Beruflich Dokumente
Kultur Dokumente
Anne Louette
Warning
This guide, Sustainability Indicators of Nations provides information from various public sources. All references appropriate
to the source(s) of information were made, and permission to data disclosure was sought during the development phase.
This survey aimed to keep the integrity of information and respect the way the contents are presented by their creators, so as
to provide the reader with an accurate picture of how these indicators have been conceived and what they are used for. The
proximity to the actual events and accuracy of the information must be credited to the source they have been taken from.
In the event the authorship of any piece of information has been incorrectly attributed or can be enhanced with useful data
and comments, we would be glad to be contacted about it. Reproduction of the contents is permitted provided the source of
the text reproduced is mentioned. Thank you.
www.compendiosustentabilidade.com.br
The online “Sustainability Compendium” makes the content of this publication available on the Internet in an
organized and periodically revised manner, allowing for the management indicators to be always updated with the
most relevant social and environmental responsibility issues in the country and in the world. The online “Sustainability
Compendium” is, therefore, part of a collective effort of managers and mentors of CSR management indicators to
broaden their use in Brazil and abroad. Its ultimate purpose is sustainable development and that Corporate Social
Responsibility practices become embedded in all levels of first, second and third sector organizations.
Bibliografia
ISBN 978-85-88262-16-4
This publication, Knowledge Management – Sustainability Compendium: Sustainability Indicators of Nations, is the second work of the trilogy, pre-
senting over 25 Sustainability Indicators of nations being applied, both in Brazil and abroad, ‘to try and pull down the old and unsustainable economy,
supported by the tragic fallacy of the GDP metrics.’
The idea is to define sustainable development patterns that take into account environmental, economic, social, ethical and cultural aspects. Hence the
need to define indicators to measure, monitor and assess such sustainable patterns, and thus guide us in our path.
While volume I is aimed specifically at managers, this publication, Knowledge Management – Sustainability Compendium: Sustainability Indi-
cators of Nations, aims to help our governments. It is everyone’s challenge, that is, the planet’s interdependency exempts no one from discussing,
facing the tasks and sharing the results.
The same way volume I raises the need for management tools to be used as a guide in the construction of our management activities to achieve the
planet’s sustainability, this publication raises the need to develop, and demand from our governments, indicators that can assess sustainability so
they can ‘serve as a sound basis for decision-making in all levels and contribute to a self-regulated sustainability of the environment and development
integrated systems’ (UN 1992)
After all, if we want to be sustainable, and demand these results from our governments, we must know how to measure sustainability. If we want to
guide the economy towards sustainable development and common well-being (decreasing poverty, promoting justice and dignity to all), rationally
channeling our production efforts to sustainable results, we must create assessment tools for these results. This is the only way to build a basis for
political decisions and development of strategies aligned with the current state of the world – of scarcity and unsustainability.
Dialogue based on ethics in order to unite three forces – the so-called first sector, or public power; the second sector, formed by the private sector,
and the third sector, represented by non-governmental organizations – will be indispensable to reach consensus about possible solutions: the ackno-
wledgement of public policy and its indicators as a means to universalize collective interests and the integration of theory and practice of economic
agents and our governments.
Not intending to present a magic, unique and uniform formula, the content invites readers to acquire knowledge that is likely to result in new ideas and
constant benefits to all involved. At the same time, methodological descriptions of the sustainability indicators of nations are not exhaustive, because
research methods are not always sufficiently defined, and the same applies to their variables, main factors, techniques and procedures.
This publication seeks to inform and promote dialogue. It deals with the dynamic transformation of the society’s own awareness. By disseminating
these concepts, we seek to offer food for thought..
Finally, volume III, to be launched in 2010, will address protagonism as a means to push forward ‘a strong civil society that allows people, even the
most vulnerable ones, to influence and monitor public policy of all levels and demand moral and financial accountability from governments for their
promises to reduce poverty and social exclusion.’
The civil society can and must donate its time, talent, experience and enthusiasm. The civil society can become organized in cooperatives, non-
governmental organizations, academic institutions and women, youth or traditional groups associations. Nevertheless, engagement is not restric-
ted to formal organizations. Countless people are involved in voluntary actions that make a difference, creating broad social networks. Many civil
society organizations have shown mobilization skills and have created demands that keep our leaders committed to a better world.
1
INTRO
Ladislau Dowbor – Ph. D. in Economic Sciences from Serge Latouche – Works on various groups on the
the Central School of Planning and Statistics of Warsaw, creation of the post development concept. He is also a
full professor at Catholic University of São Paulo-PUC, historical contributor to the magazine La Revue du M.A.U.S.S.
and consultant for several UN agencies. He has authored and professor emeritus at the Jean Monnet Faculty of Law,
‘Democracia Econômica’ (Economic Democracy), Economics and Management at the University of Paris and
‘A Reprodução Social: propostas para uma gestão at the Institut D’études du Développement Économique et
descentralizada’ (Social Reproduction: proposals for a Social (IEDS) in Paris. He is also the director of research for
decentralized management), ‘O Mosaico Partido: a economia the Group in Anthropology, Epistemology, and Economy of
além das equações’ (The Broken Mosaic: For an Economics Poverty (GRAEEP). He is an objector to consumerism and
Beyond Equations), ‘Tecnologias do Conhecimento: os instrumental rationality, against the occidentalization of the
Desafios da Educação’ (Knowledge Technologies: the planet. Latouche is one of the most important proponents of
challenges of Education), all of them published by Editora sustainable degrowth.
Vozes, ‘O que Acontece com o Trabalho?’ (What happens to
work?) (Ed. Senac), besides having co-organized the work “...it is necessary to decolonize in our imagination these economic
‘Economia Social no Brasil’ (Social Economics of Brazil) (Ed. and developmentist meanings (...) re-appropriate virtues of
Senac). www.dowbor.org communal wealth and convivial poverty in the development of
social relations, that is, a lifestyle based on the ethics of simplicity,
Lala Deheinzelin – Lala Deheinzelin is a consultant, frugality, conviviality and solidarity – what some have advocated
lecturer and cultural entrepreneur, with a transdisciplinary under the Gandhi or Tolstoy slogan ‘voluntary simplicity.”
2
INTRO
3
INTRO
Syngenta
In line with its CSR guidelines, Syngenta feels honored to lutions that continuously optimize the use of natural resources,
participate in and contribute to the production of the publi- such as water and soil.
cation Knowledge Management – Sustainability Compen-
Syngenta promotes sustainable agriculture as a key element for
dium: Sustainability Indicators of Nations.
its own business and its customers, and to ensure the society’s
As an agribusiness company committed to sustainability, future hoping to inspire other companies to engage in this sec-
Syngenta contributes to the supply of food in larger quanti- tor and harvest good results.
ties and of higher quality to future generations. One example Enjoy your reading.
is the permanent search for new technologies to provide so- Syngenta
Itaipu
Changing any situation requires taking responsibility for its cre- the natural environment when managing the world’s largest
ation. When we consider that, regardless of the role each of us hydroelectric power plant. This behavior can be seen insi-
has played, we all have contributed to the planet’s current status, de and outside its walls in the respect for partners, in its
we can become more humble and aware that it is high time we joint work with governments and society, in permanently
adopted a new attitude towards life. This is the time we feel deep feeling responsible for its initiatives or the lack of them, for
inside the urgency of an action that cannot be postponed. The we always change our surroundings, for the best or for the
change starts individually and propagates by example. worst, by action or omission.
All tools available to each segment – whether government, bu- This publication brings the best of what has been created to
siness, academia or civil society – will be useful provided their guide human life towards well-being and harmony with natu-
use is based on the best choices. Attitudes such as respect, re. We feel honored to help this Sustainability Compendium:
cooperation, carefulness and responsibility of human beings Sustainability Indicators of Nations to be inspiring to a larger
towards each other and towards Nature seem to be the basis number of people and adopted as a tool to promote the chan-
of right decisions. ges we need to be happy.
Itaipu Binacional believes in this idea. And since it was cre- Jorge Miguel Samek
ated it has focused its behavior on the human being and Brazilian Director-General of Itaipu Binacional
INSTITUTIONAL SUPPORT
4
INTRO
SESI
Presented in the “Mapa Estratégico da Indústria 2007-2015” time, raising awareness about the necessary balance of its eco-
(2007-2015 Strategic Map of Industry) – CNI (National Con- nomic, social and environmental aspects, including the need to
federation of Industry) document developed with the help of reduce regional and social inequalities.
all affiliated State Industry Federations and tens of national
It is not by chance that SESI is currently considered as an effec-
associations representing a wide range of industry sectors,
tive social policy maker and manager for the production sector,
besides outstanding business leaders – the industry’s vision
deserving society’s recognition as one of the most respected
of its perpetuity, its role in society and the sustainable de-
organizations in the social area in the country. Present in the
velopment fosters the corporate social responsibility culture
26 States and in the Federal District, its services covering 2,055
and the growing use of social and environmental manage-
municipalities, SESI is not only a pioneer in this area, but also
ment tools.
an agent of change.
In this context, the sustainability indicators presented in this
publication broaden and foster the understanding and imple- Antonio Carlos Brito Maciel
mentation of an economic model that can be sustainable along Diretor-Superintendente do SESI
Shell
The challenge faced by the world is gigantic: we must en- and inclusive future. By presenting in a structured format a
courage development and reduce poverty in a socially and wide range of sustainability tools and instruments available
environmentally responsible manner. Helping respond to in the world, the book Knowledge Management – Sustai-
this challenge and, at the same time, continuing to be a com- nability Compendium: Sustainability Indicators of Nations
petitive company forms the core of Shell’s contribution to will truly contribute to strengthening this dialogue and its
sustainable development. We seek to do it in a creative and resulting experience sharing. The challenges are big and will
innovative way, and, above all, respecting people. only be met if everyone participates, including civil society,
In this sense, we consider dialogue as key to building a solid government and business.
INSTITUTIONAL SUPPORT
5
INTRO
I welcome this Sustainability Compendium as an indispensible guide to the key new tools for management in the 21st
century. Anne Louette brings deep expertise and insight into the assessment of all these tools for measuring social and
environmental performance of companies, governments and civic organizations worldwide.
This research covers a wide spectrum, identifying the new models, metrics, indicators and methodologies employed in this
paradigm shift toward managing human societies for long-term sustainability. For the accounting and statistical profes-
sions, sustainability reporting represents the greatest revolution since the invention of double-entry bookkeeping.
The early response of statisticians, accountants, business schools and corporate management was to dismiss all the new data
and events provided by changes in the Earth eco-systems, from pollution, losses of biodiversity and desertification to floods,
fires and extreme weather variability which were the earliest signs of climate change. Today, we understand that the planet
is our programmed learning environment, teaching humans directly, holding up a mirror to our behavior, belief-systems
and values. The Earth is showing us which of our ways of being and doing are now unsustainable, from waste and trivial
consumerism to continuous quarterly rises in corporate profits and fantasies of limitless GDP-growth.
One of the deepest errors that sustainability reporting corrects is the worldwide confusion propagated by conventional
economics which equates money with wealth. As we see by the rise in commodity prices, real wealth lies in natural resour-
ces and the services that healthy ecosystems provide to humans. We are learning these lessons in multiple ways, from oil
prices and understandable resource nationalism, that has now brought over 77% of the world’s proven oil reserves under the
control of governments rather than private companies and markets. The geo-politics of the new resource scarcities have
invalidated economic textbook assumptions that air, water and biodiversity were “free goods.”
Wars and military approaches to dispute-settlement are clearly obsolete. Today we see military experts and generals on
TV warning us that there are no military solutions in Iraq, Georgia or in today’s unfolding order where the USA is no lon-
ger the world’s superpower. Multi-lateral negotiations and sustainable forms of development will continue to be the main
geo-politics of the 21st century. Today’s weapons of choice are currencies, natural resources and the race toward universal
education, scientific and technological innovation beyond the fossil-fueled Industrialism of the past 300 years – toward the
Solar Age of cleaner, greener economies that work with Nature, not against her.
Human societies have been slowly adapting to all these Earth changes – each in their own culturally determined ways. The-
se adaptation processes within governments and corporations have been encouraged by the rise of civil society: “grassroots
globalists” convened in 1999 in Porto Alegre at the first gathering of the now truly global World Social Forum. The rise of
the global information society, thanks to the internet, now is morphing into a new Age of Truth where citizens can expose
corporate and government wrong-doing and damage a company’s brand, reputation and stock price in real time.
Hence, the crucial importance of all the new models, metrics, indicators and other tools for social and environmental ma-
nagement compiled in this volume, which allows comparability, communication between practitioners and acceleration of
methodological advances.
This book also meets the needs of everyday managers, as well as academics who must rapidly overhaul curricula in business
schools worldwide. Here, Brasil has also pioneered through the ground-breaking work of the Instituto Ethos, Uni-Ethos
and such management institutes as Fundacao dom Cabral, Fundação Getulio Vargas and Amana-Key Desinvolvimento y
Educacao, Willis Harman House and the World Business Academy. New media can accelerate social learning as with my
Ethical Markets Media, LLC, in the USA and Europe and our partner, Mercado Etico in Brasil.
While corporations have made much progress in sustainability reporting, finance is still catching up: The UN Principles of
Responsible Investing (now representing $15 trillion in managed assets) and the Carbon Disclosure Project ($54 trillion) are
leading the way, together with the Equator Principles and BOVESPAS’s ISE Index. Capital asset pricing models still need
to fully incorporate environmental, social and governance (ESG) criteria, and the Global Reporting Initiative’s triple-bottom
line needs to be extended to all global corporations and security analysis.
The implosion of Wall Street’s risk-analyses models and the reckless use of leverage, derivatives, speculation and short-
selling provide a tragic lesson on the vital role of ethics and trust in all markets. The limits of greed, self-interest, envy,
avarice, accumulation, hoarding and excessive competition, all deadly sins in most religions, are now clear. And at last, after
decades of effort, the childish fantasies of an ever-growing GDP are facing up to reality.
6
INTRO
I was present at the signing of Agenda 21 in Rio de Janeiro in 1992 where over 170 countries agreed to overhaul their GDP
accounting. I presented at the European Parliament’s “Taking Nature into Account” conference in 1995. I created the
Calvert-Henderson Quality of Life Indicators with the Calvert Group in 2000 (updated regularly at www.calvert-henderson.
com). I was honored to present these indicators at the Parliament of Latin America, EUROSTAT and many other venues
in China, Japan, Australia, and in 2003 in Curitiba at the ICONS conference where 700 business leaders and statisticians
endorsed the many new “quality of life” metrics needed in national accounts (“Statisticians of the World Unite!” at www.
hazelhenderson.com).
In 2007, I co-organized the “Beyond GDP” debate in the European Parliament where another 700 members of parliament
and statisticians endorsed all these same corrections to GDP. Globescan of London and Ethical Markets Media, LLC, con-
ducted a survey in 10 countries for the European Commission on the Beyond GDP issue. Huge majorities in all 10 coun-
tries, including Brasil (69%) supported correcting GDP to help steer countries toward sustainability (www.beyond-gdp.eu).
Even the USA is awakening, and the Senate held hearings in March 2008 on “Re-thinking GDP.”
With this important Sustainability Compendium, all these issues from local to corporate to global come together in a superb
overview to guide us to a better future.
