Eco-Efficiency

 

Eco-efficiency analysis is a tool that compares two or more products or processes over the whole life cycle. The alternative that is most beneficial to the specific customer in terms of costs and environmental impacts is the most eco-efficient. The strength of the eco-efficiency analysis is that it takes into account not only the environmental impacts, but also the direct and indirect costs of the alternatives. This makes eco-efficiency a very useful tool in many situations, such as decision making, marketing, and customer relations. Eco-efficiency analysis forms a solid basis for long term decisions in many situations as it includes the costs and environmental impacts of the present situation and also predicts probable impacts and costs of future scenarios.

Who should use eco-efficiency

• Management: for strategic decisions, e.g. investments, divestment, mergers and acquisitions
• Research and Development (R&D): to evaluate research projects and in check lists used in different R&D gate models
• Production: for setting up new challenges and follow up of Key Performance Indicators
• Supply chain management: to evaluate different suppliers and to evaluate different modes of transportation
• Marketing: to address customers who value sustainability issues
• Communication: for discussion with external decision makers e.g. authorities and Non Governmental Organizations