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Application of Environmental Input-Output Analysis for Corporate and Product Environmental Footprints—Learnings from Three Cases

Author

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  • Louise Laumann Kjaer

    (Department of Mechanical Engineering, Technical University of Denmark, 2800 Kgs. Lyngby, Denmark)

  • Niels Karim Høst-Madsen

    (NIRAS, 3450 Allerød, Denmark)

  • Jannick H. Schmidt

    (LCA Consultants, 9000 Aalborg, Denmark)

  • Tim C. McAloone

    (Department of Mechanical Engineering, Technical University of Denmark, 2800 Kgs. Lyngby, Denmark)

Abstract

An increasing number of companies are expanding their environmental impact reduction targets and strategies to include their supply chains or whole product life cycles. In this paper, we demonstrate and evaluate an approach, where we used a hybrid Environmental Input-Output (EIO) database as a basis for corporate and product environmental footprint accounts, including the entire supply chain. We present three cases, where this approach was applied. Case study 1 describes the creation of total corporate carbon footprint accounts for three Danish regional healthcare organisations. In case study 2, the approach was used as basis for an Environmental Profit and Loss account for the healthcare company, Novo Nordisk A/S. Case study 3 used the approach for life cycle assessment of a tanker ship. We conclude that EIO-based analyses offer a holistic view of environmental performance, provide a foundation for decision-making within reasonable time and cost, and for companies with a large upstream environmental footprint, the analysis supports advancing their sustainability agenda to include supply chain impacts. However, there are implications when going from screening to implementing the results, including how to measure and monitor the effect of the different actions. Thus, future research should include more detailed models to support decision-making.

Suggested Citation

  • Louise Laumann Kjaer & Niels Karim Høst-Madsen & Jannick H. Schmidt & Tim C. McAloone, 2015. "Application of Environmental Input-Output Analysis for Corporate and Product Environmental Footprints—Learnings from Three Cases," Sustainability, MDPI, vol. 7(9), pages 1-24, August.
  • Handle: RePEc:gam:jsusta:v:7:y:2015:i:9:p:11438-11461:d:54709
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    References listed on IDEAS

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    Cited by:

    1. Thomas Adomah Worae & Collins C. Ngwakwe & Cosmas C. Ambe, 2018. "Threshold Effect Analysis of the Relationship between Environmental Responsibility and Financial Performance," Managing Global Transitions, University of Primorska, Faculty of Management Koper, vol. 16(4 (Winter), pages 355-377.
    2. Emanuele Bonamente & Franco Cotana, 2015. "Carbon and Energy Footprints of Prefabricated Industrial Buildings: A Systematic Life Cycle Assessment Analysis," Energies, MDPI, vol. 8(11), pages 1-17, November.
    3. Mohammad Aghapour Sabbaghi & Afsaneh Naeimifar, 2022. "Analysis of import substitution policy with an emphasis on environmental issues based on environmental input–output (EIO) model," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(12), pages 14130-14162, December.
    4. Man Yu & Thomas Wiedmann, 2018. "Implementing hybrid LCA routines in an input–output virtual laboratory," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 7(1), pages 1-24, December.
    5. Seppo Junnila & Juudit Ottelin & Laura Leinikka, 2018. "Influence of Reduced Ownership on the Environmental Benefits of the Circular Economy," Sustainability, MDPI, vol. 10(11), pages 1-13, November.
    6. Louise Laumann Kjaer & Daniela C. A. Pigosso & Monia Niero & Nynne Marie Bech & Tim C. McAloone, 2019. "Product/Service‐Systems for a Circular Economy: The Route to Decoupling Economic Growth from Resource Consumption?," Journal of Industrial Ecology, Yale University, vol. 23(1), pages 22-35, February.

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