Hazel Henderson
St. Augustine, Florida, September 2008
7
INTRO
8
INTRO
Creative economy and the reinvention
of the economy
Evolution occurs in leaps and we are in the middle of one. And this is a huge leap that sets the transition of centuries, or even millenniums,
when life was organized around material, tangible matters to an era when the intangible plays an increasingly central role. This is also a
time of natural resources crisis, because land, gold and oil are finite and are being depleted, thus strengthening the importance of intan-
gible resources. Knowledge, culture and creativity not only are resources that cannot be depleted, but the only ones that are renewed and
multiplied by use. If I share an apple with you, each one of us gets half of it. If I share my knowledge with you, it triples: we get mine, yours
and the result of our interaction.
Whereas the tangible/material is finite and limited, the intangible is elastic, unlimited, and can be the way to more inclusive models based
in cooperation. When added to the digital technologies (bits are also infinite), we get a myriad of collaborative options and a new term can
be coined: ‘abundance economy’ – which may originate more solidary lifestyles.
Furthermore, activities based on intangible resources are multi-dimensional and can influence the four dimensions of sustainability: econo-
mic, social, environmental and symbolic/cultural. They sure have a strong economic impact, but can go beyond that, acting as an environ-
mentally correct social interaction factor that strengthens values, edges and credibility of communities and companies.
In theory, it all sounds wonderful, representing a potential that reminds us of a hen that lays golden eggs. The fact is, if we remain stuck with
old models, our policies and structures will end up in a chicken soup of the hen that lays golden eggs.
blic-private sectors, third sector and creative entrepreneurs become aware of the change of times we are going through, the huge potential
if offers, and the necessary shift in mentality and policies so we can take advantage of it. A core theme is the need to change wealth indica-
tors and measurement and assessment methods. Trying to quantitatively measure the intangible resources or the four dimensions of sustai-
nability is like trying to measure water with a measuring tape. It is impossible. We cannot measure multidimensional things in a linear way.
The economy itself calls for revision, since one of its definitions used to be ‘scarce resources management.’ Creativity and culture are abun-
dant resources, mainly in the Southern hemisphere countries, and are an enormous asset that may lead to a thorough change in the concept
of wealth and poverty. Resources go far beyond the idea of having money, and besides the economic dimension, should include the cultural,
social and environmental dimensions as well.
Practice shows that the sustainable development equation is not simply economic. Each dimension has its own capital: human capital, cul-
tural capital, social capital, environmental capital. This leads to a little known and studied currency exchange: investment made in monetary
currency, for instance, may have a return in social currency; investment made in environmental currency may have a return in symbolic
currency, and so on. Examples such as the music from the State of Pará in Brazil or audiovisual arts from Nigeria show how such conversion
of ‘currencies’ works: the key success factor in these models lies in distribution, because these products are sold by street vendors. In this
process, the monetary currency resulting from copyright is not received, but the visibility-currency is received, making the authors well
known and desired, enhancing their market, which in turn generates the constant innovation currency, thus creating a broad and dynamic
process that eventually generates monetary currency.
Measuring the intangible also implies shifting from an exclusively quantitative vision to one that includes the qualitative. The focus on
results must be broadened to include the assessment of impacts: checking what has changed and the resulting benefits in other dimensions
besides the economic one. Assessing results of music programs in the slums, such as the Affroreggae project, by the number of musicians
that became professionals is like measuring liquid with a measuring tape. How much is the self-esteem of a community worth? How much
are spared lives worth? How much is believing in the future worth?
Assessing and measuring creative and cultural activities requires parameters yet to be developed. For instance, the dance economy is little,
maybe just the small sum of dancers, choreographers and performances. However, the economy of ‘dancing’ is large because it includes
festivals (such as Carnival); nightlife; the entire fitness structure and respective equipment, rooms, contents, costumes, and so on.
The same way that, at the micro level, local projects development and their assessment and measurement methods should be multidimen-
sional and have their ‘capitals’ and ‘currencies’ to represent such dimensions, the macro level should also have wealth and development
indicators to assess governments and nations.
Comprehensive indicators must include natural and cultural wealth and diversity – the pillars of professional and personal relations: ethics,
self esteem, solidarity, trust and other factors that ensure quality of life in a broader sense as proposed by the Gross National Happiness
Index from Bhutan.
After all, for the first time in history we have resources, knowledge and people to create the world we want and deserve. It is a rare oppor-
tunity – made even more urgent and explicit by the crisis caused by the predatory ‘financialism’ – we can seize by reinventing the economy.
We are ending an era of great innovation, when several factors and languages had to become more ‘economy-oriented’. From now on, the
Economy will have to broaden its own sense to justify the Eco it bears – originated from the Greek word Oikos (house, home) as in Ecology.
A New Economy to manage the abundant resources offered by the intangible resources and technology, in a world based on the perception
of our inter-dependency and, consequently, aware that the answer lies in cooperation. A new Inclusive economy, whose dynamics will
result from the harmonious relationship between the macro economy of scale and the micro economy of niches. A new economy that will
require new measures, currencies and indicators.
Lala Deheinzelin
9
INTRO
Ladislau Dowbor
If we want to guide the economy, rationally channeling our production efforts to desired results, we must build assessment
tools for such results. Celso Furtado uses the ‘social profitability’ concept, which despite saying fundamental things, may
lead us to mistake the vision of macroeconomic productivity for that of the productivity of sectors usually identified with
the ‘social’ sphere, such as education, health, etc. The systemic productivity2 concept may be more explicit2.
The basic logic is simple: when a large soybean producer forces small farmers away from their land to suburban areas, we
may say there has been an increase in grain production by hectare and agribusiness productivity. The businessperson may
say that he has enriched the town. However, if we measure the costs generated for the society with the slums created and
water pollution, for instance, or even the discomfort of families expelled from their land and unemployment, the result is
quite different. By calculating soybean production increase, but deducting society’s indirect costs, the systemic balance will
be more comprehensive and technically correct. In other words, we must evolve towards an accounting that shows results
in terms of quality of life and actual social progress.
Similarly, when a country sells its natural resources, its accounts shows it as GDP increase, when in fact the country is
selling its inherited natural resources, which was not produced and will not be replenished. Therefore, the country is deca-
pitalizing itself, increasing its short-term wealth at the expense of future difficulties.
What we have inherited, methodologically speaking, is the national accounts system developed in the 1950s by the United
Nations, and altered in 1993, which provides us with the well-known GDP – the sum of values and costs of goods and
services production – therefore restricted to commercial activities. We will not describe here the limitations of this me-
thodology, already obvious3. What matters is that from the 1990s on, with the concepts of Amartya Sen4 and the Human
Development Index (HDI) methodology, there has been a radical inversion: the human being is no longer regarded as a tool
to serve companies – at that time the World Bank said education was good because it would increase business productivity
– but as the primary objective. In other words, the social aspect is no longer a means to ensure economic objectives; much
on the contrary, the economy becomes a means to improve people’s quality of life. A life with health, education, culture,
leisure, safety, is what everyone expects. The economy must serve these social objectives.
Quality of life is clearly harder to be measured than a company’s total sales volume, or a public school’s overhead, let alone
the economy of volunteer work or household labor. The truth is that as long as we do not adopt generally accepted and
standardized methods to measure the bottom line of our activities, we will neither be able to assess public nor private
policy. Currently, making use of and going beyond the HDI methodologies, we have moved way ahead. Jean Gadrey and
Florence Jany Catrice’s book, Les Nouveaux Indicateurs de Richesse (the new wealth indicators), presents an extremely well
organized systematization of the new conceptual framework for national accounts being devised5. In this way, there is a
distinction between production accounting (outputs) and actual results in terms of social values (outcomes); economic, so-
cial and environmental indicators; objective indicators (such as infant mortality rate) and subjective ones (level of satisfac-
tion); monetary and non-monetary results. This has led to the development of several methodologies that are currently well
structured, such as the Index of Economic Well-being (IEWB) by Osberg and Sharpe, the Index of Sustainable Economic
Welfare (ISEW), the Genuine Progress Indicators (GPV), the World Bank’s Genuine Savings Indicator (GSI), and others.
10
INTRO
Of special interest, the methodology adopted by Calvert-Henderson Quality of Life Indicators: a New Tool for Assessing
National Trends6, is a true review of national accounts applied to the United States. Instead of simply summing up the
monetary results, the accounts are broken down in 12 domestic sectors, including income, but also human rights, public
safety, environment, and so on. As a result, North-Americans have, for the first time, a tool to evaluate how and in which
areas the country is improving (or getting worse). Neither new indicators nor new surveys were required. The most reliable
existing data were selected and tabulated according to the major axes of practical results expected by the population.
The World Bank itself is rethinking its methodologies. In the World Development Indicators 20037 Table 3.15 that assesses
savings, the Bank now records timber extraction, for instance, not as a positive figure (GDP increase), but as decapitalization
of he country. Following the same logic, oil-exporting countries are now regarded as depleting their natural capital, thus
showing negative savings rate. As for the car manufacturing sector, additional pollution-related health costs are now deduc-
ted. Considering the strong inductive effect of the World Bank’s methodologies, this openness is welcome and will influence
national accounts in several countries.
It is also worth mentioning the work Survey of Existing Approaches to Measuring Socio-Economic Progress, prepared by
INSEE, in Paris, OECD staff and other institutions. The document presents a review of the progress in the development of
methodologies in 20088. The participation of the World Bank, OECD and recent collaborators such as Stiglitz and other
economists attests the maturity and openness to change achieved in the debate.
There are other similarly creative and very practical solutions. In the region of Cascavel (State of Paraná, Brazil), for ins-
tance, 22 towns started developing local quality of life indicators9. 26 relatively simple indicators help evaluate whether the
population’s situation is improving or not, year by year. In this way, people can make informed decisions when voting accor-
ding to actual results in their lives and not according to who has given away more electoral campaign T-shirts. The innova-
tion has not demanded major changes in the calculation, because existing data was used, but it meant a significant political
shift: the information is organized for the population and the data surveyed are those of highest interest to the population’s
quality of life. In other words, economic accounts become a citizenship tool, and the initiatives of several public and private
actors can be evaluated in terms of final results for the society, at least in a more circumscribed territory, where people can
more easily take part in decision-making processes.
Anyway, what we are saying here is that a change in the focus of economic accounts is essential. A bank that misappropriates
our savings and invests them in speculative financial investment shows high profit, which in turn increases the GDP, but
reduces our systemic productivity by decapitalizing the communities and reducing the productive use of our savings. The
German system of financial intermediation, based on small local economic savings, shows small profits, but channels the sa-
vings to socially useful investments, generating better life conditions to all10. ‘Profit’, according to this vision, must be social,
and productivity must be systemic. The evolution of economic sciences towards this comprehensive accounting, rather than
a microeconomic one, is a major advance.
In broad terms, a major advance in economic sciences is the radical change in the way we organize information around results
achieved. While the measure was limited to adding companies’ production value and public services costs, we naturally believed
progress exclusively resulted from business profit, and also that public services were a burden. When we adopt the systemic
evaluation of results for the society as a whole, we reach an intelligent vision of the actual progress achieved. The development of
more realistic evaluation systems of our economic and social progress corrects a structural flaw in economic sciences.
Most of our feeling of impotence before the economic dynamics derives simply from the lack of tools to know the actual
contribution of the different activities to our well-being. The media hysterically demands a few extra percentage points in
the GDP increase, which intensifies the generalized anxiety over unemployment, and distracts our focus from the main
objective – society’s quality of life – leaving everyone confused and misinformed. Of course, badly informed people do not
participate in anything. There is no economic democracy without adequate information about the dynamics and results that
really matter. The development of new indicators of wealth is a particularly important axis in this direction.
Referência
http://dowbor.org
(6) See Hazel Henderson, Jon Lickerman and Patrice Flynn (editors) – Calvert Henderson Quality of Life Indicators: a new tool for assessing national trends. www.
calvertgroup.com
(7) See World Bank – World Development Indicators 2003, Washington, 2003, page 174
(8) See http://www.stiglitz sen fitoussi.fr/documents/Survey_of_Existing_Approaches_to_Measuring_Socio-Economic_Progress.pdf
(9) See Conceito e Metodologia de Aplicação (Application Concept and Methodology) – Versão 1, October, 2001 (paper).
(10) See The Economist, June 26th, 2004, p. 77. (The Economist naturally laments that German regional legislators ‘refuse to authorize the sale of savings institutions,
owned by local communities, to private sector buyers’).
11
INTRO
“The social indicator only indicates; it does not replace Following that, in the Brundtland Report (1983) – also
the concept it originated from.” known as Our Common Future, by the United Nations
(Januzzi, 2002) World Commission on Environment and Develop-
ment – the human dimension was strongly enhanced in
“It’s necessary to reflect in order to measure, not to the concept of sustainable development. Besides the en-
measure in order to reflec.” vironmental problems, Brundtland Report showed the
(Bachelard) need for an international awareness of the ‘human con-
dition deterioration’, mainly in terms of extreme poverty
and inequality.
The “environmental, social and economic’ tripod was ac-
cepted and formalized in the United Nations Conferen-
ce on Environment and Development (Earth Summit -
1992), held in Rio de Janeiro in 1992. In this Conference,
1,600 scientists, among whom 102 Nobel Prize laureates
from 70 countries, launched the document ‘World Scien-
tists’ Warning to Humanity”. It warned that: ‘Man and
nature are in a head-on collision. Human activities inflict
harsh and often irreversible damage on the environment
and on critical resources. Mankind must change; changes
must be made immediately in order to reverse the fate of
The Meadows et al. (1972) report, entitled The Limits to a head-on collision”. At the time, the need to develop indi-
Growth, challenged the idea that economic abundance cators able to measure sustainability was raised, since the
and industrial growth had no frontiers: ‘If the present tools available, among which the GNP, did not provide
growth trends in world population, industrialization, enough data for analysis.
pollution, food production, and resource depletion conti- The Conference’s resulting document, Agenda 21, highli-
nue unchanged, the limits to growth on this planet will be ghts in its chapter 40,: “Commonly used indicators such
reached sometime within the next 100 years. The most as the gross national product (GNP) and measurements
probable result will be a sudden and uncontrollable decli- of individual resource or pollution flows do not provide
ne in both population and industrial capacity.’ However, adequate indications of sustainability. Methods for asses-
along with this distressing scenario, the Meadows Report sing interactions between different sectoral environmen-
had already found the key to sustainable development: ‘It tal, demographic, social and developmental parameters
is possible to alter these growth trends and to establish are not sufficiently developed or applied. Indicators of
a condition of ecological and economic stability that is sustainable development need to be developed to provide
sustainable far into the future.’ solid bases for decision-making at all levels and to con-
A short time later, a publication by the International tribute to a self-regulating sustainability of integrated en-
Union for Conservation of Nature and Natural Resources vironment and development systems” (United Nations,
– IUCN – also used the term ‘sustainable development1’ 1992). Since the Agenda 21, 178 signatory countries have
to describe the necessary development model to preserve agreed to correct distortions resulting from evaluations
the planet’s richness. based exclusively on the GNP.
(1) Sustainable development: the idea initially came from the Limits to Growth Report written by the MIT (Massachusetts Institute of Technology), which was
commissioned by the Club of Rome, founded by Aurelio Peccei, and later from the ecodevelopment concept proposed in 1970 by Maurice Strong and Ignacy Sachs, during
the first United Nations Conference on Environment and Development – UNCED (Stockholm, 1972), which originated the United Nations Environment Program – UNEP.
In 1987, the World Commission of Environment and Development, chaired by the Norwegian Prime Minister, Gro Harlem Brundtland, adopted the sustainable development
concept in its report entitled Our Common Future, also known as the Brundtland Report.
