Environmental Metrics

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Environmental Metrics Indicators
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Last Week

• Business drivers
• Regulations / Compliance
• Triple Bottom Line (TBL)
• ISO 14000
• Etc
• Approaches to Reduce Environmental Impact
• Sustainable development
• Industrial ecology
• Pollution prevention
• Etc

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Todays Goals Objectives
How do we define, measure, assess, and/or
predict the environmental performance or
condition of different systems?

• Learning Objectives
• Know why they are important.
• Understand some basic issues regarding
  definitions, terminology, and characteristics .
• Make you aware of some indicator classification
  schemes and list examples.
• Understand importance to ECDM-related efforts and
  apply concepts.

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Motivating Questions

• Imagine a world without measures, metrics or any
  way of indicating the condition of things
• How would you assess anything?
• How would you improve anything?
• Imagine if different companies had different or
  vague metrics
• How would you compare or benchmark them?
• How would you compare and improve their products?

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Why Important?... Some reasons
You cant manage what you cant or dont
measure. Not everything that can be counted
counts, and not everything that counts can be
counted.

1. Raise awareness and understanding
2. Measure progress towards goals
3. Support decision making

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One Definition

• Metric a quantitative measure or derivation
  from two or more measures, which may not
  necessarily indicate something useful to
  particular observers
• (a measure of something that does not necessarily
  indicate something useful)
• Indicator a characteristic that indicates a
  quality or state of a system
• (something that indicates something useful to
  someone based on one or more metrics,
  observations or both)

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Graphical Time Trends
What are the metrics and the indicators here?
Graph taken from www.nzma.org.nz/
journal/116-1175/460/
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Indicator Terminology Relationship Diagram
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Terminology Definitions Examples
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Computer Example

• Issue
• Computer manufacturers are responsible for
  disposing of their old computers
• Principle(s)
• ???
• Goal(s)
• ???
• Strategy
• ???
• Indicator(s)
• ???
• Metric(s)
• ???
• Target(s)
• ???

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What is or can be a good indicator?

1. Appropriate for the task
2. Based on readily available, accurate and
   verifiable data
3. Easy to apply and evaluate
4. Simple yet meaningful
5. Allows comparisons with other companies
6. Politically supported and accepted at different
   levels
7. Enhances understanding of the context of
   application
8. Has clear, transparent and standard methodology
   for data gathering, processing and monitoring

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What is a bad indicator?
Not everything that can be counted counts

• One that is not appropriate to the task
• Indicators do not represent the underlying
  mechanics or functional relationships of the
  system being considered this could lead to
  undesired or less than desired results if one
  does not understand the system well (Reap 2004)
• Examples
• Office paper consumption per hour
• Paper clip waste generation per month

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Quantitative vs. Qualitative

• Most people restrict the definitions of
  indicators to numerical (cardinal) variables
• Indicators could be qualitative by being nominal
  or rank (ordinal) variables
• Example of qualitative
• Smells
• Vehicle noise and vibration
• Oiliness of water
• When are qualitative indicators preferable?
• Can a quantitative indicator be made
  qualitative and vice versa?

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Lagging vs. Leading

• Lagging indicators are those that indicate what
  has already happened (past)
• Leading indicators are those that indicate what
  may happen (future)
• Most companies use lagging indicators
• Examples of leading indicators
• Amount of soil eroded
• Deforestation rate

I skate to where the puck is going to be, not
where it is.
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What is it?
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What is it?
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Snap Shots in Space Time
Graph taken from http//www.cbsnews.com/htdocs/di
rty_air/air_quality_05.html.
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Scalars vs. Vectors

• A vector is a number of indicators presented
  simultaneously to give a picture of environmental
  conditions (a.k.a. an environmental profile)
• A scalar is a single number generated by
  aggregation from two or more values (a.k.a. an
  index)
• Varying preferences
• Some prefer data in simplest form possible
  accept distortion introduced from simplification
  (scalar)
• Some prefer data in most complete form possible
  accept resulting complexity (vector)

