Valuing the earth: Economics, ecology, ethics

Abstract

Life Cycle Assessment is a well-known tool for analyzing environmental impacts on a wide perspective and with reference to a product system and economic activity. However, some extensions are needed in the approach to cope with sustainability issues. In general, the need for a novel approach that complements environmental and financial considerations is addressed in this chapter with the introduction of three new concepts: the Environmental Performance Strategy Map (EPSM); the Environmental Technology Routing; and the E3 (Environmental End-to-End) methodology. The first is a particular graphical map that permits combining the main environmental indicators (footprints) with the additional dimension of cost. The Strategic Environmental Performance Indicator is therefore introduced and defined as a single measure for sustainability. Comparison of different options for strategic decision-making purposes can be enhanced and facilitated by the use of this indicator. The Environmental Technology Routing is designed to evaluate the impacts of components and process on the EPSM. The basic idea presented is that each component of a specific product has a certain environmental burden and consequently contributes to the environmental footprints. Those contributions are identified as Environmental Performance Points (EPPs). When an item is routed through different technology processes to build the final product, it keeps contributing to the overall environmental burden. These contributions are again identified as EPP. The sum of all EPPs provides the basis for the creation of the characteristic EPSM. This new approach allows wide flexibility: the impact of changing a component, material, or a production process will be reflected immediately on the Map. Finally, these methods have been compiled in Environmental End-to-End methodology to provide the best combination of software and the aforementioned methods.