The concept was definitely incorporated as a principle during the United Nations Conference on Environment and Development, the 1992 Earth Summit – Rio-92, in Rio
de Janeiro. (www.wikipedia.org.br)
12
INTRO
GDP – Gross Domestic Product – is the most widely tal areas have participated. A large number of proposals
used economic activity indicator. It is in the core of all have been developed.
Systems of National Accounts, and its methodology is
Despite all these initiatives, neither a personal measure nor
strictly defined and regulated, allowing international
a set of indicators have been broadly acknowledged within
comparison and aggregation. GDP combines in a single
the political context and by the general public. Perhaps this
indicator the total market value of all final goods and
is because there has been little consensus about fundamen-
services produced in the economic territory of a country
tal concepts or lack of the analytical simplicity that ensured
within a certain period of time. In most cases, it is calcu-
GDP’s success.
lated on a quarterly or annual basis. GDP changes along
time are the main indicator of macroeconomic activity However, the results of these events show a gradual increa-
growth (www.beyond-gdp.eu). se in the process of warning about the dangers of the GDP,
starting by the warning made by one of its chief architects
Since then, at the dawn of this century, several nations Simon Kuznets (1901-1981), Nobel Prize of Economy lau-
have made serious commitments in this direction in reate in 1971, who cautioned in a 1932 report to the US
numerous global events. Congress that ‘the welfare of a nation can scarcely be infer-
It is also worth mentioning the pioneering contribution red from a measurement of national income.’
of the Measure of Economic Welfare (MEW), by William
Nordhaus and James Tobin (1972). REFERENCE
Information gathered at the France Libertes Fondation
GDP’s shortcomings started to come out, becoming incre- Danielle Mitterrand website www.france-libertes.fr, and
asingly evident at the following events: websites www.stiglitz-sen-fitoussi.fr and www.beyond gdp.eu.
• UN Earth Summit in Rio de Janeiro, 1992;
• Conference sponsored by the European Parliament on the
theme ‘Taking Nature into Account’, 1995;
• ‘Beyond Growth: Policies and Institutions for
Sustainability’, in Santiago, Chile, 1998;
• ‘World Summit on Sustainable Development’, in
Johannesburg, 2002, the so-called Rio+10;
• UN Convention on Biological Diversity, in which the
Millennium Development Goals were set, in Kuala Lumpur.
13
INTRO
14
INTRO
15
INTRO
16
INTRO
goods (bottled water, energy, green areas). illusion. According to Serge Latouche, this ‘new economy’
is, in fact, relatively immaterial or less material, but rather
Manfred Max Neef’s economy is based on six principles: than replacing the old economy with the new one, what we
1. The economy must serve the people, rather than the people find are complementary relationships between them.
serving the economy. In other words, we have broken the planet’s natural life
2. Economic development is about people and not objects. cycle and do not respect it anymore (See the four system
conditions at The Natural Step – tool 6.13 in ‘Knowledge
3. Growth is not the same as development, and development Management – Sustainability Compendium: Social and
does not necessarily require growth. Environmental Responsibility Management Tools’).
4. No economy can exist in the absence of eco-systems. • There is no preservation of Nature’s potential for the
5. An economy cannot have infinite potential, because it exists production of renewable resources (due to systematic
in a finite sub-system of the biosphere. increases in concentrations of substances extracted from
the Earth’s crust by the society);
6. Under no circumstance can any economic process or
interest be above life. • There is no limit to the use of non-renewable resources;
• There is no respect for the capacity of natural cycles to
Current life is totally contrary to these principles. renew themselves (due to the increasing production and
concentration of harmful substances produced by the
IMPACT OF ECONOMIC GROWTH ON OTHER society)
FORMS OF WEALTH ECONOMIC GROWTH AND We do not intend to list here the mounting troubles, but it is not
RESPECT FOR THE ENVIRONMENT by chance that humankind has seen for the first time in history
in a single decade so many gigantic world forums to assess
The industrial development model followed by western issues such as:
countries and based on the orthodox economic theory has • The planet’s environmental depletion (Rio-92);
far too often neglected the impact of economic growth on • Human rights scandals (Vienna-93);
other forms of wealth and well-being. Today, this negligen-
• Demographic boom (Cairo-94);
ce is implicit in most economic debates. In fact, analysts
have for a long time acknowledged the need to take into • Social crisis, currently unsustainable (Copenhagen-95);
account the effects of human economic activity on non- • The tragedy of women stuck in the trap of economic
renewable natural resources. transformations and family breakdown (Beijing-95);
• The global rural exodus that is leading to sprawling cities
In order to reconcile the two opposing imperatives of gro- (Istanbul-96).
wth and respect for the environment, experts believe they
have found the elixir in ecoefficiency, the cornerstone of The UN Human Development Report regards as obs-
‘sustainable development.’ It is all about progressively redu- cene the fortunes of a handful of just over four hundred
cing the ecological impact and intensity of natural resour- people in the world, who possess a fortune equivalent
ces depletion up to a level considered compatible with the to that of about half of the poorest population of the
planet’s acknowledged replenishing capacity. planet. 2% alone hold half of the world’s wealth; the 50%
poorest account for only 1% of the planet’s wealth. This
It is unequivocal that ecoefficiency has improved dramati- wealth accumulation is considered as shameful as sla-
cally, but at the same time, the perpetuation of uncontrol- very and colonialism, with no place in a civilized society.
led growth leads to global degradation. [DOWBOR, Ladislau. Gestão social e transformação da
NOTHING IS CREATED...
sociedade (Social management and society transforma-
tion). In: DOWBOR, Ladislau and KILSZTAJN, Samuel.
• The decrease in impacts and pollution per product unit
made is systematically invalidated by the multiplication of
Economia social no Brasil (Social Economy in Brazil). 1ª
units sold – a phenomenon called the ‘return effect’. ed. São Paulo: Senac, 2011, v.1, p. 17-42)
17
INTRO
(1) Oxymoron is a deliberate combination of two words that seem to mean the opposite of each other and make up a third concept to be understood at the reader’s discretion.
18
INTRO
19
INTRO
OECD AND UN
20
INTRO
The United Nations Conference on Environment and plementation of the Agenda 21 and the Rio Decla-
Development - UNCED (Earth Summit - 1992) raised ration on Environment and Development, as well
the need to develop indicators able to measure sustai- as the implementation of the agreements at the
nability, since the tools available, among which the GDP, local, national, regional and international levels re-
did not provide enough data for analysis. affirmed at the World Summit on Sustainable De-
velopment (WSSD), held in Johannesburg 10 years
The Conference’s resulting document, Agenda 21 – later to evaluate the full implementation of Agenda
chapter 40, highlights: ‘Commonly used indicators such 21 and the Commitments to the Rio principles.
as the gross national product (GNP) and measurements
of individual resource or pollution flows do not provi- The Johannesburg Plan of Implementation, (Chap-
de adequate indications of sustainability. Methods for ter X), and the Commission on Sustainable Deve-
assessing interactions between different sectoral envi- lopment (CSD), at its 11th and 13th sessions, encou-
ronmental, demographic, social and developmental pa- raged further work on indicators for sustainable
rameters are not sufficiently developed or applied. Indi- development by countries, in line with their spe-
cators of sustainable development need to be developed cific conditions and priorities. CSD-13 invited the
to provide solid bases for decision-making at all levels international community to support efforts of de-
and to contribute to a self-regulating sustainability of in- veloping countries in this regard.
tegrated environment and development systems’ (Uni- The third, revised set of CSD indicators was finalized
ted Nations, 1992). in 2006 by a group of experts from developing and
Since the Agenda 21, 178 signatory countries have agre- developed countries and international organizations.
ed to correct distortions resulting from evaluations based The revised edition contains 96 indicators, including
exclusively on the GDP. For this purpose, data on social a subset of 50 core indicators. The guidelines (www.
and environmental resources should be added and data on un.org/esa/sustdev/natlinfo/indicators/guidelines.
predatory activities and wasteful use of resources should pdf) on indicators and their detailed methodology
be subtracted, among other distortions. Only then can sheets (www.un.org/esa/sustdev/natlinfo/indicators/
sustainability and development standards that include methodology_ sheets.pdf) are now available as a re-
economic, social, ethical and cultural aspects be defined. ference for all countries to develop national indica-
tors of sustainable development.
The UN Commission on Sustainable Development
(CSD) was created in December 1992 at the United The CSD indicator set is based on the previous two
Nations General Assembly meeting to ensure effective (1996 and 2001) editions, which have been develo-
follow-up to the UNCED. ped, improved and extensively tested as part of the
implementation of the Work Programme on Indi-
It is responsible for monitoring and reporting on the im- cators of Sustainable Development.
21
INTRO
Bhutan’ good results made the UN consider its imple- a peaceful political transformation from absolute monar-
mentation in other countries. An International version chy to parliamentary democracy with a gradual set up of
is being developed in Canada to be implemented this democratic institutions and practices. He emphasized the
year. According to Michael Pennock (Director of the need to ‘deepen and strengthen democracy to the grass
Population and Public Health Observatory at the Van- root level and empower people’, which will not only help
couver Island Health Authority in Canada, who worked achieve the MDGs but also strengthen the democratic
on the development of the Genuine Progress Indicator process. Mr. Chhibber highlighted the need for targeted
from Canada and is a UN consultant for the develop- programs that will deliver development benefits directly
ment of the GNH indicators in Bhutan), the GDP me- to the poor, enhancing their human development and
trics are too narrow as a well-being measure. ‘We must addressing the root causes of their impoverishment. Such
rethink the way we measure progress. The GNH is more intervention, he said, will help address the contrasts across
comprehensive than the GDP and, differently from what districts on a number of MDG target areas such as poverty
many would think, is based on scientific methods rather incidence, child malnutrition, food security, net primary
than on philosophical or moral assumptions.’ education enrolment and access to safe drinking water.
Bhutan is among the few countries that have been making Also speaking at the occasion, the UN Resident Coordina-
good progress in achieving the Millennium Development tor, Mr. Nicholas Rosellini, said that Bhutan’s success story
Goals. According to the latest report ‘Bhutan’s progress: on the MDGs is attributed to the strong political will and
Midway to the Millennium Development Goals’ commitment of the Government in integrating the MDGs
http://www.undp.org.bt/mdg/MDG_ into the national planning framework. He highlighted the
synergy between Bhutan’s development approach of Gross
Midway.pdf, which was launched in Thimphu in No-
National Happiness and the Millennium Declaration, and
vember 2208, Bhutan has already achieved three of the
said that the ‘Millennium Declaration is guided by the uni-
MDG indicators and is on track to meet most of the
versal values of freedom, equality, tolerance, respect for na-
other targets by 2015.
ture and shared responsibilities – ideals which are integral
In a keynote address at the launch, the UN Assistant Se- to Bhutan’s development approach of Gross National Ha-
cretary-General and Regional Director, UNDP, Mr. Ajay ppiness’, which has helped pave the way for Bhutan’s pro-
Chhibber, said that Bhutan presents an exemplary case of gress in the MDGs.
22
INTRO
Since 1990, the UNDP Human Development Index has re. Maybe the most well known distortion, presented
been annually measured and published. Besides the by philosopher Isaiah Berlin in 1956, is the ‘preference
GDP, the HDI aggregates composite indices including adaptation’. It says that people who endure long perio-
life expectancy and education level. The last ranking ds of deprivation develop defense mechanisms against
places Norway first whereas the USA ranked 10th, 6 pla- hardships. They learn how to be content with little.
ces below the GDP per capita ranking. France ranked They do not mind life is hard. When asked about life,
16th. they minimize the problems and, as a rule, show a high
level of happiness.’
‘The UN welcomes this indicator, says the economist
Flavio Comim, of the United Nations Development ‘The problem lies in the fact that the GNH is not only
Programme (UNDP). ‘There are many similarities be- proposed as a measurement of well-being, but, like the
tween the GNH and the set of UN human development GDP, it is regarded as a guide to public policy. What
indicators (such as the HDI - Human Development should we do about those extremely poor people who
Index). Both go beyond income (and GDP) as a well- say they are the happiest people in the world? Should
being measure. Both are concerned with the individual we neglect them? We know we cannot do that. We also
and the multiple dimensions of well-being. Both respect know that only a measure that shows the objective de-
people’s autonomy as the ultimate expression of deve- privations endured by people can bring back a stand
lopment.’ that prioritizes human rights over frivolous preferences.’
‘Nevertheless, the GNH presents some constraints inhe- ‘The GNH is a good starting point, but not necessarily
rent to subjective metrics. Happiness is an intuitive the end. It has some good points that should be used so
concept common to all human beings, but its measu- we can have a better and more equitable measure of
rement is prone to biases, often of psychological natu- well-being’, says Flavio Comim.
23
INTRO
24
INTRO
balance allows good representation of information be- an abstraction from reality, given that from a Buddhist
tween the objective and the subjective. view, they do not exist. What exists in a fundamental
way is relationality (as opposed to subject and object) at
When measuring objective conditions such as educa-
all levels, which can only be assessed by a broad range
tional and medical facilities, or room ratios etc., mea-
of social, economic, cultural, and environmental indi-
sure of the psychological or subjective experience that
cators. Seen in this way, happiness and well-being is
accompanies this condition is important. For example,
ultimately a way of being that is affected by and affects
a student attends a school that scores highly in the con-
relational quality, which changes in meaning over time
ventional educational statistics, but he/she subjectively
with deepening sensitivities to the world around us and
views the educational experience as entirely deficient—
with our understanding of what is important or valuable
the teachers might be oppressive, or the classroom ten-
for us and for all sentient beings.
se. In other words, the process of obtaining the edu-
cation, including the classroom experience, does not Dasho Karma Ura - Butan
promote a sense of well-being in the student, despite
the school’s apparent high objective performance. Self
reporting of experiences along with objective statistics
therefore provides a more accurate picture of well-being
than the objective statistics alone.
As indicators reflect values, and shape programmes,
they become a vital link in providing feed-back on the
effectiveness of existing policies and programmes and
‘feed-forward’ into programme implementation, there-
by allowing the values they embody to be infused into
policies and programmes in a broad based manner.
Thus, in the case of using GNH indicators as evaluative
tools, they can be used not only to check whether pro-
grammes are consistent with GNH indicators but also
to create conditions for a coherent, organic relationship
between professed values on the one hand and actual
policies, programmes and projects on the other. The
ramification of pursuing such an organic relationship
should be recognized for the polity of Bhutan as a who-
le: if it is done successfully, it means that the country’s
economic, political, social, environmental, cultural and
technological environments will be penetrated by GNH
values, and that there will be a natural coherence to the
country’s policies that reflect its cherished values.
At the same time, from a Bhutanese cultural perspective,
it must be understood that the subjective versus objective
distinction is merely a heuristic device that does not in any
fundamental sense represent what is basic to the nature of
reality. The interdependence of all things, and the non-abi-
ding self of everything, is a key concept. The conventional
subjective versus objective division is an abstraction from
what is actually inter-relational. For GNH indicators, this
cultural concept means that seeing everything as relatio-
nal is more useful than seeing them as separate categories.
In fact, happiness itself dwells in the experience of quality
of relationship. Thus, the various domains are not simply
separate conditions of happiness in and of themselves. Ra-
ther, it is the intimate inter-relationship among these do-
mains that is significant.
The GNH index construction aimed at a deeper repre-
sentation of well-being than conventional indicators.