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Value Judgments in Scalars

• Varying preferences
• Internalize value judgments
• Externalize value judgments in terms of worth or
  utility
• Qualitative evaluations e.g., Aesthetic values
• Pretty, ok, ugly
• Establishing preferences in form of weights or
  functions
• House preference function f(x, y), where x
  cost, y size
• where ws numerical representation of your
  preference for x or y, Ts target for x or y
• Difference or ratio with respect to a standard,
  target, etc.
• Concentration of heavy metals in wastewater vs.
  regulated

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Scalar Vector Relationship
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Inventory
Loads
Impacts
Aggregated Impacts
Vector
Scalars
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Example of Scalar Indicator

• Eco-Indicator 99 developed by PréConsultants
• More info http//www.pre.nl/eco-indicator99/defau
  lt.htm.

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Different Classifications

• Media Approach
• Goal Approach
• Sector Approach
• Ad hoc Nomenclatures or Listings
• Lowell Center for Sustainable Production (LCSP)
  Indicator Framework
• International Standard Organization (ISO) 14031
• Global Reporting Initiative (GRI)
• Facility Reporting Project (FRP)
• At least 23 groups working on environmental
  performance measurements (Ranganathan 1998)

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LCSP Indicator Framework

• Lowell Center for Sustainable Production

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Figure taken from (Veleva Ellenbecker 2001).
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LCSP Indicator Framework Definitions Examples

• Level One Indicators measure a facilitys level
  of compliance with regulations and/or its
  conformance with industry/association standards
  (e.g., of OSHA citations, of recordable
  injuries, cost of environmental liabilities)
• Level Two Indicators measure the facilitys
  inputs, outputs and performance (e.g., amount
  hazardous waste, total EHS operating costs, of
  employees receiving EHS training, of community
  outreach activities)
• Level Three Indicators measure the potential
  impact that the facilitys presence and
  activities have on its workers, the surrounding
  environment and communities (e.g.,
  eutrophication, disturbance of local
  environments)
• Level Four Indicators measure the lifecycle
  stages effects of their actions, which imply
  applying the Level 1-3 indicators throughout the
  supply chain (e.g., suppliers from local area
  and receiving EHS training, suppliers
  supporting take-back policies and without EHS
  violations)
• Level Five Indicators measure how a facilitys
  production activities affect the larger picture
  of sustainable society (e.g., renewable
  materials used at a rate lower or equal to the
  renewal rate, community quality of life, worker
  health status compared to other companies in
  industry)

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ISO 14031 Indicator Framework
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• Environmental Performance Indicators (EPIs)
• Operational Performance Indicators (OPIs)
• Management Performance Indicators (MPIs)
• Environmental Condition Indicators (ECIs)

Modified from (ISO_14031 1999).
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Examples of ISO 14031 Indicators
Taken from source http//www.altech-group.com/ftp
/EPEarticle.pdf.
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Sample Indicators from GRI
HW

• Economic, Environmental, Social
• Core, Additional
• Latest GRI draft can be found at
  http//www.grig3.org/pdf/EN.pdf.

For more info http//www.globalreporting.org/guid
elines/2002/dannex5.asp.
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Example of widely used indicators

• A survey by the Global Environmental Management
  Initiative (GEMI) in 1995 revealed the following
  top measures by various companies (GEMI 1998)

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How do you choose indicators?

• Figure out the issue, principle, goal and
  strategy the indicator addresses
• What is the purpose?
• External or internal environmental reporting
• Product or process redesign
• Corporate or government policy making
• Is it currently an important metric to your
  company, industry sector, local community,
  nation, world?
• Is it suggested and accepted by different
  researchers and non-government organizations?
• Is it an input to a more detailed and meaningful
  environmental assessment model?
• Is it hazardous or non-hazardous? Regulated or
  not?
• Is it a big hitter? (20/80 rule)

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EPAs Approach

• EPAs Environmental Indicator Initiative has
  developed different documents on evaluating the
  utility of certain indicators for environmental
  management and national contexts
• Various documents http//www.epa.gov/indicators/k
  eydocs.htm.
• Indicator quality review format
  http//www.epa.gov/indicators/docs/QualityReviewFo
  rmat.pdf.

