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Sustainability metrics and indices are measures of sustainability, using numbers to quantify environmental, social and economic aspects of the world. [1] There are multiple perspectives on how to measure sustainability as there is no universal standard. [2] Intead, different disciplines and international organizations have offered measures or indicators of how to measure the concept.
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 remains limited.
Various ways of operationalizing or measuring sustainability have been developed. Since the 2010s, there has been an expansion of interest in Sustainable Development Index (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. [3]
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 Ecological footprint of Global Footprint Network and its partner organizations; 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.
At the heart of the debate over different indicators are not only different disciplinary approaches but also different views of development. Some indicators reflect the ideology of globalization and urbanization that seek to define and measure progress on whether different countries or cultures agree to accept industrial technologies in their eco-systems. [4] Other approaches, like those that start from international treaties on cultural rights of indigenous peoples to maintain traditional cultures, measure the ability of those cultures to maintain their traditions within their eco-systems at whatever level of productivity they choose.
The Lempert-Nguyen indicator, devised in 2008 for practitioners, starts with the standards for sustainable development that have been agreed upon by the international community and then looks at whether intergovernmental organizations such as the UNDP and other development actors are applying these principles in their projects and work as a whole. [5]
In using sustainability indicators, it is important to distinguish between three types of sustainability that are often mentioned in international development:
The following list is not exhaustive but contains the major points of view:
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") suggested the following three operational rules defining the condition of ecological (thermodynamic) sustainability:
Some commentators have argued that the "Daly Rules", based on ecological theory and the Laws of Thermodynamics, should 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. [6]
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.
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 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. [7]
Ecological footprint accounting, based on the biological concept of carrying capacity, tracks the amount of land and water area a human population demands for producing the biological resources the population consumes, for absorbing its waste, and for accommodating its built infrastructure, all under prevailing technology. This amount then is compared to available biocapacity, in the world or in that region. The biocapacity represents the area able to regenerate resources and assimilate waste. Global Footprint Network publishes every year results for all nations captured in UN statistics.
The algorithms of ecological footprint accounts have 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 a measure of quality of life, for instance through the "Happy Planet Index" (HPI) calculated for 178 nations (Marks et al., 2006). The Happy Planet Index calculates how many happy life years each country is able to generate per global hectare of ecological footprint.
One of the striking conclusions to emerge from ecological footprint accounting 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. [8] The Footprint analysis is closely related to the I = PAT equation that, itself, can be considered a metric.
Though sustainable development has become a concept that biologists and ecologists have measured from an eco-system point of view and that the business community has measured from a perspective of energy and resource efficiencies and consumption, the discipline of anthropology is itself founded on the concept of sustainability of human groups within ecological systems. At the basis of the definition of culture is whether a human group is able to transmit its values and continue several aspects of that lifestyle for at least three generations. The measurement of culture, by anthropologists, is itself a measure of sustainability and it is also one that has been codified by international agreements and treaties like the Rio Declaration of 1992 and the United Nations Declaration on the Rights of Indigenous Peoples to maintain a cultural group's choice of lifestyles within their lands and ecosystems.
Terralingua, an organization of anthropologists and linguists working to protect biocultural diversity, with a focus on language, has devised a sert of measures with UNESCO for measuring the survivability of languages and cultures in given eco-systems. [9]
The Lempert–Nguyen indicator of sustainable development, developed in 2008 by David Lempert and Hue Nhu Nguyen, is one that incorporates and integrates these cultural principles with international law. [5]
A number of agencies including the UN Global Compact Cities Programme, World Vision and Metropolis have since 2010 begun using the Circles of Sustainability approach that sets up a four-domain framework for choosing appropriate indicators. Rather than designating the indicators that have to be used like most other approaches, it provides a framework to guide decision-making on what indicators are most useful. The framework is arranged around four domains - economics, ecology, politics and culture - which are then subdivided into seven analytically derived sub-domains for each domain. Indicators are linked to each sub-domain. By choosing culture as one of its key domains, the approach takes into account the emphasis of the 'Anthropological' approach (above), but retains a comprehensive sense of sustainability. The approach can be used to map any other sustainability indicator set. [10] [11] [12] [13] This is foundationally different from the Global Reporting Initiative Index (below) which uses a triple-bottom-line organizing framework, and is most relevant to corporate reporting.
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.
In 1956 Dr. Howard 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". [14]
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 the emergy methodology aims to calculate.
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). [16] 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.
In 1996 the International Institute for Sustainable Development (IISD) 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) [17] 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."
The International Institute for Sustainable Development has produced a "Dashboard of Sustainability", "a free, non-commercial software package that illustrates the complex relationships among economic, social and environmental issues". This is based on Sustainable Development Indicators Prepared for the United Nations Division for Sustainable Development (UN-DSD)DECEMBER 2005.
The World Business Council for Sustainable Development (WBCSD), 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. [18] This merger is motivated by the following six observations (Hargroves & Smith 2005):
Life-cycle assessment is a "composite measure of sustainability." [19] 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.
