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A model for integrated assessment of sustainable development
Krajnc, Damjan, 1976- ; Glavič, Peter
The focus of the paper is on consideration of how to use indicators to monitor sustainable development in a relevant and useful manner. Integrated information on sustainable development of a company ...is very essential for decision-making since it is very difficult to evaluate the performance of the company on the ground of too many indicators. The objective of the work was to design a model for obtaining a composite sustainable development index (ICSD) in order to track integrated information on economic, environmental, and social performance of the company with time. Normalized indicators were associated into three sustainability sub-indices and finally composed into an overall indicator of a company performance. This was applied by determining the impact of individual indicator to the overall sustainability of a company using the concept of analytic hierarchy process. The demonstration of the model used data for a case study company, Henkel, and a set of sustainable development indicators that were classified using the currently most widely accepted approach of the Global Reporting Initiative (GRI). Case study was used to measure ICSD and sustainability sub-indices of the company over the time interval of 6 years. Interpretation of results is given and the utility of ICSD with its relevance for decision-making is pointed out. Using a case study, the paper demonstrates that the model can be applied to deliver composite indicators of sustainability performance of companies.
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