Evaluations of corporate sustainability indicators based on fuzzy similarity graphs

The paper deals with inconsistencies of composite sustainability indicators and their different subsets (economic, environmental, social, and corporate governance). Corporate sustainability performance is usually highly nonlinear, vague, partially inconsistent and multidimensional. The resulting models are often oversimplified. The key reason is an information shortage which eliminates the unsophisticated applications of classical statistical methods. Numbers are accurate and information intensive. Verbal quantifications are less accurate and therefore not that information intensive. Fuzzy sets and fuzzy reasoning are used to make verbal quantifiers suitable for computer applications. A fuzzy similarity graph is defined. A team of experts identified 17 relevant variables (e.g. Environmental costs, Occupational diseases, Number of complaints received from stakeholders) and 12 company data sets are available. Each company is presented as a fuzzy conditional statement. A set of fuzzy pairwise similarities is generated and used to evaluate five similarity graphs: a Total Graph (based on all 17 variables) and graphs based on relevant specific subsets of variables, Economic, Environmental, Social and Corporate Governance graphs. The topologies of these graphs are significantly different. No prior knowledge of fuzzy reasoning is required.     

Development and application of an integrated sustainability index for small-holder dairy farms in Rajasthan,India

In agrarian economy of developing nations like India, smallholder dairy production is an important enterprise and its sustainability is vital for ensuring livelihood and nutritional security to the masses. Studies on methodological aspects of farm sustainability at micro-level are limited, either confined to a particular dimension of sustainability or based on complex data requirement which is not feasible to obtain in the context of smallholder dairy farms. This study has developed a multi-attribute farm level sustainability assessment method encompassing economic, social and ecological dimensions of sustainability and has applied it to assess the sustainability of dairy farming in north-western part of India. Based on data from 120 dairy farms located in rural area of Jaipur district from the state of Rajasthan, the study computed the composite Sustainable Dairy Farming Index (SDFI). The overall substantiality status of the smallholder dairy farms in the study area was not encouraging, implying that it may not be viable for future generation to take up the enterprise. Among the three dimensions of sustainability, the average scores of ecological dimension were highest followed by the economic and social sustainability scores. Some of the core attributes like feed productivity, management of animal genetic potential and gender equality are particularly weak aspects of the dairy production system in India. The direct relationship of economic sustainability with herd size suggests for farmers with very small herds (one to two) animals, increasing the number of dairy animals to about five to six, would be a good strategy to economize on input costs and generate more marketed surplus of milk.     

Assessing the sustainability of water companies: A synthetic indicator approach

Performance indicators (PIs) are essential in the benchmarking process used to rate and rank water companies. However, a set of individual PIs does not provide a holistic assessment of company performance from multiple perspectives. A multidimensional evaluation of the performance of water companies can be achieved by aggregating the PIs into a synthetic indicator. Although the concept of sustainability involves economic, environmental and social criteria, most of the previous studies have not considered these three dimensions simultaneously. This paper discusses a process of indicator aggregation using two approaches based on multi-criteria decision analysis to evaluate and compare the sustainability of water companies from a holistic perspective. A synthetic indicator embracing economic, environmental and social PIs was computed for a sample of 154 Portuguese water companies. Both methods yielded similar rankings of water company sustainability. The techniques and results presented in this paper may be utilized as a means of improving the benchmarking process in regulated water industries, as well as providing valuable contributions to decision-makers on the most efficient steps for improving the sustainability of urban water services.     

Identification of Key Sustainability Performance Indicators and related assessment methods for the carbon fiber recycling sector

The need for the extensive use of sustainability assessment as a standalone tool to evaluate the environmental, economic and social aspects of an activity be it at project, product, company or region level has resulted in the development of various methods and standards. There are several indicator issues to address each aspect of sustainability and it is not easy for decision makers to understand the result due to the use of multiple indicators. In this regard, the paper aims at the identification and combination of indicators allowing to assess the sustainability which is applicable to a carbon fiber recycling sector. Indicators selection were carried out by performing an extensive literature review on existing publications dealing with the different pillars of sustainability and setting a number of selection criteria to prioritize indicators that are relevant to the sector. For the environmental aspect global warming, acidification and human toxicity seem to be the most relevant. The social-economic aspect can be addressed through considering the resource impact assessment by considering the supply risk due to the geological scarcity of a resource and the potential supply disruption due to geopolitical and other social factors. The finding shows that three indicators have been identified enabling the assessment of the environmental pillar. Then the necessity to use extra resources indicators was shown and justified by the need of providing a shorter timeframe perspective as well as to consider the amount of fiber to be recycled in the future and also to determine the potential benefit provided by the creation of this sector to the resource strategy point of view. This will be made possible by using such method as the criticality assessment that enable the consideration of geological and geopolitical supply risk as well as the characterization of the system dependence to a specific resource.Finally, these results lead to the expression of the need to the development of a novel indicator assessing the criticality of carbon fibers as well as the expression of the necessity for further research on the socio-economic perspectives.     