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 contribution to stakeholder value. This approach has manifested itself in three key areas of strategic intent: 'sustainable innovation', human development, 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. Companies have introduced key development indicators to set targets and track progress on sustainable development. Some key players[ according to whom? ] are:
Another application of the term sustainability has been in the Sustainable Livelihoods Approach, developed from conceptual work by Amartya Sen, and the UK's Institute for Development Studies. 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. [20] A wide range of information resources on Sustainable Livelihoods Approaches can be found at Livelihoods Connect. [21]
Some analysts view this measure with caution because they believe that it has a tendency to take one part of the footprint analysis and I = PAT equation (productivity) and to focus on the sustainability of economic returns to an economic sector rather than on the sustainability of the entire population or culture.
The United Nations Food and Agriculture Organization (FAO) has identified considerations for technical cooperation that affect three types of sustainability:
Some ecologists have emphasised a fourth type of sustainability:
Sustainability is relevant to international development projects. One 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. [ citation needed ]
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). The objective of sustainable development is open to various interpretations. [22]
Natural capital is the world's stock of natural resources, which includes geology, soils, air, water and all living organisms. Some natural capital assets provide people with free goods and services, often called ecosystem services. All of these underpin our economy and society, and thus make human life possible.
Ecological economics, bioeconomics, ecolonomy, eco-economics, or ecol-econ is both a transdisciplinary and an interdisciplinary field of academic research addressing the interdependence and coevolution of human economies and natural ecosystems, both intertemporally and spatially. By treating the economy as a subsystem of Earth's larger ecosystem, and by emphasizing the preservation of natural capital, the field of ecological economics is differentiated from environmental economics, which is the mainstream economic analysis of the environment. One survey of German economists found that ecological and environmental economics are different schools of economic thought, with ecological economists emphasizing strong sustainability and rejecting the proposition that physical (human-made) capital can substitute for natural capital.
The ecological footprint measures human demand on natural capital, i.e. the quantity of nature it takes to support people and their economies. It tracks human demand on nature through an ecological accounting system. The accounts contrast the biologically productive area people use to satisfy their consumption to the biologically productive area available within a region, nation, or the world (biocapacity). Biocapacity is the productive area that can regenerate what people demand from nature. Therefore, the metric is a measure of human impact on the environment. As Ecological Footprint accounts measure to what extent human activities operate within the means of our planet, they are a central metric for sustainability.
The triple bottom line is an accounting framework with three parts: social, environmental and economic. Some organizations have adopted the TBL framework to evaluate their performance in a broader perspective to create greater business value. Business writer John Elkington claims to have coined the phrase in 1994.
International development or global development is a broad concept denoting the idea that societies and countries have differing levels of economic or human development on an international scale. It is the basis for international classifications such as developed country, developing country and least developed country, and for a field of practice and research that in various ways engages with international development processes. There are, however, many schools of thought and conventions regarding which are the exact features constituting the "development" of a country.
A green economy is an economy that aims at reducing environmental risks and ecological scarcities, and that aims for sustainable development without degrading the environment. It is closely related with ecological economics, but has a more politically applied focus. The 2011 UNEP Green Economy Report argues "that to be green, an economy must not only be efficient, but also fair. Fairness implies recognizing global and country level equity dimensions, particularly in assuring a Just Transition to an economy that is low-carbon, resource efficient, and socially inclusive."
Sustainable urban infrastructure expands on the concept of urban infrastructure by adding the sustainability element with the expectation of improved and more resilient urban development. In the construction and physical and organizational structures that enable cities to function, sustainability also aims to meet the needs of the present generation without compromising the capabilities of the future generations.
Emergy is the amount of energy consumed in direct and indirect transformations to make a product or service. Emergy is a measure of quality differences between different forms of energy. Emergy is an expression of all the energy used in the work processes that generate a product or service in units of one type of energy. Emergy is measured in units of emjoules, a unit referring to the available energy consumed in transformations. Emergy accounts for different forms of energy and resources Each form is generated by transformation processes in nature and each has a different ability to support work in natural and in human systems. The recognition of these quality differences is a key concept.
An eco-city or ecocity is "a human settlement modeled on the self-sustaining resilient structure and function of natural ecosystems", as defined by Ecocity Builders. Simply put, an eco-city is an ecologically healthy city. The World Bank defines eco-cities as "cities that enhance the well-being of citizens and society through integrated urban planning and management that harness the benefits of ecological systems and protect and nurture these assets for future generations". Although there is no universally accepted definition of an 'eco-city', among available definitions, there is some consensus on the basic features of an eco-city.
The "Melbourne Principles" for Sustainable Cities are ten short statements on how cities can become more sustainable. They were developed in Melbourne (Australia) on 2 April 2002 during an international Charrette, sponsored by the United Nations Environment Programme (UNEP) and the International Council for Local Environmental Initiatives. Experts at the Charrette were drawn from developing and developed countries.
In its broadest sense, social vulnerability is one dimension of vulnerability to multiple stressors and shocks, including abuse, social exclusion and natural hazards. Social vulnerability refers to the inability of people, organizations, and societies to withstand adverse impacts from multiple stressors to which they are exposed. These impacts are due in part to characteristics inherent in social interactions, institutions, and systems of cultural values.