The distinction between subjective and objective is but
25
2
Indicators and Indices
Indicadores e Índices de Sustentabilidade de Nações
1. Bellagio Principles 28
2. IDH + IPH + IDG + MPG 30
3. GNH – Gross National Happiness 37
4. BIP 40 - Baromêtre des Inegalités et de la Pauvreté 40
5. BCN – Balanço Contábil das Nações 42
(Balance Sheet of Nations)
6. BS - Barometer of Sustainability 44
7. Calvert-Henderson Quality of Life Indicators 47
8. DNA Brasil 48
9. DS – Dashboard of Sustainability 51
10. EF – Ecological Footprint 54
11. EPI – Environmental Performance Index 57
12. ESI – Environmental Sustainability Index 60
13. EVI – Environmental Vulnerability Index 62
14. GPI – Genuine Progress Indicator (IPR) 64
15. GSI – World Bank’s Genuine Saving Indicator 66
16. HPI – Happy Planet Index 68
17. IDS – Indicadores de Desenvolvimento Sustentável IBGE 70
18. IEWB – Index of Economic Well-being 72
19. IPRS – Índice Paulista de RS (São Paulo State 74
Social Responsibility Index)
20. Isew – Index of Sustainable Economic Welfare 76
21. ISH – Index Social Health 78
22. LPI – Living Planet Index 79
23. RCI – Responsible Competitiveness Index 80
24. SF – Social Footprint 83
25. WN – The Well-being of Nations 85
26
Intro 1
Redefining Progress
What are we doing with our survival in this planet? What are we doing with our species?
Our (economic) thermometers no longer Most experts agree that we need to social and environmental variables in
allow an accurate reading. They are lite- update our economic metrics, and they the production and economic develop-
rally making us sicker. They are leading are working in this direction. These stu- ment model adopted.
us to the wrong direction. We must cor- dies are increasing in number and depth,
The trade/financial model that is spre-
rect the route for the sake of our survival. and the UN has been the main supporter
ading around the world worsens ine-
of this process, in an attempt to include
This distortion comes from the fact that qualities, threatens our survival and the
social and environmental variables in su-
the generations and societies that pre- cohesion of our societies. Redesigning a
ggested national accounting principles.
ceded us did not have the same proble- social, environmental and political pact
ms. Production was the key point. That There is a large number of initiatives worldwide would mean changing our
explains the GDP metrics, which was that create “alternative economic in- vision and ways of thinking, rethinking
exclusively focused on the monetary dicators” aimed at improving the GDP the wealth that will add true value to
amount produced in the post-war pe- metrics by incorporating, in most ca- life. Finally, a new accounting and new
riod. In other words, the GDP was cre- ses, new economic, environmental and statistics will allow a different reading to
ated to be a measurement tool directly social sustainability measures into the our routes, in line with our social and
determined by the cost of manufactu- data, besides including happiness / qua- environmental challenges and self-des-
ring industry and the war. lity of life assessment parameters. truction risks.
Currently, due to the big environmental The objective is to offer more com- Nowadays, one of the clearest pieces
and human challenges we face, we need prehensive economic data that can be of evidence, provided by international
new thermometers that can help us more intelligible to the population and studies on future risks (global warming,
change our production and consump- more relevant to policy makers, by taking poverty, water scarcity…), is that it is
tion models, adjusting them to the natu- into account factors like environmen- not a question of technical, monetary or
ral resources available. It is a considera- tal degradation and quality of life, thus physical problems. It is all about politi-
ble change in the way of life, a change in changing our political priorities to build cal choices.
attitudes regarding the structure and the more equitable and happy societies.
And we are the ones to choose the poli-
dimensions of a development model, as
The biggest challenge is to reach a con- ticians that will make these choices.
well as more appropriate regulatory ins-
sensus on the ways to assess and mea-
truments. It is no longer an alternative
sure the objective – not the subjective – Tip
activity, but a vital need.
perceptions of well-being, rating them,
The current financial crisis, which has as it was done in the HDI measures of Global Directory to Indicator Initiatives.
been shaking the world economy, shows education, health and standards of li- Compendium of Sustainable Develop-
that our economic metrics are deficient. ving. We must raise the status of these ment Indicator Initiatives is a worldwi-
We now have, therefore, a unique op- indicators to the level enjoyed by the de directory of sustainability indicators.
portunity to change this situation. If we GDP today. It is an initiative carried out by several
want to be sustainable and have quality partners and donors, including the In-
These are constraints currently faced ternational Institute for Sustainable De-
of life, we need reliable indicators that
when trying to monetize public goo- velopment (IISD), Environment Canada,
can lead us to this direction. After all,
ds, such as water and air: exhaustion Redefining Progress, World Bank, and
what matters has to be measured, and
of natural resources by predatory ex- the United Nations Division for Sustai-
what is measured is manageable.
ploitation, environmental degradation nable Development.
It is high time we reconsidered develo- through pollutant production processes
pment theories based solely on econo- (negative externalities that impact on
mics and restricted to the GDP concept. soil, air and water), etc. Such task is key
We must rethink our wealth measure- to planning a development that does not
ment by including economic, social and focus only on the economic dimension.
environmental sustainability, and even Therefore, it is a question of trying to
happiness (quality of life / well-being). show the interdependence of economic,
27
1 IISD
Bellagio
sustainable development and clear goals that provide
a practical definition of that vision in terms that are
meaningful for the decision-making unit in question.
Principles Principles 2 through 5 include the content of any asses-
sment, Principles 6 through 8 deal with key issues of the
process of assessment, while Principles 9 and 10 deal
International Institute with the necessity for establishing a continuing capacity
for assessment.
for Sustainable The principles that guide the stages of the sustainable
Development – IISD development measurement process and their content
are as follows:
Principles to measure and assess progress toward sustai- • consider the well-being of social, ecological, and
economic sub-systems, their state as well as the direction
nable development. These principles serve as guidelines and rate of change of that state, of their component parts,
for the whole of the assessment process including the and the interaction between parts;
choice and design of indicators, their interpretation and • consider both positive and negative consequences of
communication of the result. They are interrelated and human activity, in a way that reflects the costs and benefits
should be applied as a complete set. for human and ecological systems, in monetary and non-
monetary terms.
ORIGIN
3. ESSENTIAL ELEMENTS
These principles are the result of the work of an inter-
national group of measurement practitioners and rese- Assessment of progress toward sustainable develop-
archers from five continents gathered by the Interna- ment should:
tional Institute for Sustai¬nable Development – IISD • consider equity and disparity within the current population
and between present and future generations, dealing
in 1996 at the Rockefeller Foundation’s Study and Con-
with such concerns as resource use, over-consumption
ference Center in Bellagio, Italy, aiming to synthesize and poverty, human rights, and access to services, as
insights on the main aspects related to sustainability appropriate;
assessment. • consider the ecological conditions on which life depends;
• consider economic development and other, non-market
OBJECTIVE activities that contribute to human/social well-being..
28
IISD 1
• make the methods and data that are used accessible to all; Even though everyone acknowledges the key role
played by indicators in measuring sustainable deve-
• make explicit all judgments, assumptions, and
lopment, it is difficult to foresee any way to measure
uncertainties in data and interpretations.
sustainable development that is widely accepted and
7. Effective Communication complies with the ten Bellagio principles. In the words
Assessment of progress toward sustainable develop- of Universidade de São Paulo professor José Eli Veiga:
ment should: “Establishing these ten principles may have been too
high an aspiration. However, even if only the fifth cri-
• be designed to address the needs of the audience and set terion is used as a reference point – Practical focus:
of users; Assessments should be based on an explicit set of ca-
• draw from indicators and other tools that are stimulating tegories that links vision and goals to indicators – one
and serve to engage decision-makers; must admit that there are still conceptual and opera-
• aim, from the outset, for simplicity in structure and use of tional differences and constraints preventing it from
clear and plain language. being accomplished”.
José Eli Veiga USP.BR
8. Broad Participation
9. Ongoing Assessment
29
2 HDI + HPI + GDI + GEM
HDI
people’s “happiness” nor shows the “best place in the
world to live in”. It is an important tool to compare life
conditions among countries. It is also used to develop
and guide social policy and programs.
UNDP
CONTENT
The HDI is an index based on capabilities: everyone
should be able to enjoy a long and healthy life, acquire
knowledge and have access to resources necessary to
a decent standard of living.
Since long and healthy life, access to knowledge and
decent standard of living are not palpable things simi-
larly conceived everywhere, it is necessary to use indi-
cators that allow the expression of these life conditions.
• Life expectancy at birth - Life expectancy at birth –
WHAT IT IS number of years newborn babies can be expected to live
if prevailing patterns of mortality at the time of birth
The Human Development Index (HDI), introduced were to stay the same throughout the child’s life.
by the United Nations Development Programme
Minimum value: 25 years
(UNDP), is important because it combines three basic
indicators: life expectancy at birth, income and edu- Maximum value: 85 years
cation attainment. Despite being published for the
• Adult literacy rate - is the percentage of people aged 15
first time in 1990, the index was recalculated for the
previous years, as of 1975. The HDI has gradually be- and above who can, with understanding, both read and
come a world reference. write a short, simple statement on their everyday life.
Minimum value: 0%
ORIGIN Maximum value: 100%
Since the 1990s, the UNDP has developed and disclo- • Combined gross enrolment ratio for primary, secondary
sed the HDI for 175 countries, aiming to express in and tertiary education - measures the percentage of stu-
figures and solidify the idea of Human Development, dents enrolled in the three education levels, regardless
which is based on the premise that, besides the eco- of age, in relation to the total number of people in the
nomic dimension, other social, cultural and political age group that officially corresponds to each one of the-
characteristics that influence the quality of human life se education levels.
should be taken into account in order to measure the
progress of a population. Working for the UNDP, the Minimum value: 0%
Pakistani economist Mahbub ul Haq (1934-1998) con- Maximum value: 100%
ceived the report. It is currently published in dozens of
languages and in over 100 countries. STEP BY STEP
30
IDH + IPH + IDG + MPG 2
For each indicator the following index is calculated: HPI-1 – Human Poverty Index for developing countries
HPI-2 – Human Poverty Index for a group of select high-
(actual value – minimum) income OECD countries
Index = ----------------------------------------------------- GDI – Gender-related Development Index
(maximum – minimum)
GEM – Gender Empowerment Measure
Determining the HDI is straightforward. It is a simple ave-
rage of the three dimensional indices that shows the path Note
followed by the society as compared to the path yet to be
The HPI-1 and the HPI-2 consider the same dimen-
followed for a certain indicator.
sions of the HDI in their calculations – a long and
healthy life, access to knowledge, and a decent stan-
WEIGHTED AVERAGE dard of living –, with the addition of another dimen-
Three indices are, then, composed and all of them will sion: social exclusion.
have the same weight (1/3) in HDI composition:
RESULTS
• Life Expectancy Index - exclusively composed by the
Life Expectancy at Birth indicator; It is a key index of the UN Millennium Development
• Education Index - composed by the indicators “Adult
Goals (http://www.pnud.org.br/odm/) and, in Brazil, it
Literacy Rate”, with two-thirds weight, and Combined has been used by the federal government and by the local
Gross Enrollment Ratio for Primary, Secondary and Ter- administrations: the Municipal Human Development
tiary Schools, with one-third weight; Index (IDH-M), which can be accessed at the Atlas do
Desenvolvimento Humano no Brasil (http://www.
• GDP Index - exclusively composed by the GDP per pnud.org.br/atlas/), is an online database with social and
capita* indicator. economic information on the 5,507 municipalities in the
country, the 26 states and the Federal District.
Minimum value: 100 PPP US dollars.
Maximum value: 40 thousand PPP US dollars. The IDH-M is developed in the same way as the HDI,
from the same dimensions: a long and healthy life, ac-
CALCULATION cess to knowledge, and a decent standard of living.
All three dimensions/aspects of the HDI are equally The indicators used in the IDH-M are not the same as
valuable and desirable. For this reason, all indices re- in the HDI:
presenting them have the same weight (1/3) in the HDI • Longevity Index - Life expectancy at birth in the muni-
composition. cipality indicator.
Aggregation Method: The three indices are added, with • Education Index - Adult literacy rate indicator, with two-
equal weight, and divided by 3. thirds weight, and Gross school attendance rate by muni-
The value of the indices ranges from 0 to 1. Therefore, cipality inhabitants indicator, with one-third weight.
the HDI value also ranges from 0 to 1. The closer to 1 • Income Index - Average family per capita income in the
the HDI value is, the higher the human development municipality indicator.
level of a city, region or country.
Low human development: HDI lower than 0.5. Since 1990 – has risen 14 places among the 177 coun-
Medium human development: HDI between 0.5 and 0.8. tries assessed;
High human development: HDI higher than 0.8. 2005 – ranked 65th (index = 0.792 or medium human
development);
In order to complement the information on human de-
2006 (November) – ranked 69th (index = 0.792; pre-
velopment in the world, the UNDP has developed other
vious index = 0.788 ranking 68th);
indices besides the HDI:
(*) GDP per capita - total value of all final goods and services produced within a certain region or part of society (i.e. countries, states, cities)
divided by its total population.
31
2 HDI + HPI + GDI + GEM
CRITICISM
Year HDI
HDI is still limited, for it does not take into account the
1975 0,643 so-called side effects of progress, such as unemploy-
1980 0,678 ment, crime, new illnesses, environmental pollution,
family breakdown, among others.
1985 0,691
1995 0,738 I must admit I did not initially see much merit in the
HDI itself, which, as it happens, I was privileged to
2000 0,747
help devise. At first I had expressed to Mahbud ul Haq,
2001 0,75 the originator of the Human Development Report,
considerable skepticism about trying to focus on a cru-
2002 0,757
de index of this kind, attempting to catch in one simple
2003 0,778 number a complex reality about human development
and deprivation. (…) But after some initial hesitation,
2004 0,792
Mahbub persuaded himself that the dominance of
2005 0,802 GNP (an overused and oversold index that he wanted
to supplant) would not be broken by any set of tables.
Brazil’s HDI improved between 2003 and 2004, but the country’s position in the world ranking decreased from 68
to 69, coming after Belarus (former Byelorussia) in a list of 177 countries and territories, shows the 2006 Human
Development Report (HDR) published by the United Nations Development Programme (UNDP).
Brazil’s HDI rose from 0.788 in 2003 to 0.792 in 2004, a result that keeps the country among the 83 nations with
medium human development (HDI between 0.500 and 0.799), outside, therefore, the group of 63 nations with high
human development, which has Norway on the top for the sixth year in a row (HDI of 0.965). The data obtained
from the improved methodology indicate that, between 2003 and 2004, Brazil advanced in two of the three dimen-
sions of the Human Development Index (longevity and income) and remained the same in one (education).
In the ranking, Brazil comes right below the Caribbean island Dominica (0.793) and right above Colombia (0.790);
13 countries in Latin America and the Caribbean have a better performance than Brazil, among which Mexico
(ranked 53, with an HDI of 0.821), Cuba (ranked 50, with an HDI of 0.826), Uruguay (ranked 43, with an HDI of
0.851), Chile (ranked 38, with an HDI of 0.859) and Argentina (ranked 36, with an HDI of 0.863). Other 17 nations
of the region rank below Brazil, such as Venezuela (ranked 72, with an HDI of 0.784), Peru (ranked 82, with an HDI
of 0.767), Paraguay (ranked 91, with an HDI of 0.757), Jamaica (ranked 104, with an HDI of 0.724), and Haiti, the
worst in Latin America and the Caribbean (ranked 154, with an HDI of 0.482). The lowest index in the world is
Niger’s (ranked 177, with an HDI of 0.311), in Africa.