A PCA-based method for construction of composite sustainability indicators

Purpose

Sustainable manufacturing is practiced globally as a comprehensive strategy for improving the sustainability performance of the manufacturing industry. While sustainability is characterized into such three dimensions as economic, environmental, and social, currently, there is no quantitative method yet to measure the so-called ??sustainability?? in the manufacturing industry. The objective of this research is to develop a comprehensive and effective quantitative method to measure the overall sustainability performance of manufacturing companies.

Methods

In this paper, an integrated methodology is presented for the development of composite sustainability indicators based on principal component analysis (PCA). In developing this integrated approach, both industry and academia surveys are conducted to identify what sustainability indicators are favored by the sustainable manufacturing community. A unique index is then generated to measure the overall sustainability performance of industrial practices. The methodology can be used for benchmarking the overall sustainability performance of various manufacturing companies.

Results

A case study is conducted on a total of 11 global electronic manufacturing companies. The overall sustainability performance of these companies are measured, benchmarked, and ranked. The results showed that PCA is an effective approach for constructing composite sustainability indicators across environmental, economic, and social dimensions.

Conclusions

From this research, it is found that industry and academia have different views on the sustainability measurement, evidenced by different weights put on the same indicator in industry and academia. The case study demonstrated that the methodology presented in this paper is an effective tool for comprehensive measurement of sustainability performance of manufacturing companies. Strengths and weaknesses of each company can be identified. Then, the recommended improvements can be suggested based on the study of each of the individual indicators.     

Development of composite sustainability performance index for steel industry

The steel companies are becoming increasingly aware about the sustainability challenges. In order to become a responsible corporate citizen, the industry has responded to these challenges through adoption of pillars of sustainability. The industry has made the beginning with identification of sustainability indicators. The indicators have been developed specifically for steel industry. Generally, it is quite difficult to evaluate the performance of company on the basis of large number of sustainability indicators. Integration of key sustainability indicators is quite essential for decision-making. Composite indicators are an innovative approach to evaluate sustainable performance. This paper presents a method for development of composite sustainability performance index (CSPI) that addresses the sustainable performance of steel industries along all the three pillars of sustainability—economic, environmental and societal. Organizational governance and technical aspects have also been considered fourth and fifth dimensions of sustainability.The objective of this paper is to introduce sustainability and to present a conceptual decision model, using analytical hierarchy process (AHP) to assist in evaluating the impact of an organization's sustainability performance. AHP has been used to determine the weights at various levels. Sub-indices have been evaluated and aggregated to form CSPI. The effectiveness of the proposed model is evaluated in a case study for a major steel company in India.     

Sustainability Constraints as System Boundaries: An Approach to Making Life-Cycle Management Strategic

Sustainable management of materials and products requires continuous evaluation of numerous complex social, ecological, and economic factors. A number of tools and methods are emerging to support this. One of the most rigorous is life-cycle assessment (LCA). But LCAs often lack a sustainability perspective and bring about difficult trade-offs between specificity and depth, on the one hand, and comprehension and applicability, on the other. This article applies a framework for strategic sustainable development (often referred to as The Natural Step (TNS) framework) based on backcasting from basic principles for sustainability. The aim is to foster a new general approach to the management of materials and products, here termed "strategic life-cycle management". This includes informing the overall analysis with aspects that are relevant to a basic perspective on (1) sustainability, and (2) strategy to arrive at sustainability. The resulting overview is expected to help avoid costly assessments of flows and practices that are not critical from a sustainability and/or strategic perspective and to help identify strategic gaps in knowledge or potential problems that need further assessment. Early experience indicates that the approach can complement some existing tools and concepts by informing them from a sustainability perspective-for example, current product development and LCA tools.     