DPSIR is a causal framework used to describe the interactions between society and the environment. It seeks to analyze and assess environmental problems by bringing together various scientific disciplines, environmental managers, and stakeholders, and solve them by incorporating sustainable development. First, the indicators are categorized into "drivers" which put "pressures" in the "state" of the system, which in turn results in certain "impacts" that will lead to various "responses" to maintain or recover the system under consideration. It is followed by the organization of available data, and suggestion of procedures to collect missing data for future analysis. Since its formulation in the late 1990s, it has been widely adopted by international organizations for ecosystem-based study in various fields like biodiversity, soil erosion, and groundwater depletion and contamination. In recent times, the framework has been used in combination with other analytical methods and models, to compensate for its shortcomings. It is employed to evaluate environmental changes in ecosystems, identify the social and economic pressures on a system, predict potential challenges and improve management practices. The flexibility and general applicability of the framework make it a resilient tool that can be applied in social, economic, and institutional domains as well.
Sustainability accounting originated in the 1970s and is considered a subcategory of financial accounting that focuses on the disclosure of non-financial information about a firm's performance to external stakeholders, such as capital holders, creditors, and other authorities. Sustainability accounting represents the activities that have a direct impact on society, environment, and economic performance of an organisation. Sustainability accounting in managerial accounting contrasts with financial accounting in that managerial accounting is used for internal decision making and the creation of new policies that will have an effect on the organisation's performance at economic, ecological, and social level. Sustainability accounting is often used to generate value creation within an organisation.
Sustainability is a social goal for people to co-exist on Earth over a long time. Definitions of this term are disputed and have varied with literature, context, and time. Sustainability usually has three dimensions : environmental, economic, and social. Many definitions emphasize the environmental dimension. This can include addressing key environmental problems, including climate change and biodiversity loss. The idea of sustainability can guide decisions at the global, national, and individual levels. A related concept is that of sustainable development, and the terms are often used to mean the same thing. UNESCO distinguishes the two like this: "Sustainability is often thought of as a long-term goal, while sustainable development refers to the many processes and pathways to achieve it."
Sustainability measurement is a set of frameworks or indicators used to measure how sustainable something is. This includes processes, products, services and businesses. Sustainability is difficult to quantify. It may even be impossible to measure as there is no fixed definition. To measure sustainability, frameworks and indicators consider environmental, social and economic domains. The metrics vary by use case and are still evolving. They include indicators, benchmarks and audits. They include sustainability standards and certification systems like Fairtrade and Organic. They also involve indices and accounting. They can include assessment, appraisal and other reporting systems. The metrics are used over a wide range of spatial and temporal scales. For organizations, sustainability measures include corporate sustainability reporting and Triple Bottom Line accounting. For countries, they include estimates of the quality of sustainability governance or quality of life measures, or environmental assessments like the Environmental Sustainability Index and Environmental Performance Index. Some methods let us track sustainable development. These include the UN Human Development Index and ecological footprints.
Although for many decades, it was customary to focus on GDP and other measures of national income, there has been growing interest in developing broad measures of economic well-being. National and international approaches include the Beyond GDP programme developed by the European Union, the Better Lives Compendium of Indicators developed by the OECD, as well as many alternative metrics of wellbeing or happiness. One of the earliest attempts to develop such an index at national level was Bhutan's Gross National Happiness Index and there are a now a number of similar projects ongoing around the world, including a project to develop for the UK an assessment of national well-being, commissioned by the Prime Minister David Cameron and led by the Office for National Statistics.
Traditionally, market orientation (MO) focuses on microenvironment and the functional management of an organisation. However, contemporary organisations have widened their focus to incorporate more roles, functions and emphasis on the macro environment. Firms have been concerned with short run success and often not taken into account the long-run ecological, social and economic effects from their activities. Despite growth in the MO concept, there is still a need to reconceptualise the concept with a greater emphasis on external factors that influence a firm.
The water, energy and food security nexus according to the Food And Agriculture Organisation of the United Nations (FAO), means that water security, energy security and food security are very much linked to one another, meaning that the actions in any one particular area often can have effects in one or both of the other areas.
Natural capital accounting is the process of calculating the total stocks and flows of natural resources and services in a given ecosystem or region. Accounting for such goods may occur in physical or monetary terms. This process can subsequently inform government, corporate and consumer decision making as each relates to the use or consumption of natural resources and land, and sustainable behaviour.
Climate resilience is a concept to describe how well people or ecosystems are prepared to bounce back from certain climate hazard events. The formal definition of the term is the "capacity of social, economic and ecosystems to cope with a hazardous event or trend or disturbance". For example, climate resilience can be the ability to recover from climate-related shocks such as floods and droughts. Methods of coping include suitable responses to maintain relevant functions of societies and ecosystems. To increase climate resilience means one has to reduce the climate vulnerability of people and countries. Efforts to increase climate resilience include a range of social, economic, technological, and political strategies. They have to be implemented at all scales of society, from local community action all the way to global treaties.
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