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Posted on October 1, 2008 @ 09:00:00 AM by Paul Meagher
Previously I discussed macroeconomic indicators of sustainability. Today I will discuss microeconomic indicators of sustainability. These are metrics that individual businesses can use to assess their sustainability. In the list below, we have the economic objective the sustainability metrics are trying measure followed, in parenthesis, by indicators of whether these objectives are being met with the desired directionality in square brakets:
- Sustainability certification (Percent certified [+], Sustainability reporting compliance [+], Pacific sustainability index score [+])
- Zero waste (Recycling rate [+], Emissions [-], Longevity [+])
- Eco-efficiency (Recycled content [+], Intensity [-], Facility rating [+])
- Workplace well-being (Job statisfaction [+], Turnover rate [-], Commuting [-])
- Community vitality (Local procurement [+], Local economic impact [+], Community support [+], Living wage ratio [+]).
These metrics can again be used to discover and justify investments, however, these investments would be geared towards moving the business towards a more sustainable path. Green entrepreneurs can anticipate these business objectives and supply products and services to meet the increasing microeconomic demand from businesses to become more sustainable. It is critical in such cases to be able to actually measure the degree to which these objectives are being by individual businesses and to track achievement over time in light of implemented initiatives. It is also critical that businesses report to its stakeholders the scores on these sustainability metrics along with more traditional metrics of business performance.
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