Another indicator derived from the HDI is the Gender-related Development Index (GDI), which measures achie-
vement in the same basic capabilities as the HDI does, but takes note of inequality in achievement between women
and men. In the ranking with 136 countries, Brazil comes in 55, just before Colombia (56) and Oman (57), and right
after Macedonia (54) and Mauritius (53). Like in the HDI list, Norway is the leader and Niger the last country in
the GDI.
http://www.pnud.org.br/pobreza_desigualdade/reportagens/index.php?id01=2388&lay=pde
32
IDH + IPH + IDG + MPG 1.3
2
People would look at them respectfully, he argued, but THE ENVIRONMENTAL HDI
when it came to using a summary measure of develop-
If the UN started to build the environmental variable into
ment, they would still go back to the unadorned GNP,
the annual assessment made by the UNDP, a sort of ro-
because it was crude but convenient. (…) Mahbub got
tation of nations would occur. The United States would
this exactly right, I have to admit, and I am very glad
plummet in the ranking, whereas Brazil would climb some
that we did not manage to deflect him from seeking a steps. The Environmental HDI, a hybrid index calculated
crude measure. By skilful use of the attracting power of by the BNDES technicians, is a combination of the indica-
the HDI, Mahbub got readers to take an involved inte- tors that comprise the HDI and the variables of the Envi-
rest in the large class of systematic tables and detailed ronmental Sustainability Index (ESI). In the Environmen-
critical analyses presented in the Human Development tal HDI ranking, Brazil goes up from the 54th to the 39th
Report. place. Biggest world polluters, the United States, in turn,
Amartya Sen, 1998 Nobel Laureate in Economics, in plummet from the eighth place in the traditional HDI to
the foreword to the 1999 HDR. the 15th position in the Environmental HDI. Emerging
power China ranks 129th in the environmental indicator.
Source:
REFERENCE O Globo, Mar 25, 2007, Financial news, pages 33 and 34.
Ranking de municípios no Brasil
www.pnud.org.br
www.pnud.org.br/idh/ In order to complement the information on hu-
www.pnud.org.br/atlas/ranking/IDH-M%2091%2000%20R man development in the world, the UNDP has
anking%20decrescente%20(pelos%20dados%20de%202 developed other indices besides the HDI:
000).htm
• HPI-1 – Human Poverty Index for developing
Human development report 2005 countries
hdr.undp.org/reports/global/2005/pdf/presskit/HDR05_PKE_
HDI.pdf • HPI-2 – Human Poverty Index for a group of select
high-income OECD countries
• GDI – Gender-related Development Index
• GEM – Gender Empowerment Measure
HDI around the world: dark green shows the highest indices (>0.9); brown, the lowest (<0.3).
33
2 HDI + HPI + GDI + GEM
Human CONTENT
The HPI-1 and the HPI-2 make use of the same di-
Indicator derived from the HDI and published since In the Human Poverty Index (HPI), calculated only for
1997 by the UNDP. developing countries, Brazil ranked 20th out of 103
countries and territories.
OBJECTIVE Uruguay is the highest scoring country, and Niger is the
The HPI measures deprivation in human development. lowest.
Therefore, while the HDI measures overall progress in a This indicator measures deprivation in three aspects:
country in achieving human development, the human
• Short life (represented by the probability of not surviving
poverty index (HPI) reflects the distribution of progress
to age 40);
and measures the backlog of deprivations that still exists.
The HPI is conceived for developing countries (HPI-1) • Lack of basic education (measured by the percentage of
adults who are illiterate);
and for developed countries (HPI-2). A separate index
was developed for industrialized countries because hu- • Lack of access to public and private resources (measured
man deprivation varies with the social and economic by the unweighted average of the percentage of the
conditions of the community, and in order to take ad- population without access to safe water and the percentage
vantage of high data availability in these countries. of underweight children for their age).
34
HDI + HPI + GDI + GEM 2
The better the position in this ranking, the lower the hu- The Gender-related Development Index (GDI)
man poverty presented by the country or territory. measures achievement in the same basic capabilities
NOTE: Due to the lack of data from developing coun- as the HDI does, but takes note of inequality in
tries, the HPI measures only 78 countries. achievement between women and men. The greater
the gender disparity in basic capabilities, the lower
Developed countries: a country’s GDI compared with its HDI. The GDI is
Despite having one of the highest per capita incomes simply the HDI discounted, or adjusted downwards,
in the world, the United States has the worst human for gender inequality.
poverty index among the rich countries. The result
of the study shows that Sweden is the country that In a ranking with 140 countries, Brazil ranks 52nd,
has evolved the most in this aspect, coming before just before Belarus (53) and Mauritius (54), and right
Norway, Finland, the Netherlands, Denmark, Ger- after Romania (51) and Malaysia (50). However, as the
many, Luxembourg, France, Spain and Japan. Italy HDI ranking has 177 countries, if we add the coun-
ranks 11th, followed by Canada, Belgium, Australia, tries that would come before Brazil in the HDI list to
United Kingdom, Ireland, and the United States, whi- the GDI list, the country ranks 64, that is, only one
ch ranked 17th.
position below its position in the HDI ranking. That
The UNDP notes that Sweden, despite a lower per capi- shows a virtual gender equality in the country (wo-
ta income than the United States, has, on average, more men live longer and have more education, but lower
adults who are functionally literate and fewer living in income reduces living conditions for them). As well as
poverty. According to the statistics, 7.5% of the Swedish in the HDI list, Norway tops the GDI list and Niger is
population between 16 and 65 is functionally illiterate, at the bottom.
whereas in the United States this figure is over 20%. In
Sweden, 6.3% of the population lives below the poverty The Gender Empowerment Measure (GEM) evalu-
line (with US$ 11 per day, which is the reference point ates progress in advancing women’s standing in poli-
for this group of countries), whereas in the United Sta- tical and economic forums. It examines the extent to
tes this figure reaches 13.6%. which women and men are able to actively participate
in economic and political life and take part in decision-
REFERENCE making. It verifies the number of seats in parliament
www.pnud.org.br held by women, number of female legislators, senior
http://www.dhnet.org.br officials and managers, and female professionals and
technical workers. It also includes the gender disparity
in earned income, reflecting economic independence.
35
2 HDI + HPI + GDI + GEM
TECHNICAL NOTE 1
CALCULATING THE HUMAN DEVELOPMENT INDICES
The diagrams here summarize how the five human development indices used in the Human Development
Report are constructed, highlighting both their similarities and their differences. The text on the following
pages provides a detailed explanation.
Deprivation in a decent
standard of living
36
GNH 3
GNH – Gross
Majesty King Khesar underlined that the ultimate goal
for social, economic, political changes in Bhutan is the
fulfillment of GNH.
National Happiness The constitution of Bhutan describes the state and the
government as having responsibilities to pursue GNH.
The Centre for GNH should become a serious arbitrator of public po-
licies and plans.
Bhutan studies Finally, the GNH index was developed by the Centre for
Bhutan Studies, a non-aligned and non-profit research
institution based in Thimphu, Bhutan
OBJECTIVE
GIH aims to connect the international efforts which are
COUNTRY
taking place in the field of developing alternative deve-
Bhutan lopment indicators, human economics and happiness
psychology, so that individual efforts can benefit from
WHAT IT IS each other and that collectively these efforts can more
strongly impact on the international development agenda.
GNH indicators serve as evaluative tools to track de-
velopmental progress over time. GNH indicators as CONTENT
targets display a common sense of purpose, offering us
The GNH comprises 72 indicators that cover nine di-
direction to the programs and policies which are cohe- mensions considered as the main components of happi-
rent with the values of GNH. ness and wellbeing in Bhutan. The nine dimensions are
The Gross National Happiness index is generated to re- equally weighted. Within each dimension, the indica-
flect the happiness and general well-being of the Bhuta- tors are equally weighted, but since each dimension has
nese population more accurately and profoundly than a different number of indicators, they can take different
a monetary measure. The measure will inform both weights when calculating the overall measurement.
the Bhutanese people and the wider world about the The nine dimensions are:
current levels of human fulfillment in Bhutan and how 1. Psychological wellbeing
these vary across districts and across time, and will also 2. Time use
inform government policy. 3. Community vitality
How do we identify who is happy? 4. Culture
5. Health
The Bhutanese understandings of happiness are much
broader than those that are referred to as “happiness” in 6. Education
the Western literature. The GNH takes what is known as 7. Ecology
the ‘union’ approach to identification in the literature on 8. Living standards
multidimensional measurement. A person who has achie- 9. Good governance
ved sufficiency in all 9 dimensions is considered happy.
In this perspective ‘happiness’ comprises having suffi-
ORIGIN cient achievements in each of the nine dimensions.
“Gross National Happiness is more important than 1. Psychological Wellbeing Indicators
Gross Domestic Product” was coined by His Majesty 1 General health questionnaire
the 4th King of Bhutan – Jigme Singye Wangchuck HM 2 Frequency of prayer recitation
– (in the 1970s), who is the author of GNH.
3 Frequency of meditation
Coinciding with the coronation of the 5th King of Bhu- 4 Taking account of karma in daily life
tan, His Majesty Jigme Khesar Namgyel Wangchuck, 5 Frequency of feeling of selfishness
in November 2008, the Royal Government of Bhutan
6 Frequency of feeling of jealousy
has adopted the GNH index. In December 2006 he
proclaimed that fulfilling the vision of GNH would be 7 Frequency of feeling of calmness
one of the four main responsibilities of his reign. His 8 Frequency of feeling of compassion
37
3 GNH
38
GNH 3
not reached cutoff in each indicator, divided by the the sufficiency cutoff is deepening or narrowing across time.
number of deprivations pointed out by the popula-
tion. This number shows the percentage contribution Methodology > http://grossnationalhappiness.com/
to the lack of happiness. screeningTools/screeningTools.aspx
WHAT IT IS countries and companies that have started to implement sustainability and
The Gross International Happiness Project (‘GIH’) is based on the insight that corporate social responsibility, while collecting international research and
conventional development concepts such as GNP and Per Capita Income do practices around sustainable development indicators, which account for en-
not properly reflect the general well-being of the inhabitants of a nation. In vironmental and social values. The concept of GNH is meant to incorporate
these values, yet it also transcends them by including values reflecting gene-
order to develop real progress and sustainability and to effectively combat tren-
ral well-being over a longer time horizon. A possible GNH Index could beco-
ds which compromise the planet’s natural and human ecosystems, GIH aims
me the next level of innovation of indices, improving upon those measuring
to develop more appropriate and inclusive indicators which truly measure the
environmental and social values.
quality of life within nations and organizations.
The GIH Project is a collaboration by the following institutions:
ORIGIN
• Bhutan Sustainable Development Secretariat (SDS) and Center of
GIH is inspired by the concept of Gross National Happiness (GNH) propo- Bhutan Studies, Bhutan
sed by the King of Bhutan, which puts the well-being of individuals on top • Spirit in Business, USA and the Netherlands
of the national development agenda. Rooted in Buddhist philosophy and • Social Venture Network Asia, Thailand
values, GIH presents a radically different development paradigm, but one • ICONS, Redefining Progress & Implementing New Indicators on
that holds a promise for achieving real sustainability. Sustainable Development, Brazil
• Inner Asia Center for Sustainable Development, the Netherlands
OBJECTIVE • The Government of Mongolia
GIH aims to connect the international efforts which are taking place in the • The Values Center, USA
field of developing alternative development indicators, human economics • Society for Ecology and Culture, UK and Ladakh, India
and happiness psychology, so that individual efforts can benefit from each • Genuine Progress Indicators, GPI Atlantic, Canada
other and that collectively these efforts can more strongly impact on the • New Economics Foundation, UK
international development agenda.
Referência
CONTENT www.grossinternationalhappiness.org
The GIH Project consists of a series of conferences, seminars, researches Book: First GNH Conference in Bhutan
and publications around the world. The first meeting will be held in Bhutan This seminar is the first national initiative on exchanging ideas
deriving from various areas and sectors.
(February 2004), followed by conferences in Mongolia (July 2004) and the
Netherlands (2005). www.grossinternationalhappiness.org/downloads/Book-GNH-I-1.pdf
Report on the GNH Conference, held February 18-20, 2004 in Bhutan.
An international project on research and dialogue aimed at developing
STEP BY STEP policy and indicators focused on true values, sustainable development
The GIH Project is guided by a select group of experts, forming a Task For- and well-being for nations and organizations.
ce. The GIH Project draws on the best practices of the growing number of www.grossinternationalhappiness.org/downloads/GIH_report_18-2-04.doc
39
4 BIP 40
Bip 40 – Inequity
4. Education (5 indicators)
5. Housing (5 indicators)
EMPLOYMENT INDEX
• working conditions index;
Network of Warning about • unemployment index;
INCOME INDEX
• wages index;
• consumption index;
• income and tax inequalities index; and
• poverty index.
HEALTH INDEX
• life expectancy at birth;
• life expectancy gap between executives and workers;
• rate of health expenditure in the GDP;
COUNTRY • rate of health expenditure borne by families; and
• disparity of regional medical expenses.
France.
EDUCATION INDEX
WHAT IT IS
• access to course completion;
Combined indicator of inequalities and poverty. • dropout;
• inequalities in the French language level;
ORIGIN • inequalities in the Mathematics level; and
Disclosed in 2002 by the Network of Warning about • proportion of children of executives to children of
Inequality and Poverty. workers in college entrance exams.
CONTENT
JUSTICE INDEX
There are six dimensions (58 indicators):
• rate of imprisonment,
1. Employment and work (24 indicators broken into • rate of pre-trial detention,
four categories)
• percentage of prisoners convicted to over 5 year of
2. Income (15 indicators broken into four categories) imprisonment, and
3. Health (5 indicators) • rate of grant of refugee status
40
BIP 40 4 1.6
BIP 40
Evolution of the Inequity and Poverty Barometer as of 1983
6,00
5,50
5,00
4,50
4,00
3,50
3,00
1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003
41
5 BCN
Balance Sheet
liabilities correspond to environmental preservation
ones, and the equity means the residual part designed
to reestablish the natural reservations for the current
of Nations and future generations.
Assets are monetarily assessed (US$), adopting as op-
portunity cost the gross domestic product - purchasing
power parity (GDP-ppp), adjusted by the average ener-
gy consumption in tons of oil equivalent (TOE). Equity
is measured by the residual balance of carbon (CO2)
emissions minus sequestration for each country or re-
gion, calculated based on the expected cost of carbon
sequestration and on the scenarios forecast in IPCC’s
Special Report on Emission Scenarios (SRES). Liabili-
ties are determined by equivalence. The rationale for
the criteria adopted is the following:
GDP-ppp: Represents the monetary value of all final
goods and services produced within a nation, and,
WHAT IT IS therefore was defined as assets assessment parameter.
The purchasing power parity (ppp) method is adopted
The Balance Sheet of Nations is a methodology for fi- by the UN and the World Bank and allows for a better
nancial reporting of countries or regions through the comparability between countries. Due to the limita-
inquired balance sheet method and the basic accoun- tions of this economic growth measurement, its adjust-
ting equation: ment by energy consumption was suggested.
assets minus liabilities equals equity, consisting of phy- Average energy consumption (in TOE): It is directly
sical (forest resources) and financial data. related to GHG emissions, especially CO2 ones, and
the level of economic and social development of the
ORIGIN countries. It is unevenly distributed, as follows: the
world average (1.69 TOE), USA (8.45), Germany (4.2),
The model was created by a group formed by resear- Japan (4.05), Russia (3.5), Brazil (1.09), China (0.66),
chers of the Department of Accounting and Actuaries India (0.32), Bangladesh (0.15). It means that, to ge-
of the University of São Paulo School of Economics, nerate the same amount of $ in a given country, CO2
Business Administration and Accountancy, the Yoko emissions and environmental degradation are uneven.
