Sustainability metrics and indices

Sustainability metrics and indices

Sustainable development indicators (SDI) have the potential to turn the generic concept of sustainability into action. Today, however, we are far from achieving this potential. We can't currently find a standardized set of indicators and several private corporations are creating their own suitable for their purposes while international institutions are still trying to develop a generic indicator for measuring and monitoring sustainable development.

During the last 10 years we have seen a remarkable expansion of interest in SDI systems, both in industrialized and, albeit to a lesser extent, in developing countries. SDIs are seen as useful in a wide range of settings, by a wide range of actors: international and intergovernmental bodies; national governments and government departments; economic sectors; administrators of geographic or ecological regions; communities; nongovernmental organizations; and the private sector.

SDI processes are underpinned and driven by the increasing need for improved quality and regularly produced information with better spatial and temporal resolution. Accompanying this need is the requirement, brought in part by the information revolution, to better differentiate between information that matters in any given policy context versus information that is of secondary importance or irrelevant.

A large and still growing number of attempts to create aggregate measures of various aspects of sustainability created a stable of indices that provide a more nuanced perspective on development than economic aggregates such as GDP. Some of the most prominent of these include the Human Development Index (HDI) of the United Nations Development Programme (UNDP); the Environmental Sustainability Index (ESI) and the pilot Environmental Performance Index (EPI) reported under the World Economic Forum(WEF); or the Genuine Progress Index (GPI) calculated at the national or sub-national level. Parallel to these initiatives, political interest in producing a green GDP that would take at least the cost of pollution and natural capital depletion into account has grown, even if implementation is held back by the reluctance of policymakers and statistical services arising mostly from a concern about conceptual and technical challenges.

While sustainability indicators, indices and reporting systems gained growing popularity in both the public and private sectors, their effectiveness in influencing actual policy and practices often remained limited.

Metrics and indices

Various ways of operationalizing or measuring sustainability have been developed. The following list is not exhaustive but contains the major points of view:

The "Daly Rules"

University of Maryland School of Public Policy professor and former Chief Economist for the World Bank Herman E. Daly (working from theory initially developed by Romanian economist Nicholas Georgescu-Roegen and laid out in his 1971 opus "The Entropy Law and the Economic Process") suggests the following three operational rules defining the condition of ecological (thermodynamic) sustainability:

#Renewable resources such as fish, soil, and groundwater must be used no faster than the rate at which they regenerate.
#Nonrenewable resources such as minerals and fossil fuels must be used no faster than renewable substitutes for them can be put into place.
#Pollution and wastes must be emitted no faster than natural systems can absorb them, recycle them, or render them harmless.

Some commentators have argued that the "Daly Rules," being based on ecological theory and the Laws of Thermodynamics, should perhaps be considered implicit or foundational for the many other systems that are advocated, and are thus the most straightforward system for operationalization of the Bruntland Definition. In this view, the Bruntland Definition and the Daly Rules can be seen as complementary -- Bruntland provides the ethical goal of non-depletion of natural capital, Daly details parsimoniously how this ethic is operationalized in physical terms. The system is rationally complete, and in agreement with physical laws. Other definitions may thus be superfluous, or mere glosses on the immutable thermodynamic reality. [Womersley, Michael: A Peculiarly American Green: Religion and Environmental Policy in the United States, 2002, Dissertation, University of Maryland School of Public Policy. pg.19-21 ]

This being said, there are numerous other definitions and systems of operationalization for sustainability, and there has been competition for influence between them, with the unfortunate result that, in the minds of some observers at least, sustainability has no agreed-upon definition.

The Natural Step/System Conditions of Sustainability

Following the Brundtland Commission's report, one of the first initiatives to bring scientific principles to the assessment of sustainability was by Swedish cancer scientist Karl-Henrik Robèrt. Robèrt coordinated a consensus process to define and operationalize sustainability. At the core of the process lies a consensus on what Robèrt came to call the natural step framework. The framework is based on a definition of sustainability, described as the system conditions of sustainability (as derived from System theory). In the natural step framework, a sustainable society is one which does not systematically increase concentrations of "substances extracted from the earth's crust," or "substances produced by society"; that "does not degrade the environment" and in which people have the "capacity to meet their needs worldwide." [TNS Canada [http://www.naturalstep.ca/system-conditions.html System Conditions] . Retrieved on: 20078-07-15.]

