From the archives: Eco-efficiency

Published by Paulette Fréchette on July 21, 2009

Eco-efficiency: good for business and the environment

Nearly ten years ago, in 2000, before Walmart's scorecards, the Al Gore Effect, or the general awakening of business to the opportunities of environmental and social sustainability, Five Winds International conducted a study on the burgeoning idea of eco-efficiency for the Policy Research Institute in Canada. A few years later, Five Winds developed an eco-efficiency training module with the World Business Council on Sustainable Development. The concept of eco-efficiency has been part of environmentally responsible business management now for well over a decade. Even with great change in both terminology and the strategies of business sustainability, the concept is as relevant today as it was when it was first introduced.

Entitled Eco-efficiency Global Challenges and Opportunities, the Policy Research Institute study used case studies to examine the opportunities for companies and countries that pursue eco-efficiency - i.e. producing products with less energy, less material and less pollution. The study results indicated that companies who were anticipating and implementing eco-efficiency were doing so to get out in front of the market and regulatory trends, to reduce costs, to gain competitive advantage and to ensure long-term profitability and sustainability. In addition, the study found that capital markets were increasingly evaluating environmental and sustainable development aspects of firms. The study also noted the importance of national governments supporting and promoting eco-efficiency through means such as the development of policies that encourage industry initiatives to improve performance, promoting the use of LCA, and providing incentives for environmental activities.

Today these results seem very logical and certainly companies and governments who pursued eco-efficiency have succeeded in reducing costs as well as the impacts of their operations and products. With all the market interest in green products and services and the large role the investment community is playing (i.e. through the Carbon Disclosure Project) being an early mover on eco-efficiency was a smart idea. However, when Five Winds conducted the study there were many industry and government decision-makers who thought that eco-efficiency and sustainability were corporate fads that would eventually go away. We are glad they were wrong, and we still use eco-efficiency concepts and tools to help our clients improve their performance. It is often a key step to engaging companies on more challenging aspects of sustainability such as developing innovative products and services.

For the full report and training module click here. The training module is an excellent resource for businesses that want to save money and reduce their footprint.

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