Civilization Research Institute (YCRI), the USP En- In countries where this consumption is lower than
vironmental Science Graduate Program (PROCAM/ one TOE, illiteracy, infant mortality, and fertility ra-
USP), and the USP Energy and Nuclear Research Insti- tes are high, whereas life expectancy and the human
tute (IPEN/USP). development index (HDI) are low. Therefore, despite
the urgent need for reducing energy consumption, it
OBJECTIVE is critical that poor countries surpass the 1 TOE level
(GOLDEMBERG, 2007).
The Balance Sheet of Nations aims to unveil the burden
that each citizen will have to bear as a result of the glo- CO2 residual balance: Forest carbon stocks contained
bal climate change and global warming due to increased in the soil biomass and organic compounds represent
greenhouse gas (GHG) concentration. It shows supera- deposits of carbon avoided in the atmosphere and have
vit or deficit scenarios and allows for individual and col- been converted into Million Tons of Carbon (MtC),
lective reflections on global, regional and local actions according to the areas of biomes of each country and
related to environmental preservation mechanisms. respective stock levels suggested by IPCC (2000). The
residual balance is determined by subtracting the
CONTENT amount of accumulated carbon emissions, according
to the various combinations of IPCC SRES’s A1B1 and
The Environmental Balance Sheet of each country A2B2 scenarios for 2050, covering deforestation, use of
has its assets represented by its forest resources. The technologies, and compliance with the Kyoto Protocol.
42
BCN 5
STEP BY STEP
The basic procedures to determine the Balance Sheet of
Nations of a given country or region are the following:
1. Collecting data: gross domestic product (GDP ppp),
average annual energy consumption (TOE), number of
inhabitants, forest area of biomass and organic compounds,
carbon stock levels, and cost suggested by the UN of the
avoided carbon.
2. Measuring the Environmental Assets: determining the per
capita GDP-ppp by the number of inhabitants and dividing it
by the average energy consumption (in TOE).
3. Measuring the Environmental Equity: determining
the residual carbon balance obtained by subtracting the
estimated carbon emissions in the scenarios created by
IPCC from the balance in stock (forest area times the carbon
sequestration rate). Finally, the balance in MtC is converted
into $ using the cost suggested in the UN reports.
4. Measuring the Environmental Liabilities: obtained by
equivalence.
RESULTS
The results of this model show the per capita environ-
mental situation for each country or region studied in
the form of an ‘Environmental Balance Sheet’.
This pioneering study of USP was presented during the
award ceremony of the 2008 ECO Award, promoted by
the American Chamber of Commerce for Brazil, as part
of the lecture given by Minister Roberto Mangabeira Un-
ger on ‘Myths and realities of the Amazon’. It covered a
sample of seven countries of BRIC (Brazil, Russia, India
and China) and developed countries of America, Europe
and Asia (USA, Germany and Japan), which account for
68% of the GDP, 50% of the population and 48% of the
energy consumption, and the main economic blocs.
The consolidated balance sheet for the planet, deriving
from this study, was in deficit, with a negative net equi-
ty, that is, an unsecured environmental liability equiva-
lent to $ 2.3 thousand per year for each of the 6.6 billion
inhabitants. In this insolvent scenario, Brazil and Russia
will play a key role since they should present ‘environ-
mental superavit’, an advantage primarily conditioned
to urgent actions against the current deforestation.
43
6 BS
Barometer
level, from local to global.
CONTENT
of Sustainability It is the only performance scale designed to measure
human and ecosystem well-being together without
submerging one in the other. Its two axes – one for
The World Conservation human well-being, the other for ecosystem well-being
– enable socioeconomic and environmental indicators
Union (IUCN) e to be combined independently, keeping them separate
The International to allow analysis of people-ecosystem interactions.
The tool combines a series of environmental and so-
Development Research cial indicators (selected by the community), such as,
Centre (IDRC) for instance: water quality, employment, economy,
education, crime, violence, etc., using performance
scales. Good or fair are defined as one end of the scale
and bad or poor as the other end, as well as the po-
sition of indicators can be outlined within this scale.
The result is a set of performance measures, all using
the same general scale, thus enabling the combination
and joint use of indicators.
COUNTRY The definition of indicators is based on some key prin-
Canada. ciples such as the consideration that people are part of
the ecosystem and, therefore, people and ecosystems
must be treated jointly and equally; and that raising
WHAT IT IS
relevant issues within a context is critical and must
A methodology for assessing and communicating pro- be done by a group of people linked with this context
gress toward sustainable societies, which consistently (community engagement) and that are willing to col-
combines various social and environmental indicators, lectively ask and learn, since the lack of knowledge of
disclosing an assessment of the state of people and the people-ecosystems relations is a well-known fact.
environment through a scale of indices.
Prescott-Allen believes it is a logical way to turn ove-
rall concepts of sustainable development, well-being
ORIGIN and progress into a set of real human and ecological
Developed by several specialists, mainly those linked conditions.
with The World Conservation Union (IUCN) and The
International Development Research Centre (IDRC). STEP BY STEP
Prescott-Allen is one of the main researchers involved in
In order to calculate or measure progress towards
the development of this tool.
sustainability, values are calculated for the social well-
being and ecosphere well-being, as well as the sub-in-
OBJECTIVE dices, if any. The ecosystem wellbeing index identifies
It is a systems sustainability measurement model. It pro- trends of the ecological function along time. It is a
vides clear, rapidly communicated pictures of the con- function of water, land, air, biodiversity and resource
dition of the environment, the condition of the people use. The human wellbeing index represents the ove-
and, when analyzed in combination, the overall progress rall level of well-being of society and is a function of
towards sustainability. It also compares human and well-being concerning the individual, health, educa-
ecosystem well-being within societies, the rate and di- tion, unemployment, poverty, income, crime, as well
rection of change, and major strengths and weaknesses. as human business and activities. It is a two-dimensio-
nal graph where human and ecosystem well-being sta-
The Barometer of Sustainability is designed, according tes are placed in relative scales ranging from 0 to 100,
to its authors, to governmental and non-governmen- indicating a situation that varies from bad to good in
tal agencies, decision-makers and people involved with relation to sustainability. A point defined by these two
sustainable development-related issues at any system’s axes within the two-dimensional graph shows a mea-
44
BS 6
Category
Biodiversity Land Water Air Resouce Needs Social Equity
use
Supply Quality Quantity Criterion
Indicator
Coliform bacteria
45
6 BS
Indicate whether the system or technology has a negative (-), positive (+), or
neutral (n) impact on the listed criteria.
ECOSYSTEM
Biodiversity Water
• Wildlife diversity • Water access
• Rare or endangered species • Water supply
• Species abundance • Water quantity
• Wild plant diversity • Water quality
• Crop diversity • Drainage pattern
• Introduces exotic species? If yes,
this could be a negative (-) impact.
Air
Land • Air quality
• Wildlife habitat
• Vegetation cover
• Soil texture
• Nutrient recycling Resouce use
• Soil fertility • Land use
• Soil structure • Conservation of natural resouce
• Soil or slope stability (e.g., erosion) • Resouce use
People
Human needs Social self-determination
• Diverse outputs (productivity) • Family structure
• Food security • Gender roles
• Yeld (efficiency) • Popular growth
• Risk • Education
• Income or income distribution • Local culture
• Capital requirements • The rights of local communities
• Economic return, profit margin • Community health
• Labour requirements • Local economy / capital flow
• Maintenance / learning requirements • Local (re)investment
• Self-reliance (uses local materials?) • Community infrastructure (e.g., roads)
• Control over output and process • Community harvesting
• Living conditions (e.g., shelter) • Access to community resources (e.g. water, grazing lands)
• Human healt (e.g., sanitation, toxicity) • Community cultural landmarks
• energy supply (e.g., wood, fuel) • Community recreational activities
• Land tenure
46
CALVERT 7
Calvert-Henderson CONTENT
A systems approach is used to illustrate the dynamic
47
8 DNA
STEP BY STEP
A geometric shape was defined to sum up the compa-
rison of dimensions included in the study, based on fo-
WHAT IT IS recasts made by participants of the meeting organized
This index aims to measure the real progress and quali- by the Brazil DNA Institute in October 2004, to which
ty of life in the country as compared to an ideal scenario was given value 1.
forecast for 2029.
Worse scenarios for the same Brazilian indicator are
given a value below 1. Better scenarios, if any, are gi-
ORIGIN
ven a value above 1. The set of points defined by the
Brazil DNA Index is the result of a joint reflection on Brazilian indicators presented in 2004 and referring to
the Brazilian development carried out by the Brazil DNA the year 2002 had the shape of a polygon that can be
Institute and the NEPP (University of Campinas Center compared to the forecasts made by the participants in
for Public Policy Studies). NEPP is supported by resear- the referred meeting.
chers of the Economics Institute (IE) and the Center of
Studies on Population (NEPO), of the same university. It Due to the amount of indicators, the (external) area of
was established with the help of participants in the Brazil the forecast polygon resembles the shape of a circle,
DNA Institute of the first annual meeting, held in 2004. which was adopted to facilitate its graphic visualiza-
tion. In 2005, the information was updated and most of
OBJECTIVE it refers to 2003 data. The comparison with forecasts to
2029 was made, thus enabling the new relative scena-
It aims to: rio of Brazil to be visualized against the forecasts.
• Visualize reality through indicators integrating various
The participants of that first meeting were asked to fo-
dimensions;
recast, for each indicator, one desirable and realistic
• Compare the Brazilian reality with future expectations and scenario to be achieved in 2029 from the actual Brazi-
the situation of other countries; lian situation portrayed by the 2002 information.
• Measure the mobilization of public/private actors involved in
development projects. RESULTS
The ultimate objective of the Brazil DNA Index is to In its first measurement, the index showed that Brazil
create a national mobilization around a project for so- was rating 46.8% out of the forecast 100%. Due to cor-
cial and economic development of the country, highli- rections in the indicators, this index was later changed
ghting the problematic issues and setting parameters to 47.6%. In other words, 52.4 percentage points sepa-
with the maximum seriousness and scientific orienta- rated the Brazil of 2004 from the Brazil the Institute’s
tion to guide the development of policies and the action board members forecast as plausible and rationally
of individual and institutional players. desirable.
In 2005, the index improved a little, up to 49.3%. In
CONTENT its third update, in 2006, it kept this trend, and had a
The Brazil DNA Index goes beyond the dimensions small increase to 51.4%.
used by the HDI – Human Development Index (inco-
me, longevity and education), and measures its result REFERENCE
based on seven social and economic dimensions (wi- www.dnabrasil.org.br
thout disregarding the demographic dimensions of the
2004 Summary index = 46.8% (PDF file)
Brazilian reality):
www.nepp.unicamp.br/dnabrasil/sintese.pdf
1. Economic well-being
2004 Full index (PDF file)
2. Economic competition www.nepp.unicamp.br/dnabrasil/referencia.pdf
3. Social and environmental conditions
48
DNA 8
EDUCATION
High School Net Schooling Rate
High School Graduates at Expected Age
Student’s Performance at PISA – Programme for
International Student Assessment
49
8 DNA
Comparison between the 2004 Index (gray) and the 2005 Index (black)
50
DS 9
Dashboard
mental, social and economic data. The latest addition to
the collection of Dashboard presentations is the Millen-
nium Development Goals Dashboard (MDGs).
of Sustainability
OBJECTIVE
51
9 DS
A recent graphic representation of the Dashboard of cal stocks. In this sense, the indicators tend to faci-
Sustainability system is built through a visual dash- litate the process of communication of sustainable
board with three displays corresponding to three development, turning this concept into numerical
clusters of indicators that measure the status of the data, descriptive measures and guiding signs.
environment, the economy, and the social well-being
Currently, according to the authors, all indicators
of a nation. The current performance of the system is
within each of the scopes have equal weight.
communicated using a simple color code from deep
green (“very good”) to deep yellow (“acceptable”) to A typical Dashboard view – a map of Africa, using
red (“very bad, critical”). A graph seeks to reflect the a color code ranging from deep red (“critical situa-
change in that performance over time; and there is a tion”) to deep green (“excellent”).
gauge showing the amount remaining of certain criti-
U S T E N TA B
R ALL S ILI
O VE TY
RES C A P I TA L S
ERVES ASSETS
! ! !
Enviromental Alerts Social Alerts Economic Alerts
Water Poverty Inflation
52
DS 9
Kenia
Latest year
Source
Morocco Tunisia World Bank
Women in Girls to boys
parliament in education
Algeria Libyan Arab
Gender Jamahiriya
equality and Morocco Egypt
78% ages 15 - 24
empowerment 453 points
of women Cape Verde
Mauritania
Senegal Mali
Niger Chad Eritrea
Sudan
Women Female Cape Verde
93% ages 15 - 24 Burkina Faso Djibouti
employment literacy 653 points Guinea Benin
Siera Leone Nigeria
Ghana Central African Republic Ethiopia
Liberia
EPH UPE GEW ChM IMH HMD EES GPD O Togo Cameroon
Ivory Coast Kenia
Rwanda Equatorial Guinea Republic
Congo Rwanda Uganda Somalia
Gabon
Latest year São Tome and Principe
Burundi
% ages 15 - 24 Congo. Dem. Rep.
Tanzania
Women in Girls to boys 119 Comoros
parliament in education 109 .. 104 Angola
Malawi
102 .. 95 Mayotle
Zambia
Gender 94 .. 86
equality and Namibia Zimbabwe
Mozambique
85 .. 78
empowerment Botswana
of women 76 .. 71
67 .. 62
STEP BY STEP countries, but it can also be applied for urban and regio-
nal indices. These indicators comprise the database of the
The Dashboard of Sustainability is a free, non-com- Consultative Group on Sustainable Development Indica-
mercial software package. This tool links a free sof- tors, which covers more than 100 countries.
tware package to a flexible international database,
enabling each individual, association, advocacy group, REFERENCE
etc. to consult numerous data, create panels on me-
www.iisd.org/cgsdi/
asurement, as well as building one or more national
www.iisd.org/cgsdi/dashboard.asp
combined indicators, changing the number and wei-
Download the Dashboard
ghting of variables at its own discretion. esl.jrc.it/envind/dashbrds.htm
RESULTS
The tool is meant to be used for comparison between
53
10 EF
Ecological Footprint
print Standards has started. In this edition the Foot-
print Committees will expand the Standards to more
specifically address organizational Footprints, as well
as the Footprint of Products, Processes and Services.
Mathis Wackernagel e The Committees are in the final stages of drafting the
William Rees da University Certification process for Footprint assessments.
54
EF 10
Annual Report” and “Africa’s Ecological Footprint: Footprint studies to be certified. In other words, all
Human Well-Being and Ecological Capital” (in part- standards (unless they are not applicable) must be met
nership with the Swiss Agency for Development and in order to qualify for certification. Global Footprint
Cooperation). The results of studies in 150 countries Network will establish a certification system based on
have also been published. these standards.