Generic sustainability assessment themes and the role of context: The case of Danish maize for German biogas

The choice of context-generic or -specific themes and subthemes (goals and objectives) for sustainability assessment implies a number of tradeoffs; for instance, benchmarking and resource efficiency vs. coverage and engagement. Analyses of the potentials and limitations of generic assessment themes and sub-themes within specific contexts may help to develop frameworks that minimise the tradeoffs between generic and specific assessment approaches. The aim of this study was to analyse the effectiveness of generic themes and sub-themes of existing frameworks for covering the key sustainability issues of a specific case study – the case of Danish maize for German biogas. The results indicate that generic frameworks can effectively cover context-specific issues related to the environmental dimension of sustainability. Conversely, generic frameworks can be unable to identify context-specific issues related to social and economic dimensions. This study suggests that the coverage gap of generic themes is mainly an issue of framework incompleteness that can be advanced with additional research. A one-size-fits-all specificity-level for sustainability assessment is not applicable, and the specificity-level should be tailored to the assessment purpose. A certain degree of stakeholder participation is recommended not only in the assessment process, but also during the framework design to support stakeholders' sustainability education and action.     

A new approach for environmental risk assessment

Environmental problems, such as global warming, the limited supply of sustainable energy, the depletion of natural resources, hazardous emissions released into the atmosphere and waste, are increasing global concerns. Therefore, individuals, communities, and businesses need to address environmental protection and sustainability. Environmental impact assessments are needed to identify, mitigate, and control aspects that affect the environment or a company's products, services, or activities. In this study, a general environmental aspect and impact assessment approach, which can be applied to any company that is involved in the production or service sector, is created. An environmental impact pattern that consists of 10 main and 32 sub-categories was formed based on the ISO 14001, environmental studies and field applications. The developed approach was applied to the dyeing units of a manufacturing firm. Sixteen environmental aspects were identified and assessed using the environmental impact template via the environmental failure mode and effect analysis (E-FMEA) method. The developed-approach can be applied to each sector, which will enable us to perform a detailed analysis of the environmental aspects in the environmental impact category. This approach provides a checklist for the environmental impact studies of businesses and has been pioneered as an effective method for company resources to improve their environmental performance.     

Developing an indicator system to foster sustainability in strategic planning in China: A case study of Pudong New Area,Shanghai

This paper reports how the use of a new integrated theoretical framework underlain by the concept of sustainability to establish an indicator system for strategic environmental assessment (SEA) can effectively address the quest for urban sustainability of Chinese cities. The usefulness of the new framework was justified by a trial implementation of the framework in an SEA of development in Pudong New Area, Shanghai, in which the indicator system was capable of providing both retrospective and prospective insights of the environmental challenges created by economic and social development in qualitative and highly legible terms. The study affirms the constructive role of SEA on National Economic and Social Development Planning in both the socio-economic and environmental sustainability and underlines the importance of carefully-crafted indicator systems to promote the SEA practices in China.     

Environmental certification

Environmental certification of companies is a promising tool for steering the economy in a more environmentally sound direction. It can also be put in a chain perspective so that companies which constitute a production-consumption chain will conclude agreements between each other with respect to their environmental performance. A legal basis is formed by the EMS of ISO 14001 and the EMAS directive of the EU. However, apart from procedural aspects, substantive aspects should also be included. The major steering factor consists of the image of a company. This in contrast to product policy, where the major steering factor lies in the purchase behaviour of consumers. The two types of life cycle approaches should complement each other.     

Sustainable transportation systems performance evaluation using fuzzy logic

Sustainability has become an overarching concern for transportation policy and planning around the world. This article presents an approach for urban transport sustainability performance evaluation using fuzzy logic. This article presents a model for transport sustainability performance evaluation. Appropriate transport sustainability indicators were identified based on literature. The model addresses all major dimensions of transport sustainability such as Economic Sustainability, Social Sustainability, Environmental Sustainability and Transportation System Effectiveness. Transport sustainability index has been computed as (5.05, 6.62, 8.12) and weaker transport sustainability attributes were found. Transport sustainability index highlights the question how far toward becoming transport sustainable is an enterprise or region? While, weaker transport sustainability attributes reveals that how can an enterprise or region improve its transport sustainability effectively? Appropriate actions were initiated to improve urban transport sustainability performance. The results indicate that the model is capable of effectively assessing transport sustainability and has practical relevance. An example is also used to illustrate the approach developed. The results obtained using fuzzy approach has been validated with conventional crisp approach. 20 transport sustainability attributes out of 60 are found to be weaker and appropriate actions were derived to improve the weaker attributes.     

Introducing weights to life cycle sustainability assessment—how do decision-makers weight sustainability dimensions?

Purpose

Decisions based on life cycle sustainability assessment (LCSA) pose a multi-criteria decision issue, as impacts on the three different sustainability dimensions have to be considered which themselves are often measured through several indicators. To support decision-making at companies, a method to interpret multi-criteria assessment and emerging trade-offs would be beneficial. This research aims at enabling decision-making within LCSA by introducing weights to the sustainability dimensions.