Life Cycle Assessment

Life Cycle Assessment is a "composite measure of sustainability." It analyses the environmental performance of products and services through all phases of their life cycle: extracting and processing raw materials; manufacturing, transportation and distribution; use, re-use, maintenance; recycling, and final disposal. [] http://www.canadianarchitect.com/asf/perspectives_sustainibility/measures_of_sustainablity/measures_of_sustainablity_lca.htm Measures of sustainability] . Canadian Architect. Retrieved on: June 30, 2007.]

Ecological Footprint Analysis

Ecological footprint analysis is an estimate of the amount of land area a human population, given prevailing technology, would need if the current resource consumption and pollution by the population is matched by the sustainable (renewable) resource production and waste assimilation by such a land area. The algorithms of the ecological footprint model have, on the one hand, been used in combination with the emergy methodology (S. Zhao, Z. Li and W. Li 2005), and a sustainability index has been derived from the latter. They have also been combined with an index of quality of life (Marks et al, 2006), and the outcome christened the "(Un)Happy Planet Index" (HPI) shows data for 178 nations.

One of the striking conclusions to emerge from ecological footprint analyses is that it would be necessary to have 4 or 5 back-up planets engaged in nothing but agriculture for all those alive today to live a western lifestyle.Fact|date=November 2007

Global Reporting Initiative

In 1997 the Global Reporting Initiative (GRI) was started as a multi-stakeholder process and independent institution whose mission has been "to develop and disseminate globally applicable Sustainability Reporting Guidelines".The GRI uses ecological footprint analysis and became independent in 2002. It is an official collaborating centre of the United Nations Environment Programme (UNEP) and during the tenure of Kofi Annan, it cooperated with the UN Secretary-General’s Global Compact.

Energy, Emergy and Sustainability Index (SI)

In 1956 Dr. H.T. Odum of the University of Florida coined the term Emergy and devised the accounting system of embodied energy.In 1997, systems ecologists M.T.Brown and S.Ulgiati published their formulation of a quantitative sustainability index (SI) as a ratio of the emergy (spelled with an "m", i.e. "embodied energy", not simply "energy") yield ratio (EYR) to the environmental loading ratio (ELR). Brown and Ulgiati also called the sustainability index the "Emergy Sustainability Index" (ESI), "an index that accounts for yield, renewability, and environmental load. It is the incremental emergy yield compared to the environmental load". [Brown, M.T. and S. Ulgiati.1999. Emergy evaluation of natural capital and biosphere services. AMBIO. Vol.28 No.6, Sept. 1999.] :::* extrm{Sustainability Index} = frac{ extrm{Emergy Yield Ratio{ extrm{Environmental Loading Ratio = frac{ extit{EYR{ extit{ELR
* NOTE: The numerator is called "emergy" and is spelled with an "m". It is an abbreviation of the term, "embodied energy". The numerator is NOT "energy yield ratio", which is a different concept. [Ulgiati, S. and M.T. Brown. 1999. Emergy accounting of human-dominated, large scale ecosystems. In Jorgensen and Kay (eds.) Thermodynamics and Ecology. Elsevier.]

Writers like Leone (2005) and Yi et al. have also recently suggested that the emergy sustainability index has significant utility. In particular, Leone notes that while the GRI measures behavior, it fails to calculate supply constraints which the emergy methodology aims to calculate.

Environmental Sustainability Index

In 2004, a joint initiative of the Yale Center for Environmental Law and Policy (YCELP) and the Center for International Earth Science Information Network (CIESIN) of Columbia University, in collaboration with the World Economic Forum and the Directorate-General Joint Research Centre (European Commission) also attempted to construct an Environmental Sustainability Index (ESI) [ [http://sedac.ciesin.columbia.edu/es/esi/index.html Environmental Sustainability Index] (2005) Yale Center for Environmental Law and Policy Yale University, New Haven and Yale University Center for International Earth Science Information Network Columbia University] . This was formally released in Davos, Switzerland, at the annual meeting of the World Economic Forum (WEF) on 28 January 2005. The report on this index made a comparison of the WEF ESI to other sustainability indicators such as the Ecological footprint Index. However there was no mention of the emergy sustainability index.