Ecological Footprint Standards 2006 – The publication • Guidelines are recommended practices which are not
of standards used to measure the ecological footprint required for study certification.
aimed at guaranteeing the scientific integrity of the me-
Online information – there are many studies available
thodology and to produce consistent and comparable
at www.footprintnetwork.org, including:
data. This first release of the standards has two parts:
• Humanity’s Footprint 1961-2002 – Ecological Foo-
I. Applications Standards - define requirements for
tprint accounts estimate how many Earths were nee-
calculating Footprint results, to ensure that Footprint
ded to meet the resource requirements of humanity for
calculations are conducted in a consistent manner, so
each year since 1961, when complete UN statistics be-
that results are reproducible and comparable with other
came available.
studies employing common boundary definitions.
1. 1. Consistency with National Footprint Accounts
• National Footprint Accounts currently exist for
over 150 countries in hectares and acres, for each year
2. Definition of Study Boundaries from 1961 to 2002. Totaling the national Footprints of
3. Sub-National Population Calculations each country provides us with the global analysis.
55
10 EF
to bear our lifestyle, that is, the humanity is using 120% Nowadays, the Ecological Footprint exceeds the rege-
of the Earth’s capacity. nerative capacity of the planet by 23%. In other words,
more than one year and three months are necessary
The National Footprint and Biocapacity Accounts
for the Earth to regenerate what is used in a single
provide the basis for all Ecological Footprint analyses.
year. Maintaining or increasing this gap will result in
Information is presented in consistently formatted ba-
the exhaustion of the natural resources of the planet.
lance sheets, which use extensive data sets largely from
This is an underestimated major threat that has not
United Nations agencies. With over 4,000 data points
and 10,000 calculations per country per year, national been properly addressed.
Footprint accounts document the natural resources Source: www.panda.org/livingplanet/lpr00/ecofoot.cfm
(e.g., cropland, pasture, forests and fisheries) available
within the country as well as the country’s demand on REFERENCE
these resources. www.footprintnetwork.org
www.rprogress.org/newprojects/ecolFoot.shtml
TO CALCULATE YOUR ECOLOGICAL FOOTPRINT
www.eea.europa.eu/highlights/Ann1132753060
Individual Footprint – a quiz (Ecological Footprint Quiz)
on habits and attitudes, available at www.myfootprint.org.
RESULTS
Today, most countries, and the world as a whole, are
running ecological deficits. The world’s ecological defi-
cit is equal to its ecological overshoot1.
12 –
10 – North America
Western Europe
Área units per person
4–
Asian/Pacific
Africa
2–
0–
299 384 343 307 484 3.222 710
OECD
Non-OECD
Population (milions)
1
When humanity’s ecological resource demands exceed
what nature can continually supply, we move into what is
termed ecological overshoot.
56
EPI 11
Environmental OBJECTIVE
The EPI provides a powerful tool for improving policy-
Performance making and shifting environmental decision making
onto firmer analytic foundations. It centers on two bro-
57
11 EPI
Child Mortality
Adequate Sanitation
Enviromental Health
Urban Particulates
Energy Efficiency
58
EPI 11
licy categories. New Zealand ranked first, followed, infrastructure (such as drinking water and sanitation
respectively, by Sweden, Finland, Czech Republic, systems) and weak regulatory systems.
and the United Kingdom. The United States ranked
28th, which reflects top-tier performance on envi- REFERENCE
ronmental health issues, but also indicates that the www.yale.edu/epi/
US is under-performing on critical issues such as re- beta.sedac.ciesin.columbia.edu/es/epi
newable energy, greenhouse gas emissions, and water
resources.
Among the middle-rank countries, performance is of-
ten uneven. Brazil, for example, ranked 34th, has very
high water scores but low biodiversity indicators.
The lowest-ranked countries – Ethiopia, Mali, Mau-
ritania, Chad and Niger – are underdeveloped na-
tions with little capacity to invest in environmental
78.8 - 88.1 69.6 - 78.7 60.3 - 69.5 51.7 - 60.2 25.6 - 51.6 no data
59
12 ESI
Environmental OBJECTIVE
The ESI is a cross-country benchmarking tool, inclu-
Index – Esi
quantity, etc.
• Reducing environmental stress: reducing pollution, lower
stress on the ecosystem, etc.
• Reducing human vulnerability: basic sanitation.
YCELP • Social and institutional capacity: corporate governance,
science and technology.
Center for Environmental • Global stewardship: international agreements, cooperation
Law and Policy in environmental agreements, etc.
60
ESI 12
59.7 - 75.1
52.5 - 59.8
46.6 - 52.4
40.5 - 48.2
29.2 - 40.0
61
13 EVI
Environmental
processes that can negatively influence the sustainable
development of countries.
62
EVI 13
63
14 GPI
Genuine Progress
Factors considered by the GPI as opposed to the GDP
calculation:
Indicator – GPI I. Crime and Family Breakdown – Factors that take a lar-
ge economic toll on individuals and society in the form
of fines, medical expenses, lost property, etc. The GDP
addresses such expenses as additions to well-being,
Redefining Progress whereas the GPI deducts them.
II. Household Work and Volunteer Work – Highly rele-
vant contributions to society that go unmeasured in
the GDP, because they are not done for pay. The GPI
corrects such omission and adds, among other things,
the value of household work through an estimate of the
cost of hiring someone to do equivalent work.
III. Income distribution – Increase in income does not
mean improvement for all, because inequality between
the very rich and the least well off may also be rising.
COUNTRY The GPI increases when the poor receive a higher per-
centage of the national income, and decreases with a
USA lower percentage.
WHAT IT IS IV. Depletion of Resources – Once the current eco¬nomic
activity depletes the natural capital necessary for future
Index to measure a nation’s progress considering well- activities, it is not truly contributing to well-being. On
being and environmental parameters, as an alternative in- the contrary, it is shifting a cost to future generations
dicator to the GDP. that should be borne in the present as a resource rent.
In the GDP accounts, such rents are part of the cur-
ORIGIN rent income, whereas the GPI counts the depletion or
The GPI was created in 1995 by Redefining Progress, a degradation of wetlands, forests, farmland and non-re-
non-profit public policy organization founded in 1994, newable minerals (including oil) as a current cost.
which put forward solutions aimed at helping people, pro- V. Pollution - For the GDP, pollution is a double bene-
tecting the environment and developing the economy. fit to the economy since GDP increases with polluting
activities and then again with clean-ups. The GPI, on
ObjeCtiVE its turn deducts air and water pollution, measured ac-
The GPI measures economic growth of a country as- cording to the current harm on human health and the
sociated with increase in the well being of its inhabi- environment.
tants. The index proposes a comparison with the GDP, VI. Long-term Environmental Damage – Climate chan-
seeking to show to what extent traditional economic ge and nuclear waste management are two long-term
growth is compromising the planet’s future life. costs generated from fossil fuel and nuclear energy use.
These costs are not accounted for in traditional econo-
CONTENT mic calculations. The same occurs with ozone deple-
The indicator uses the same calculation methodology tion, caused by substances such as the chlorofluoro-
as the GDP, but unlike the GDP, it makes deductions carbons (CFCs). For this reason, the GPI addresses the
to account for costs derived from factors such as cri- consumption of certain sources of energy and ozone-
me, pollution, environmental de¬gradation, depletion depleting substances as costs.
of non-renewable resources and other forms of natu- VII. Loss of Leisure Time – As a nation gets richer, people
ral capital such as water supply. On the other hand, it should be able to choose between spending more time
makes additions to account for items such as household on the job or having more time for family, chores or lei-
and volunteer labor. sure. However, much the opposite has occurred in the
Both the GDP and GPI are measured in monetary ter- last few years. The GDP ignores the loss of leisure time,
ms, which allows comparisons. The index is updated but the GPI considers leisure very valuable. When lei-
annually to provide an accurate and true portrait of sure time increases, the GPI goes up; otherwise it goes
economic progress. down.
64
GPI 14
65
15 GSI
(*) Capital Theory and the Measurement of Sustainable Development: an Indicator of Weak Sustainability’, in Ecological Economics, 8(2), 1993.
(**) Green Adjustments to GDP’ in Resources Policy 20 (3) 1994.
66
GSI 15
Referências
www.worldbank.org/
www.brettonwoodsproject.org/topic/environment/gensavings.
pdf (pg 3)
67
16 HPI
NOTE
HPI differs markedly from the central indicator of natio-
nal income usually used to measure its success – Gross
Domestic Product (GDP). And it also has a different ratio-
nale to the various alternative indicators that begin with
COUNTRY GDP, and then subtract social and environmental costs to
UK create a more accurate measure of economic success.
WHAT IT IS CONTENT
It is an innovative new measure that shows the ecolo- The Index does not reveal the ‘happiest’ country in the
gical efficiency with which human well-being is delive- world. It shows the relative efficiency with which na-
red around the world (by a specific nation or group of tions convert the planet’s natural resources into long
nations). and happy lives for their citizens. The nations that top
the Index are not the happiest places in the world, but
those that score well show that achieving long, happy
ORIGIN
lives without over-stretching the planet’s resources is
NEF (the New Economics Foundation) was founded possible. The HPI shows that around the world, high
in 1986 by the leaders of The Other Economic Summit levels of resource consumption do not reliably produce
(TOES), which forced issues such as international debt high levels of well-being (life satisfaction), and that it is
onto the agenda of the G7 and G8 summits. possible to produce high levels of well-being without
excessive consumption of the Earth’s resources. It also
As an independent think-and-do tank that inspires and reveals that there are different routes to achieving com-
demonstrates real economic well-being, it aims to im- parable levels of well-being. The model followed by the
prove quality of life by promoting innovative solutions West can provide widespread longevity and variable life
that challenge mainstream thinking on economic, envi- satisfaction, but it does so only at a vast and ultimately
ronment and social issues. It works in partnership and counter-productive cost in terms of resource consump-
puts people and the planet first. tion.
NEF works with all sections of society in the UK and The Happy Planet Index (HPI) strips the view of the
internationally – civil society, government, individuals, economy back to its absolute basics: what we put in
businesses and academia – to create more understan- (resources), and what comes out (human lives of di-
ding and strategies for change. It works on specific pro- fferent length and happiness). The resulting Index of
ject areas through practical pilots and tools for change, the 178 nations for which data is available, reveals that
in-depth research, campaigning, policy discussion. the world as a whole has a long way to go. In terms of
delivering long and meaningful lives within the Earth’s
The Happy Planet Index (HPI) was launched in July
environmental limits – all nations could do better. No
2006 and NEF’s report, The Happy Planet Index: An
country achieves an overall ‘high’ score on the Index,
index of human well-being and environmental impact,
and no country does well on all three indicators.
was published in association with the nonprofit institu-
tion Friends of the Earth. No single country listed in the Happy Planet Index has
68
HPI 16
everything right. We have to acknowledge from the than that of the USA. “People can live long and be ha-
start that, while some countries are more efficient than ppy without having to use more than their fair share of
others at delivering long, happy lives for their people, the planet’s natural resources”, according to the report
every country has its problems and no country perfor- released on the foundation’s website.
ms as well as it could. Yet, fascinatingly, it is possible
to see patterns emerging that point to how we might Cuba and Vietnam, countries that represen¬ted the
better achieve long and happy lives for all, whilst living “red scare” in the 1960s, are now happiness paradises,
within our environmental means. ranking more than 100 positions above the USA.
According to the survey, the USA and Germany show
The challenge will be whether we can learn the lessons
similar satisfaction and life expectancy levels, although
of the HPI and apply them.
the Germans, who ranked 81st, have an “ecological re-
The index is built from three different indicators, two serve” or an area to support its population, half the size
of which are objective: life expectancy and the ecologi- of the USA’s.
cal footprint – a measure of our use of environmental
Among the G8 members, Italy was the highest ranked
goods and services. The third indicator is people’s sub-
country, in the 66th position, whereas Russia was the
jective well-being or “life satisfaction”. (Note that the
worst at 172nd, near the lowest ranking in the world.
way people report their life satisfaction corresponds
Among the wealthy nations, Japan, Canada and France
to objective factors such as their mental and physical
ranked 95th, 111th, and 129th, respectively.
health).
The Central American countries accounted for nine out
STEP BY STEP of the ten first positions of the happiest countries. The
African economies, including Swaziland and Equatorial
How it is calculated: Guinea, are among the last ten.
The HPI incorporates three separate indicators: ecolo- Brazil ranked 63rd (HPI of 48.6), way behind Argenti-
gical footprint, life satisfaction and life expectancy. The na, 47th (HPI of 52.2). Colombia ranked 2nd (HPI of
statistical calculations that underlie the HPI are quite 67.2). The unhappiest country in the world, Zimbabwe,
complex. However, conceptually, it is straightforward ranked last (HPI of 16.6).
and intuitive:
Based on these findings, NEF proposes a global ma-
nifesto for a happier planet. NEF highlights the policy
Satisfação com a vida x expectativa de vida
HPI = areas on which countries with low life expectancy, poor
Pegada ecológica life satisfaction or high ecological footprint must focus,
so that we can all live within our environmental limits
The HPI is calculated by multiplying life expectancy by and increase well-being for all.
life satisfaction. This result is then divided by the en-
vironmental impact of each country, including CO2 REFERENCE
emissions. www.neweconomics.org/gen
PDF: www.neweconomics.org/gen/uploads/dl44k145g5scuy
RESULTS 453044gqbu11072006194758.pdf
The index was compiled for two months with the help Calculate you own HPI
http://www.itint.co.uk/hpisurvey
of data from the World Health Survey (UN), published
in 2003, the statistics of the World Database of Happi-
ness, 2005, and a research on consumption and envi-
ronmental impact carried out by World Footprint.
178 countries, whose information was available, parti-
cipate in the HPI ranking.
On a 0 to 100 scale, Vanuatu ranked first with an HPI
of 68.2, whereas the USA reached an HPI of 28.8 and
ranked 150th. The UK achieved HPI of 40.3 and was
ranked 108th. The Vanuatu islands residents live around
69 years, nearly eight years less than the North-Ameri-
cans and their per capita GDP is US$ 2,944, 13-fold less
69
17 IDS
Sustainable OBJECTIVE
IBGE CONTENT
Brazilian Institute of The latest version (2004) gathers 59 indicators, inclu-
Geography and Statistics ding 12 new ones regarding emerging issues, thus ena-
bling a more comprehensive assessment of the sustai-
nable development.
They are presented in four dimensions:
• Environmental: 22 indicators
• Social: 19 indicators
• Economic: 12 indicators
• Institutional: 6 indicators
70
IDS 17
As for the social dimension, the indicators address The institutional dimension, on its turn, broken into
themes such as population, labor and income, health, the themes institutional framework and institutional
education, housing, and safety, all of them related to capacity, provides information on political orienta-
human needs satisfaction, quality of life improvement, tion, ca¬pacity and efforts made towards the neces-
and social justice. sary changes for the implementation of sustainable
development.
SOCIAL DIMENSION
INSTITUTIONAL DIMENSION
23 - Population growth rate
54 - Ratification of global agreements
24 – Indigenous population and land
55 – Existence of local councils
25 – Gini Index on income distribution
56 – Research & development expenditure
26 – Unemployment rate
57 – Public expenditure on environmental protection
27 – Per capita family income
58 – Access to telephone services
28 – Average monthly income
59 – Access to Internet
29 – Life expectancy at birth
30 – Infant mortality rate The indicators are presented in tables, charts and maps,
31 – Total malnutrition prevalence whose variables used in their construction, the rationale
32 – Immunization against infectious diseases in children and, in some specific cases, methodological comments
were previously described in a form. The end of the pu-
33 – Contraceptive methods use rate
blication brings a glossary of terms used, and includes
34 – Basic health care provision
information on history, the country, the states and, when
35 – Environmental sanitation-related diseases possible, follow up and analysis of phenomena taking
36 – Schooling rate place in the country along time.
