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Sustainability Indicators at the Firm Level

Daniel Tyteca

Journal of Industrial Ecology, 1998, vol. 2, issue 4, 61-77

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.

Date: 1998
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Citations: View citations in EconPapers (11)

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https://doi.org/10.1162/jiec.1998.2.4.61

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