Methods

To derive weights, 54 decision-makers of different functions at a German automotive company were asked via limit conjoint analysis how they ranked the economic, environmental, and social performance of a vehicle component. Results were evaluated for the entire sample and by functional clusters. Additionally, sustainability respondents, i.e., respondents that dealt with sustainability in their daily business, were contrasted with non-sustainability respondents. As a last step, the impact of outliers was determined. From this analysis, practical implications for ensuring company-optimal decision-making in regard to product sustainability were derived.

Results and discussion

The results showed a large spread in weighting without clear clustering. On average, all sustainability dimensions were considered almost equally important: the economic dimension tallied at 33.5%, the environmental at 35.2%, and the social at 31.2%. Results were robust as adjusting for outliers changed weights on average by less than 10%. Results by function showed low consistency within clusters hinting that weighting was more of a personal than a functional issue. Sustainability respondents weighted the social before the environmental and economic dimension while non-sustainability respondents put the economic before the other two dimensions. Provided that the results of this research could be generalized, the retrieved weighting set was seen as a good way to introduce weights into an operationalized LCSA framework as it represented the quantification of the already existing decision process. Therefore, the acceptance of this weighting set within the respective company was expected to be increased.

Conclusions

It could be shown that conjoint analysis enabled decision-making within LCSA by introducing weights to solve a multi-criteria decision issue. Furthermore, implications for practitioners could be derived to ensure company-optimal decision-making related to product sustainability. Future research should look at expanding the sample size and geographical scope as well as investigating the weighting of indicators within sustainability dimensions and the drivers that influence personal decision-making in regard to weighting sustainability dimensions.

     

Cultural values on CSR patterns and evolution: A study from the biplot representation

Based on institutional and stakeholder theory, this study aims to observe the influence the cultural system has on the degree of responsibility of business behaviour and examines how normative isomorphism influences the Corporate Social Responsibility practices at the country level. We use the Hofstede model because its dimension group highlights the cultural similarities and differences between countries, and we measure CSR along five indicators referring to environmental and social dimensions. This study contributes to the literature by adopting a multi-region approach considering a sample of 6600 observations of 600 publicly-listed companies headquartered in 18 countries in Europe, North America, Japan and Australia, during the period 2004–2014. Given the multidimensional character of the data, we use the exploratory statistical techniques X-STATIS and HJ-biplot, since this allows us to approximate a large group of variables in a low-dimensional space, providing us with a useful visualisation of the structure of the data of the sample relative to the variables. Our main conclusion is that cultural dimensions exert important pressures on firms and their commitment, so, companies located in collectivist societies and, even more, in feminist ones, are characterised by the pursuit of the common good and place greater emphasis on social and environmental issues, thereby showing best CSR practices. Overall, the data does point to more activity in Northern than in Southern Europe, and show that companies respond to what is important in their own countries; for example, the Nordic countries give priority to social policies, while Japanese companies are more committed to the environment. Finally, our results evidence that companies worldwide adopt similar patterns of CSR practices, but their degree of development is strongly determined by the normative institutional characteristics.     

Sustainability of Nile tilapia net-cage culture in a reservoir in a semi-arid region

Among the tools used to measure sustainability in aquaculture, sets of indicators allow a holistic view of a system in its social, environmental, and economic dimensions. Approaches that align indicators with models such as the Drivers-Pressure-State-Impact-Response (DPSIR) framework can improve understanding of this sustainability. This study evaluated the sustainability of cage production systems for Nile tilapia in the Santa Cruz Reservoir, to determine whether a set of indicators used with the DPSIR conceptual model was effective to study the sustainability of the system. The 49 indicators used were calculated from information obtained from questionnaires and from monitoring the production system. Sustainability was also modeled and compared with hypothetical scenarios, with different fish stocking densities. The results indicated that the production system is economically feasible, generating profit and distributing income. However, the income generated benefits few people and is not fixed in the community. Environmentally speaking, the system is highly dependent on inputs, especially the nutrients nitrogen and phosphorus, and energy, as well as increasing sedimentation of nutrients in the reservoir. In the social dimension, the venture employs few workers. The modeling showed that the system is potentially sustainable, and that changes in stocking density decreased this sustainability. In summary, the system showed many sustainable features, whereas some others need to be modified to improve the general sustainability.     

