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Sustainability Indicators at the Firm Level

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  • Daniel Tyteca

Abstract

After reviewing recent attempts to develop sustainability indicators, this article shows how the principles of productive efficiency can be used to elaborate such indicators at the firm level. The theory of productive efficiency is somewhat expanded to incorporate fundamental issues of sustainable development: environment, equity, and futurtty. Efficiency, in the expanded notion of productive efficiency, is viewed as a necessary condition for sustainability. Working with aggregate performance indicators, it is important not to lose track of the relevant basic information. Therefore, instead of elaborating one unique indicator; we propose to implement several kinds of indicators, each of which stresses one particular focus (e.g., environmental vs. social concems). The definition of sustainable development indicators is illustrated with reference to a small data set of U.S. fossil fuel‐fired electric utilities. In a sustainabiltty perspective, two important aspects are stressed, namely, the use of nonmewable resources and the inclusion of employment as a variable to maximize rather than an input to minimize. The article ends with a discussion of the significance of, and limits to, the proposed indicators.

Suggested Citation

  • Daniel Tyteca, 1998. "Sustainability Indicators at the Firm Level," Journal of Industrial Ecology, Yale University, vol. 2(4), pages 61-77, October.
    • Handle: RePEc:bla:inecol:v:2:y:1998:i:4:p:61-77
    DOI: 10.1162/jiec.1998.2.4.61
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    Cited by:

    1. Zhou, Haibo & Yang, Yi & Chen, Yao & Zhu, Joe, 2018. "Data envelopment analysis application in sustainability: The origins, development and future directions," European Journal of Operational Research, Elsevier, vol. 264(1), pages 1-16.
    2. Francesco Vidoli & Giancarlo Ferrara, 2015. "Analyzing Italian citrus sector by semi-nonparametric frontier efficiency models," Empirical Economics, Springer, vol. 49(2), pages 641-658, September.
    3. Sueyoshi, Toshiyuki & Yuan, Yan & Goto, Mika, 2017. "A literature study for DEA applied to energy and environment," Energy Economics, Elsevier, vol. 62(C), pages 104-124.
    4. Tsaples, G. & Papathanasiou, J., 2021. "Data envelopment analysis and the concept of sustainability: A review and analysis of the literature," Renewable and Sustainable Energy Reviews, Elsevier, vol. 138(C).
    5. Mishal J. Al-Thani & Muammer Koc, 2024. "Development of an Alternative Sustainable Economy Index: Integrating Multidimensional Sustainability Features," Sustainability, MDPI, vol. 16(18), pages 1-64, September.
    6. Merante, Paolo & Van Passel, Steven & Pacini, Cesare, 2015. "Using agro-environmental models to design a sustainable benchmark for the sustainable value method," Agricultural Systems, Elsevier, vol. 136(C), pages 1-13.
    7. Sarkis, Joseph & Cordeiro, James J., 2012. "Ecological modernization in the electrical utility industry: An application of a bads–goods DEA model of ecological and technical efficiency," European Journal of Operational Research, Elsevier, vol. 219(2), pages 386-395.
    8. Van Passel, Steven & Nevens, Frank & Mathijs, Erik & Van Huylenbroeck, Guido, 2007. "Measuring farm sustainability and explaining differences in sustainable efficiency," Ecological Economics, Elsevier, vol. 62(1), pages 149-161, April.
    9. Paolo Cupo & Rinalda Alberta Di Cerbo, 2016. "The determinants of ranking in sustainable efficiency of Italian farms," RIVISTA DI STUDI SULLA SOSTENIBILITA', FrancoAngeli Editore, vol. 2016(2), pages 141-159.
    10. Zhou, P. & Ang, B.W. & Poh, K.L., 2008. "A survey of data envelopment analysis in energy and environmental studies," European Journal of Operational Research, Elsevier, vol. 189(1), pages 1-18, August.
    11. J Sarkis & J J Cordeiro, 2009. "Investigating technical and ecological efficiencies in the electricity generation industry: are there win-win opportunities?," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 60(9), pages 1160-1172, September.

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