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Business environmental performance measurement

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  • Peter James

Abstract

Organisations face increasing demands to measure their environmental performance. This is necessary in order to achieve sustainable development to reassure financial stakeholders that their investments are not at risk, to satisfy the demands of regulators and other non‐financial stakeholders and to provide information for customers and employees. Measures can be grouped into ten generic categories ‐ impact, risk, emissions /waste, input, resource, efficiency, customer, financial, normalised and aggregate. At least six different approaches to using measures can be identified ‐ production, auditing, ecological, accounting, economic and quality. Although there has been some limited cross‐fertilisation, in most cases they have developed in isolation from each other and have had different drivers, measurement focii and metrics. In order to achieve the comparison, integration and business relevance which is routine in financial performance measurement, a seventh approach ‐ that of strategic environment‐related performance measurement ‐ is both needed and beginning to develop. The long term challenge is to stretch measurement systems to include the sustainability of business activities (through impact measures) and the competitive advantage they are creating (through customer and financial measures). A ‘balanced scorecard’ of measures is essential too, as is clear identification of the customers of the measures. The comparison which is facilitated by standardised measurement is also a powerful spur to continuous improvement of environmental performance.

Suggested Citation

  • Peter James, 1994. "Business environmental performance measurement," Business Strategy and the Environment, Wiley Blackwell, vol. 3(2), pages 59-67.
    • Handle: RePEc:bla:bstrat:v:3:y:1994:i:2:p:59-67
    DOI: 10.1002/bse.3280030208
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    Cited by:

    1. Francisco Ascui & Theodor F. Cojoianu, 2019. "Implementing natural capital credit risk assessment in agricultural lending," Business Strategy and the Environment, Wiley Blackwell, vol. 28(6), pages 1234-1249, September.
    2. Paolo Esposito & Spiridione Lucio Dicorato, 2020. "Sustainable Development, Governance and Performance Measurement in Public Private Partnerships (PPPs): A Methodological Proposal," Sustainability, MDPI, vol. 12(14), pages 1-25, July.
    3. Fumin Deng & Yanan Jin & Meng Ye & Shuangyi Zheng, 2019. "New Fixed Assets Investment Project Environmental Performance and Influencing Factors—An Empirical Analysis in China’s Optics Valley," IJERPH, MDPI, vol. 16(24), pages 1-21, December.
    4. Asit Bhattacharyya & Lorne Cummings, 2015. "Measuring Corporate Environmental Performance – Stakeholder Engagement Evaluation," Business Strategy and the Environment, Wiley Blackwell, vol. 24(5), pages 309-325, July.
    5. Banerjee, Subhabrata Bobby, 2002. "Corporate environmentalism: the construct and its measurement," Journal of Business Research, Elsevier, vol. 55(3), pages 177-191, March.
    6. Shuangyu Xie & Kohji Hayase, 2007. "Corporate environmental performance evaluation: a measurement model and a new concept," Business Strategy and the Environment, Wiley Blackwell, vol. 16(2), pages 148-168, February.
    7. Rick Edgeman & Jacob Eskildsen, 2014. "Modeling and Assessing Sustainable Enterprise Excellence," Business Strategy and the Environment, Wiley Blackwell, vol. 23(3), pages 173-187, March.
    8. Wolfgang Schultze & Ramona Trommer, 2012. "The concept of environmental performance and its measurement in empirical studies," Metrika: International Journal for Theoretical and Applied Statistics, Springer, vol. 22(4), pages 375-412, January.
    9. Ferdaws Ezzi & Mohamed Ali Azouzi & Anis Jarboui, 2015. "Environmental performance indicators of Tunisian companies: Analysis via the decision tree," Asian Journal of Empirical Research, Asian Economic and Social Society, vol. 5(8), pages 114-127, August.
    10. Claudia Poser & Edeltraud Guenther & Marc Orlitzky, 2012. "Shades of green: using computer-aided qualitative data analysis to explore different aspects of corporate environmental performance," Metrika: International Journal for Theoretical and Applied Statistics, Springer, vol. 22(4), pages 413-450, January.
    11. Cîrstea Ştefan-Dragoş, 2013. "Ethical Aspects Of Environmental Management," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(1), pages 1443-1451, July.
    12. Daniel Tyteca & Jérôme Carlens & Frans Berkhout & Julia Hertin & Walter Wehrmeyer & Marcus Wagner, 2002. "Corporate environmental performance evaluation: evidence from the MEPI project," Business Strategy and the Environment, Wiley Blackwell, vol. 11(1), pages 1-13, January.
    13. Mohamad Nur Utomo & Sugeng Wahyudi & Harjum Muharam & Maximus Leonardo Taolin, 2018. "Strategy To Improve Firm Performance Through Operational Efficiency Commitment To Environmental Friendliness: Evidence From Indonesia," Organizations and Markets in Emerging Economies, Faculty of Economics, Vilnius University, vol. 9(1).
    14. Erik G. Hansen & Stefan Schaltegger, 2016. "The Sustainability Balanced Scorecard: A Systematic Review of Architectures," Journal of Business Ethics, Springer, vol. 133(2), pages 193-221, January.

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