Environmental Performance Indicators for Strategic Decision Making
Case report from a.s. Norsk Leca
The scope of the case-project in a.s. Norsk Leca has been defined quite broadly. The activities considered for indicator use along the building material value chain (life cycle), has comprised all activities from raw material extraction to materials recycling after end use in buildings and roads/railways. Based on earlier LCAs, a.s. Norsk Leca’s own production facilities were considered to be the actors with the most significant sustainability impacts along the value chain. Both potential local, regional and global environment sustainability effects has been considered in the assessment and a medium term time frame (4-10 years) was selected as suitable for the assessment of strategic sustainability challenges and their strength and direction.
The following four sustainability aspects for company performance were defined:
Budget and strategy planning decisions on the top management level, on product management level, on production management level and on individual factory level were considered as significant for the introduction of sustainability indicators for products and processes.
After strict priority setting, the number of sustainability indicators were narrowed down to the following four:
- Total energy consumption : gross turnover (in kWh/NOK)
- Fossil energy consumption : Total energy consumption (in % based on energy content)
- CO2 emissions : Gross turnover (tons CO2 equiv./NOK)
- Virgin material in block production : Total material in block production (in % on a volume basis)
These indicators are intended for use on a strategic level and will also be transformed into operational indicators for the same sustainability aspects.
Product profile indicators were also developed for strategic product portfolio development discussions. A sustainability matrix was developed for the complete product portfolio, which is intended to be used as a visual and simple tool for portfolio development discussions.