Evaluation of the sustainability of contrasted pig farming systems: breeding programmes

The sustainability of breeding activities in 15 pig farming systems in five European countries was evaluated. One conventional and two differentiated systems per country were studied. The Conventional systems were the standard systems in their countries. The differentiated systems were of three categories: Adapted Conventional with focus on animal welfare, meat quality or environment (five systems); Traditional with local breeds in small-scale production (three systems) and Organic (two systems). Data were collected with a questionnaire from nine breeding organisations providing animals and semen to the studied farming systems and from, on average, five farmers per farming system. The sustainability assessment of breeding activities was performed in four dimensions. The first dimension described whether the market for the product was well defined, and whether the breeding goal reflected the farming system and the farmers’ demands. The second dimension described recording and selection procedures, together with genetic change in traits that were important in the system. The third dimension described genetic variation, both within and between pig breeds. The fourth dimension described the management of the breeding organisation, including communication, transparency, and technical and human resources. The results show substantial differences in the sustainability of breeding activities, both between farming systems within the same category and between different categories of farming systems. The breeding activities are assessed to be more sustainable for conventional systems than for differentiated systems in three of the four dimensions. In most differentiated farming systems, breeding goals are not related to the system, as these systems use the same genetic material as conventional systems. The breeds used in Traditional farming systems are important for genetic biodiversity, but the small scale of these systems renders them vulnerable. It is hoped that, by reflecting on different aspects of sustainability, this study will encourage sustainable developments in pig production.     

Assessing sustainability at farm-level: Lessons learned from a comparison of tools in practice

In the past decades a wide variety of tools have been developed to assess the sustainability performance of farms. Although multiple studies have compared tools on a theoretical basis, little attention has been paid to the comparing tools in practice. This research compared indicator-based sustainability assessment tools to gain insight in practical requirements, procedures and complexity involved in applying sustainability assessment tools. In addition, the relevance of the tools, as perceived by farmers, was evaluated. An overview of 48 indicator-based sustainability assessment tools was developed to, subsequently, select tools that address the environmental, social and economic dimension of sustainability, are issued in a scientific publication and suitable for assessing the sustainability performance of livestock and arable farms in Denmark. Only four tools (RISE, SAFA, PG and IDEA) complied with the selection criteria and were used to assess the sustainability performance of five Danish farms. The tools vary widely in their scoring and aggregation method, time requirement and data input. The farmers perceived RISE as the most relevant tool to gain insight in the sustainability performance of their farm. The findings emphasize the importance of context specificity, user-friendliness, complexity of the tool, language use, and a match between value judgements of tool developers and farmers. Even though RISE was considered as the most relevant tool, the farmers expressed a hesitation to apply the outcomes of the four tools in their decision making and management. Furthermore, they identified limitations in their options to improve their sustainability performance. Additional efforts are needed to support farmers in using the outcomes in their decision making. The outcomes of sustainability assessment tools should therefore be considered as a starting point for discussion, reflection and learning.     

Composite indicator for measuring corporate sustainability

Corporate sustainability performance is a multidimensional concept based on the original idea of sustainable development, replacing the traditional understanding of corporate performance only as capital appreciation for owners. The objective of this paper is to present a model for the measurement of corporate sustainability – Complex Performance Indicator (CPI). CPI integrates the environmental, social, economic and corporate governance performance of the company. CPI contains seventeen key performance indicators which were gradually determined from the basic set of performance indicators using statistical methods. CPI sums up the complex corporate performance into a single value but, at the same time, the set of aggregated sub-indicators of individual performance areas enables a detailed analysis and determination of the impact of various performance areas and factors on the complex corporate performance. The introduction of benchmarking is a crucial element in the entire model, as it enables to interpret the aggregated information and to quantify the performance gap. The results including their visualisation are presented in the case study. The complex assessment of corporate performance helps to uncover the weaknesses of the company that could become a threat and to identify strengths which the company might pursue as an opportunity. The results of such an analysis serve as the point of reference for deciding about the future.     

Monitoring the sustainability and equity of socioeconomic development: A comparison of emergy indices using Macao, Italy and Sweden as examples

The concept of sustainability involves factors related to society, economy, and ecology. The modern context of sustainability also includes a requirement for equitable consumption of materials and energy to sustain the quality of life while still protecting the environment. To evaluate the environmental sustainability of socioeconomic activities, emergy (embodied energy) is an important tool because it can measure real wealth by accounting for both natural and socioeconomic flows using a common set of units. However, different emergy indices provide different insights, and not all are equally suitable for every situation. Using traditional emergy-based indices, an integrated environmental sustainability index (ESI), and two measures of emergy storage, we analyzed emergy flows and related indices for three typical human-influenced ecosystems: those of Macao, Italy, and Sweden. The performance of each ecosystem was compared using several emergy-based indices to assess their levels of sustainable development and demonstrate how different indices provide different insights. Based on the principle that equitability is an essential component of sustainability, we suggest that a positive and low net emergy ratio is desirable, since this means that the system does not capture excessive amounts of resources from external systems and thereby damage its external life-support systems.