International Institute for Sustainable Development Sample Policy Framework

In 1996 the International Institute for Sustainable Development developed a Sample Policy Framework which proposed that a sustainability index "would give decision-makers tools to rate policies and programs against each other" (1996, p.9). Ravi Jain (2005) [Jain, Ravi; Sustainability: metrics, specific indicators and preference index, Clean Technologies and Environmental Policy (Journal), May 2005, pg. 71-72 ] argued that, "The ability to analyze different alternatives or to assess progress towards sustainability will then depend on establishing measurable entities or metrics used for sustainability."

ustainability Dashboard

The [http://www.iisd.org/ International Institute for Sustainable Development] has produced a " [http://www.iisd.org/cgsdi/dashboard.asp Dashboard of Sustainability] ", "a free, non-commercial software package that illustrates the complex relationships among economic, social and environmental issues". This is based on [http://www.iisd.org/pdf/2005/measure_indicators_sd_way_forward.pdf Sustainable Development Indicators] Prepared for the United Nations Division for Sustainable Development (UN-DSD)DECEMBER 2005.

The World Business Council for Sustainable Development approach

The World Business Council for Sustainable Development, founded in 1995, has formulated the business case for sustainable development and argues that "sustainable development is good for business and business is good for sustainable development". This view is also maintained by proponents of the concept of industrial ecology. The theory of industrial ecology declares that industry should be viewed as a series of interlocking man-made ecosystems interfacing with the natural global ecosystem.

According to some economists, it is possible for the concepts of sustainable development and competitiveness to merge if enacted wisely, so that there is not an inevitable trade-off [Esty, D. C., Porter, M. E., Industrial Ecology and Competitiveness: Strategic Implications for the Firm, Journal of Industrial Ecology Winter 1998, Vol. 2, No. 1: 35-43.] . This merger is motivated by the following six observations (Hargroves & Smith 2005):

#Throughout the economy there are widespread untapped potential resource productivity improvements to be made to be coupled with effective design.
#There has been a significant shift in understanding over the last three decades of what creates lasting competitiveness of a firm.
#There is now a critical mass of enabling technologies in eco-innovations that make integrated approaches to sustainable development economically viable.
#Since many of the costs of what economists call ‘environmental externalities’ are passed on to governments, in the long-term sustainable development strategies can provide multiple benefits to the tax payer.
#There is a growing understanding of the multiple benefits of valuing social and natural capital, for both moral and economic reasons, and including them in measures of national well-being.
#There is mounting evidence to show that a transition to a sustainable economy, if done wisely, may not harm economic growth significantly, in fact it could even help it. Recent research by ex-Wuppertal Institute member Joachim Spangenberg, working with neo-classical economists, shows that the transition, if focused on improving resource productivity, will lead to higher economic growth than business as usual, while at the same time reducing pressures on the environment and enhancing employment.

ustainable Enterprise Approach

Building on the work of the World Business Council for Sustainable Development, businesses began to see the needs of environmental and social systems as opportunities for business development and, ultimately, profit. This approach has manifested itself in two key areas of strategic intent: Sustainable Innovation and Bottom of the Pyramid business strategies. Now, as businesses have begun the shift toward sustainable enterprise, many business schools are leading the research and education of the next generation of business leaders. Some key players are:
*The Center for Sustainable Global Enterprise at Cornell University
*The Erb Institute at the Ross School of Business at The University of Michigan
*The William Davidson Institute at the Ross School of Business at The University of Michigan
*The Center for Sustainable Enterprise at the University of North Carolina, Chapel-Hill
*The Center for Sustainable Enterprise at the Stuart School of Business at the Illinois Institute of Technology

The Stern Review on the Economics of Climate Change

This report, commissioned by former UK Chancellor of the Exchequer Gordon Brown (now UK Prime Minister), on the economics of global climate change, estimated that 1% of GDP will now need to be invested to save 20% of GDP, because of failures to date by most global market sectors to integrate sustainability in the metrics they have governed with.

ustainable Livelihoods Approach

Another application of sustainability has been in the Sustainable Livelihoods Approach, developed from conceptual work by Amartya Sen, and the UK's Institute for Development Studies (IDS). This was championed by the UK's Department for International Development(DFID), UNDP, Food and Agriculture Organization (FAO) as well as NGOs such as CARE, OXFAM and the African Institute for Community-Driven Development, Khanya-aicdd. Key concepts include the Sustainable Livelihoods (SL) Framework, a holistic way of understanding livelihoods, the SL principles, as well as six governance issues developed by Khanya-aicdd. [ [http://www.khanya-aicdd.org/site_files/index.asp?pid=55 Khanya-aicdd ] ] An important resources on the SLA is the Livelihoods Connect service run by IDS available at [http://www.livelihoodsconnect.org] .

