiency is a concept that has found large diffusion in managerial practice and can be defined as “the delivery of competitively-priced goods and services that satisfy human needs and bring quality of life, while progressively reducing ecological impacts and resource intensity throughout the life-cycle to a level at least in line with the earth’s carrying capacity” (DeSimone and Popoff, 1997, p. 47). Notwithstanding this broad definition, in the operational practice eco-efficiency has mainly focused on the positive association between an environmentally friendly attitude and increased productivity, product differentiation and brand strengthening. In other words, the debate on eco-efficiency has somehow left behind the question of limits, carrying capacity and effectiveness of environmental strategies, focusing mainly on the “business case”.

This discussion and the corresponding workshop focused on broadening the debate on corporate sustainability, introducing and discussing the concept of eco-effectiveness (Dyllick and Hockerts, 2002) both at the theoretical and practical level. The concepts discussed at previous workshops will be carried forward to successive symposia

Posts in From Eco-Efficiency to Eco-Effectiveness [1,2]:

Bocconi University Symposium Conclusions

Please follow the link below to view a powerpoint presentation on “Moving From Eco-Efficiency to Sustainable Production”, moderated by Maria Csutora and Pietro Bertazzi.

Powerpoint Presentation

Corvinus Symposium powerpoint

Attached you will find the powerpoint containing the conclusions of the Eco-Efficiency workshop from the Corvinus Symposium. 

Click HERE

RIT Symposium Conclusions

Consensus was reached during this workshop that Eco-Efficiency is simply not enough, with regard to “proper” environmental performance. Essentially, the main agreement throughout the course of the workshops was that a move toward a new paradigm was needed; a paradigm in which Eco-effectiveness is more sought after than is Eco-efficiency.

The summary statement for this workshop could be explained as Eco-efficiency being the desire to minimize our footprint (with regard to environmental impacts) as opposed to Eco-effectiveness being the desire to stabilize our footprint.

There was much discussion on the topic of how to bridge the gap between Eco-efficiency and Eco-effectiveness; disruptive innovation was one method that was discussed as a driver for the move toward Eco-effectiveness. Also discussed was the idea of creating incentives for industry to adopt more Eco-effective activities, as opposed to only thinking Eco-efficiently. Improved purchasing decisions and volunteer programs were other suggestions in this regard.

You can view the powerpoint from the symposium HERE.

Symposium Results

I’ve attached the presentation prepared by Stefano Pogutz, Anna Miller and Lynn Daley based on the morning and afternoon session for ”From Eco-Efficiency to Eco-Effectiveness.”  The presentation summarizes the discussion and findings of participants:  Brian Butler, John Morrelli, Lisa Greenwood, Erin Sullivan, Richard Poduska and Joe Sarkis.

 from-eco-efficiency-to-eco-effectiveness.ppt

Eco-Efficiency and Eco-Effectiveness

Eco-efficiency, however measured, results in a net loss to resources and net gain to toxic, unsalable waste.  When the focus is on efficiency, the mind-set is “cradle to grave.”  The focus of eco-effectiveness, on the other hand, is “cradle to cradle” with a mind set that, as William McDonough puts it, waste must equal food.  Design must not just decrease resource use and unsalable waste, it must create products whose waste can be put to use in either the “biological or technological metabolism.”

Why We Need Better Eco-Efficiency Analysis

Realistic Eco-Efficiency Analysis
Why We Need Better Eco-Efficiency Analysis
From Technological Optimism to Realism

by Gjalt Huppes, CML  http://www.itas.fzk.de/tatup/073/hupp07a.htm

Eco-efficiency analysis relates two pillars of sustainability, the economic and the environmental one. There are several options for specifying eco-efficiency, as a partial or more encompassing concept. When using technology specification as the basis for eco-efficiency analysis, there is an inbuilt tendency towards unjustified optimism, as other societal mechanisms detract from the technology potential. A more systematic approach to modelling is required to arrive at a more realistic analysis, both lining the micro level analysis to the macro level sustainability consequences for society and reckoning with the relevant mechanism in society of economic, cultural, institutional and political nature. With more realistic modelling, more realistic requirements on the trade off between economy and environment at a micro level can be formulated. A substantial research programme is required for this purpose, with substantial efforts at standardisation. Work in the EU project CALCAS is addressing such research framing questions.

Sustainability Balanced Scorecard for Eco-Efficiency Analysis

The Sustainability Balanced

Scorecard as a Framework

for Eco-efficiency Analysis

by: Andreas M¨oller and Stefan Schaltegger

 http://www.wbcsd.org/DocRoot/DkiB0YxO9BdRq8NwMMBQ/JIE9-4_Schaltegger.pdf

Summary

To provide valuable support for successful decision-making,

managers need a balanced set of financial and nonfinancial

measures that represent different requirements, strategic

goals, strategies, resources, and capabilities and the causal relationships

between these domains. The balanced scorecard is

such a measurement system. As an open system the balanced

scorecard facilitates the consideration of sustainability issues.

But enhanced balanced scorecards require a new type of data.

This is where eco-efficiency analysis comes into play.

This article discusses the relationship between so-called

sustainability balanced scorecards and eco-efficiency analysis.

Eco-efficiency analysis not only provides a data source for sustainability

balanced scorecards; in the perspective of environmental

information systems it also serves as a link between the

balanced scorecard and corporate environmental accounting

systems so that eco-efficiency as a component of an environmental

information system becomes an adapter with two

interfaces, which are characterized in this article. The main

focus is on the principle of cause and effect, its different forms,

and the implications for the design of appropriate information

system components.

Topic for Discussion

It seems that a lot of this discussion will revolve around these two compound questions:

  • How are eco-efficiency and eco-effectiveness linked and have companies that integrated eco-efficiency in their decision making also improved their eco-effectiveness?
  • How can we measure eco-efficiency and eco-effectiveness and how can we integrate these measures into the decision making process (for example in innovation and design)?

Proposed Objective

Eco-efficiency and Eco-effectiveness are not the same.  The return on eco-efficiency is diminishing.  The focus must shift to eco-effectiveness.  Business and industry will require a framework in which to do so.  This workshop will attempt to develop a framework from which businesses may move to eco-efficiency from eco-effectiveness.

Stefano’s Questions

Stefano e-mailed Elaine and I the following questions.  I just wanted to post them here.

 Proposed questions are as follows:
• Is eco-efficiency enough?
• How are eco-efficiency and eco-effectiveness linked?
• Companies that integrated eco-efficiency in their decision making improved
also their eco-effectiveness (or reduced their ecological footprint)?
• Do we have to elaborate a new framework to favor a more effective balance
between business and the natural environment?

2) The second topic is more practical and relates to environmental measurement
and accounting tools. In other words, a broad argument for discussion is
related to the implementation of eco-efficiency and eco-effectiveness at the
company level to provide support for decision making. Questions are:
• How can we measure eco-efficiency and eco-effectiveness?
• How can we integrate these measures into the decision making process (for
example in innovation and design processes)?