They may be helpful in thinking through some
other aspects of developing and evaluating the
utility of indicators.
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Homework

• Due date February 14th, 2006
• Expected format MS Word Document
• File name convention ME4171.IM.HW.your last
  name
• Contact Info
• E-mail felipe.roman_at_gatech.edu
• Hours M-W, F 1000 am 500 pm
• Office Management Building, Tech Square, Suite
  400
• Phone [phone]

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Summary Main Points

• Indicators are important to support decision
  making
• Different definitions of indicators metrics
  abound here you have some and a relationship
  diagram to help you select or develop relevant
  indicators to particular issues
• Indicators can be qualitative, vectors, scalars,
  leading, which can useful in different situations
• Many indicator classifications, frameworks, and
  lists are out there you should use them when
  working with indicators
• Choosing the good indicators may not be obvious
  at times choose carefully since these will
  guide many of your measurement/data gathering
  efforts

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References

1. Gallopin, G., 1997, "Indicators and their use
   information for decision-making," in
   Sustainability Indicators Report of the Project
   on Indicators of Sustainable Development, B.
   Moldan and S. Billharz, John Wiley and Sons Ltd,
   URL http//www.icsu-scope.org/downloadpubs/scope5
   8/ch01-introd.html.
2. Veleva, V. and Ellenbecker, M., 2001, "Indicators
   of sustainable production framework and
   methodology," Journal of Cleaner Production, 9
   pp. 519-549.
3. Ranganathan, J., 1998, "Sustainability Rulers
   Measuring Corporate Environmental Social
   Performance," World Resource Institute, pp. 1-11.
4. FRP, 2005, Facility Reporting Project Guidelines,
   http//www.facilityreporting.org/FRPPilotDraft.htm
   .
5. GEMI, 1998, ENVIRONMENTAL PERFORMANCE A Primer
   and Survey of Metrics In Use, URL
   http//www.gemi.org/MET_101.pdf.
6. ISO_14031, 1999, "Environmental management -
   Environmental performance evaluation -
   Guidelines," International Standard Organization
   (ISO), pp. 32.
7. Roman, F., and B. Bras, 2005, Environmental
   Decision Support for Manufacturing Technology
   Selection, ME8903 Special Problems in
   Manufacturing Final Report, George W. Woodruff
   School of Mechanical Engineering.
8. Reap, J., 2004, Plants in the Garden An Approach
   to Modeling the Impact of Industrial Activities
   in Ecosystems, Mechanical Engineering M.S.
   Thesis, Georgia Institute of Technology.

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Useful Websites Documents

1. The Sustainability Report Measuring
   Sustainability http//www.sustreport.org/indicator
   s/index.html.
2. National Academy of Engineering (NAE), 1999,
   Industrial Environmental Performance Metrics
   Challenges and Opportunities, Washington, D.C.,
   National Academy Press, p. 264, Executive Summary
   URL http//books.nap.edu/html/ind_env_perf_met/.
3. NAE, 1998, International Conference on Industrial
   Environmental Performance Metrics, Held at The
   Arnold and Mabel Beckman Center of the National
   Academies, Irvine, California, November 2-4,
   1998, Prepared by Deanna J. Richards, Long
   Nguyen, http//www.nae.edu/pdf/IntlConfSumm.pdf.
4. World Business Council for Sustainable
   Development (WBCSD), 2000, Measuring
   Eco-Efficiency A guide to reporting company
   performance, URL http//www.wbcsd.org/Plugins/Doc
   Search/details.asp?DocTypeId25ObjectIdMjgyURLB
   ack2Ftemplates2FTemplateWBCSD22Flayout2Easp3
   Ftype3Dp26MenuId3DMjMz26doOpen3D126ClickMenu
   3DLeftMenu.
5. EU Sustainable Development Online, URL
   http//sd-online.ewindows.eu.org/.
6. CERES website, http//www.ceres.org/.
7. Facility Reporting Project (FRP),
   http//www.facilityreporting.org/.
8. Emblemsvåg, J. and Bras, B., 2001, Activity-Based
   Cost and Environmental Management - A Different
   Approach to the ISO 14000 Compliance, Chapter 2,
   Section 5, Kluwer Academic Publishers.