UN Food and Agriculture Organisation (FAO) Types of Sustainability

The Food and Agriculture Organisation (FAO) has identified considerations for technical cooperation that affect three types of sustainability:

* Institutional sustainability. Can a strengthened institutional structure continue to deliver the results of technical cooperation to end users? The results may not be sustainable if, for example, the planning authority that depends on the technical cooperation loses access to top management, or is not provided with adequate resources after the technical cooperation ends. Institutional sustainability can also be linked to the concept of social sustainability, which asks how the interventions can be sustained by social structures and institutions;

* Economic and financial sustainability. Can the results of technical cooperation continue to yield an economic benefit after the technical cooperation is withdrawn? For example, the benefits from the introduction of new crops may not be sustained if the constraints to marketing the crops are not resolved. Similarly, economic, as distinct from financial, sustainability may be at risk if the end users continue to depend on heavily subsidized activities and inputs.

* Ecological sustainability. Are the benefits to be generated by the technical cooperation likely to lead to a deterioration in the physical environment, thus indirectly contributing to a fall in production, or well-being of the groups targeted and their society?

Some ecologists have emphasised a fourth type of sustainability:

* Energetic sustainability. This type of sustainability is often concerned with the production of energy and mineral resources. Some researchers have pointed to trends which document the limits of production. See Hubbert peak for example.

"Development sustainability" approaches

Sustainability is obviously relevant to international development projects. A definition of development sustainability is "the continuation of benefits after major assistance from the donor has been completed" (Australian Agency for International Development 2000). Ensuring that development projects are sustainable can reduce the likelihood of them collapsing after they have just finished; it also reduces the financial cost of development projects and the subsequent social problems, such as dependence of the stakeholders on external donors and their resources. All development assistance, apart from temporary emergency and humanitarian relief efforts, should be designed and implemented with the aim of achieving sustainable benefits. There are ten key factors that influence development sustainability. Fact|date=February 2007

#Participation and ownership. Get the stakeholders (men and women) to genuinely participate in design and implementation. Build on their initiatives and demands. Get them to monitor the project and periodically evaluate it for results.
#Capacity building and training. Training stakeholders to take over should begin from the start of any project and continue throughout. The right approach should both motivate and transfer skills to people.
#Government policies. Development projects should be aligned with local government policies.
#Financial. In some countries and sectors, financial sustainability is difficult in the medium term. Training in local fundraising is a possibility, as is identifying links with the private sector, charging for use, and encouraging policy reforms.
#Management and organization. Activities that integrate with or add to local structures may have better prospects for sustainability than those which establish new or parallel structures.
#Social, gender and culture. The introduction of new ideas, technologies and skills requires an understanding of local decision-making systems, gender divisions and cultural preferences.
#Technology. All outside equipment must be selected with careful consideration given to the local finance available for maintenance and replacement. Cultural acceptability and the local capacity to maintain equipment and buy spare parts are vital.
#Environment. Poor rural communities that depend on natural resources should be involved in identifying and managing environmental risks. Urban communities should identify and manage waste disposal and pollution risks.
#External political and economic factors. In a weak economy, projects should not be too complicated, ambitious or expensive.
#Realistic duration. A short project may be inadequate for solving entrenched problems in a sustainable way, particularly when behavioural and institutional changes are intended. A long project, may on the other hand, promote dependence.

The definition of sustainability as "the continuation of benefits after major assistance from the donor has been completed" (Australian Agency for International Development 2000) is echoed by other definitions (World Bank, USAID). The concept has however evolved as it has become of interest to non grant-making institutions. Sustainability in development refers to "processes" and "relative" increases in local capacity and performance while foreign assistance decreases or shifts (not necessarily disappears).

External links

http://www.childsurvival.com/documents/CSTS/sustainability.cfm

References


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