37 – Literacy rate
The current version presents an additional matrix of re-
38 – Schooling
lationships between indicators, which shows the links
39 – Adequate housing among these data, a chart providing an indicators over-
40 – Homicide rate view and a list of indicators according to guidelines for
41 – Coefficient of mortality from transport accidents the transition to sustainable development, with referen-
The indicators’ economic dimension seeks to portray ce to equity, efficiency, adaptability and attention to fu-
the macroeconomic and financial performance, ture generations.
impacts on material resources consumption, and Information is available in the CD-ROM that accompa-
energy use by addressing the themes economic nies the publication.
outlook and production and consumption patterns.
Referências:
ECONOMIC DIMENSION
www.ibge.gov.br
42 - Gross domestic product per capita
www.ibge.gov.br/home/geociencias/recursosnaturais/ids/
43 – Investment rate default.shtm
71
18 IEWB
Well-being – IEWB and comprehensive than the GDP2, aims to help the
in¬dividuals of a society to evaluate and decide whe-
ther the decisions and public policy adopted in one
Centre for the Study country can bring effective societal improvements.
CONTENT
(1) A non-profit, national, independent organization that seeks to contribute to a better understanding of trends in and determinants of productivity, living standards and
economic and social well-being through research.
(2) For the Centre for Study of Living Standards, GDP measures consumption incompletely, ignoring the value of leisure and longer life spans, and it also ignores the
value of accumulation for future generations. Furthermore, since it is an average, GDP per capita gives neither indication of the likelihood that an individual will share in
prosperity nor the degree of anxiety with which individuals contemplate their futures.
72
IEWB 18
RESULTS
REFERENCE
www.csls.ca/iwb/macdonald.pdf
www.csls.ca/iwb.asp
www.csls.ca/iwb/iewb-guide.pdf
73
19 IPRS
Index
During the publicity work carried out in 2003, main-
ly during regional meetings, attended by over 3 thou-
sand people, comments and suggestions were made to
improve the variables and indices that comprise the
Seade Foundation IPRS. Through the Legislative Forum for Sustainable
Economic Development, the State Capitol, together
with the Seade Foundation, promo¬ted a series of de-
bates with technicians and specialists in economics,
health and education, aiming to improve both the IPRS
methodolo¬gy and applicability.
OBJECTIVE
The current version, based on 2002 data, provides a
portrait of the social and economic situation of the mu-
nicipalities, their recent history and main challenges, as
well as analyses and com¬parisons of the index evolu-
tion in each State municipality or region regarding we-
alth generation and impact on its social indicators.
CONTENT
The IPRS is composed of four indicators: three com-
bined sectoral indicators (*), which measure the cur-
COUNTRY rent conditions of a municipality regarding income,
schooling and longevity – allowing a ranking of the 645
Brazil São Paulo State municipalities according to each one
of these dimensions; and a typology composed of five
WHAT IT IS groups called IPRS groups (**), which summarizes the
municipalities’ situation according to the three axes,
The IPRS is a system of social and economic indicators
but without ranking them.
of each municipality of the State of São Paulo aimed at
providing information for the development and asses- The three combined indicators are presented on a scale
sment of public policy created to help develop the sta- ranging from 0 to 100, in a linear combination of a set
te mu¬nicipalities. It is not an ordinary development, of specific variables. The weighting structure was achie-
but one the society participates in and benefits from ved following a factorial analysis model to study the in-
in search of better governmental economic and social terdependency level among the different variables.
balance.
(*) THREE COMBINED SECTORAL INDICATORS:
74
IPRS 19
RESULTS
Note
By ranking the State of São Paulo municipalities accor-
ding to different development levels, the IPRS do not
fully answer questions concerning existing equity and
poverty in the referred locations. This is because, even
in better positioned municipalities within the groups,
particularly the larger ones such as São Pau¬lo and
Campinas, there are portions of their territories with
large segments of population exposed to different con-
ditions of social vulnerability. From this realization, the
Seade Foundation and the State Capitol created the
IPVS – Índice Paulista de Vulnerabilidade Social (State
of São Paulo Social Vulnerability Index), which allows a
75
20 ISEW
CONTENT
76
ISEW 20
RESULTS 200000
Besides the United States, the Daly and Cobb methodo-
0
logy has been adopted in countries like the Netherlands,
1965 1970 1975 1980 1985 1990 1995 2000
United Kingdom, Austria, Australia, Ita¬ly, Switzerland,
Germany and Chile, A common trend has been noticed
for all countries: national welfare has diverged from the GDP ISEW
GDP since 1970.
Calculations based on the new index showed that, whi-
le the North American GDP increased substantially
between 1950 and 1985 (measured by the traditional Swedish ISEW
formula), the ISEW has remained the same since 1970. 1000000
According to Daly & Cobb Jr. (1989), as natural capital
SEK per capita (1985 prices)
This evidence is critical not only for the U.S. but for any
country concerned with inaccuracies regarding growth 25000
accounts performed exclusively in economic terms, that
is, disregarding environmental degradation. In the event 0
a country ignores deductions on its natural capital stock, 1950 1960 1970 1980 1995 2000
substantial welfare losses could be incurred even if tradi-
tional measures would point to substantial improvements. GDP ISEW
EXAMPLES
Italian ISEW
1000000 TIP
Lire (m) per capita (1985 prices)
0 REFERENCE
1960 1970 1980 1990 www.foe.co.uk/campaigns/sustainable_development/progress
GDP ISEW
Book: Herman Daly & John Cobb, Jr - “For the Common
Good: Redirecting the Economy Toward Community, the
Environment, and a Sustainable Future,” 1989, Beacon
Press, Boston, Massachusetts, USA.
77
21 ISH
Index Social
CHILDREN
• Infant mortality
Health – ISH
• Child abuse
• Child poverty
YOUTH
ADULTS
• Unemployment
• Wages
• Health insurance coverage
ELDERLY
• Poverty, ages 65 and over
• Life expectancy over 85
ALL AGES
• Homicides
COUNTRY • Alcohol-related traffic fatalities
• Affordable housing
USA
• Income inequality
WHAT IT IS
RESULTS
A composite index that aggregates multiple social va-
As of 1973, the GDP and ISH became no longer equiva-
riables of the U.S.A.
lents. The GDP continues to increase, whereas the ISH
plummets strongly and permanently.
ORIGIN
Five indicators have improved since 1970: infant mor-
The index was developed by Marc and Marque-Luisa tality, high school dropouts, poverty, ages 65 and over,
Miringoff in the mid 1980s, and has been under the res- homicides, and alcohol-related traffic fatalities.
ponsibility of the Fordham Institute for Innovation in
Social Policy of Fordham University, Tarrytown, New Eleven indicators have worsened since 1970: child abu-
York since 1987. se, child poverty, teenage suicide, teenage drug abuse,
unemployment, wages, health insurance coverage, out-
OBJECTIVE of-pocket health costs, ages 65 and over, food stamp
coverage, affordable housing, and income inequality.
The premise of the Index is that American life is revea-
led not by any single social issue, but by the combined In 2004, the latest year full data was available, the ISH
effect of many issues, acting on each other. In looking at stood at 54 out of a possible score of 100, the lowest
social problems that affect Americans at each stage of score since 1998. Between 1970 and 2004, the index
life – childhood, youth, adulthood, and the elderly – as worsened from 69.2 to 54.0, a drop of 22%.
well as problems that affect all ages, the Index seeks to
provide a comprehensive view of the social health of REFERENCE
the nation. iisp.vassar.edu/ish.html
M & M-L Miringoff., the social Health of the Nation: how
CONTENT America is really doing? (NY Oxford University Press 1999)
78
LPI 22
79
23 RCI
Responsible
was coordinated by AccountAbility with the support of
Rockefeller Brothers Fund in association with Fundação
Dom Cabral (Dom Cabral Foundation), the UN Global
Competitiveness Compact and partners from Africa, Asia, Europe and La-
tin America.
CONTENT
The Responsible Competitiveness Index provides me-
tric and methodology for exploring the relationship
between corporate responsibility and competitiveness,
and includes the National Corporate Responsibility In-
dex that measures the national state of corporate res-
ponsibility covering 85 countries across five continents,
based on criteria that include the level of corruption,
civil freedom, corporate governance, and environmen-
tal management to set the global ranking.
COUNTRY
RESULTS
United Kingdom
Responsible Competitiveness’s findings are based on a
WHAT IT IS wealth of sector and issue-specific cases from Brazil,
Cambodia, Chile, Europe and South Africa, two new
It is an index that builds the relationship between the innovative country-level indices, and findings emerging
state of corporate responsibility and the competitive-
from a Global Policy Dialogue on Responsible Compe-
ness of nations.
titiveness conducted over two years in association with
the UN Global Compact and partners from Africa,
ORIGIN
Asia, Europe and Latin America.
In order to develop the index, AccountAbility, an interna-
tional organi¬zation based in London that works to make The latest issue of the report “Responsible Competiti-
companies more transparent about their impacts on pe- veness: Reshaping Global Markets Through Responsi-
ople and the planet, first diagnosed the state of corporate ble Business Practices – Latin America”, presents the
responsibility in 80 countries by assessing criteria such as results of studies carried out with the Responsible
cor¬ruption, environmental management and corporate Competitiveness Index and the National Corporate
governance in each one. The research drew on the World Responsibility Index (NCRI) “. This report, launched in
Economic Forum’s Growth Competitiveness Index, which late 2006, results from the collaborative effort of Ac-
defines competitiveness as the ability of a country to rea- countAbility, FDC and Incae, and the generous support
ch medium and long-term sustainable growth, to produce of the Business Forum and Fundemas. The study is ba-
the Responsible Competitiveness Index. sed on a wealth of sector and issue-specific cases from
The innovative National Corporate Responsibility Index Bolivia, Brazil, Central America and Chile, as well as
and Responsible Competitiveness Index were developed other countries and regions.
from a Global Policy Dialogue on Responsible Competi-
The report assesses the Latin American progress towar-
tiveness, carried out in 2004, in association with the UN
Global Compact and partners from Africa, Asia, Europe ds the responsible competitiveness goal. Realizing this
and Latin America. goal requires markets and regulation that create a “race
to the top” of escalating productivity, human develo-
Production of this Responsible Competitiveness report pment and environmental responsibility. The potential
80
RCI 23
exists for such positive relationship, but a competition 6. Trade, investment and competition rules need to be
driven “race to the bottom” remains a very real possi- sensitized
bility. 7. Responsibility standards need to be better aligned with
competitiveness opportunities
Latin America faces a unique set of competitiveness
challenges. The latest competitiveness indices show CAs shown in this report, Latin America has good
that, while some countries in the region have rapidly examples in each area, but there is a lot to be done.
improved their medium-term growth potential, others
The report illustrates how strategies rooted in Res-
remain static or even show signs of worsening in com-
ponsible Competitiveness can play a significant role in
parison to their competitors. The facts of pervasive po-
enhancing a country’s economic competitiveness. Ba-
verty and inequality suggest that the “trickle down” of
sed on these practices, governments worldwide, as well
undirected economic growth will not deliver sustaina-
as businesses, will increasingly build responsibility is-
ble development on its own. What is required is a more
sues into their strategies to develop and maintain their
responsible form of competitiveness.
national competitiveness.
Latin American countries have advanced towards cor-
porate responsibility. In this sense, Latin America’s RESPONSIBLE COMPETITIVENESS...
progress is uneven and varies from intermediate to the
lowest levels among the 85 countries that comprise the Predicts that governments worldwide, as well as busi-
data. nesses, will increasingly build responsibility issues into
their strategies to develop and maintain their national
The main findings of the National Corporate Respon- competitiveness. It provides a robust policy framework
sibility Index are: for this purpose and proposals for both policy and re-
• Nordic countries score well. Although Norway is an search.
exception (12th), the other Scandinavian countries rank
among the five top ones (Sweden, first; Finland, second; and Responsible Competitiveness is the precondition for
Denmark, fourth) an acceptable, viable globalization that aligns the ex-
• South Africa is the highest ranking emerging economy tension of business opportunities and roles in develo-
(excluding Eastern Europe), followed closely by Korea, Chile, pment with reductions in poverty and inequality, and
Malaysia, Costa Rica and Thailand. environmental security.
• China ranks 66, whereas India, its major Asian competitor,
ranks above, at 43. In 2007, AccountAbility and its partners will launch a
new Responsible Competitiveness Report to monitor
• There are no Latin American countries in the upper third of
the Index. regional and worldwide progress.
• The regional leaders, Chile (29) and Costa Rica (32), are
among the top countries in the upper third. REFERENCE
• There is an intermediate group of countries, in which Brazil www.accountability21.net
(37), Panama (47), El Salvador (50) and Mexico (54) are www.accountability21.net/uploadstore/cms/docs/Competitivi
included. dade%20Responsavel.pdf
• The third group of Latin American countries is placed in the Relatório 2006 (Am. Latina)
lower third of the global ranking. 10 out of 18 countries from
this region included in the ranking are in this group. • Sumário: www.accountability21.net/research/default.
asp?pageid=242
Advancing responsible competitiveness requires the de- • Íntegra: www.accountability21.net/uploadstore/cms/docs/
velopment of actions in several fronts: Competitividad%20Responsable.pdf
1. Strategy-aligned corporate responsibility
2. Collaborative approaches to raising the bar
3. Sector-based strategies, including medium-sized and
small companies
4. National and regional strategies to build on multi-sector
synergies
5. Investor responsiveness
81
23 RCI
90
Latin America
Emerging countries
Other
80
70
Argentina
Dominican Republic
60 Peru Russia
Colombia
50 Panama
GCI Ranking
Brazil
India Uruguay
30
20
Chile
10
0
0 10 20 30 40 50 60 70 80 90
NCRI Ranking
82
SF 24
ORIGIN
STEP BY STEP
The SF is the product of a joint development effort be- SOCIAL BOTTOM LINES
tween the Center for Sustainable Innovation and the
University of Groningen in the Netherlands. A cor- They are measures of social behavior sustainability – col-
porate sustainability accounting method that makes lective organizational behavior in particular. They result
it possible to measure and report on its non-financial, in numerical “social bottom lines” or scores and take the
multi-bottom line impacts. form of quotients:
The CSI is a non-profit corporation created in 2004 by - The denominator expresses the per capita or per-
its founder, Mark W. McElroy. Its purpose is to con- organization share of gaps in social conditions required for
human well-being.
duct research, development, training, and consulting
for, and with, companies around the world interested - OThe numerator expresses actual per capita or per-
in achieving sustainability in the conduct of human organization contributions to closing or creating this gap.
affairs, especially their own. The organization is parti- - Quotients less than 1 are unsustainable.
cularly interested in promoting sustainability as social
Calculating a Social Bottom Line –
learning.
A 5-step Process
1. Determine overall amount of anthro capital needed, and
OBJECTIVE divide by total population in geographical area of interest
(i.e., to arrive at a per capita share of what it would cost
It is a measurement and reporting tool that quantifies
to create or supply the required capital in a particular
the social sustainability of an organization. What really geography) – expressible in dollars “per person” or per
differentiates the Social Footprint from other sustainabi- “People Foot”1.
lity reporting tools is that it is the first quantitative tool 2. Calculate number of People Feet1 associated with the
for calculating social bottom lines based on rigorous sus- social system under analysis (e.g., an adjusted employee
tainability theory. headcount that reflects the proportion of time workers span
83
24 SF
in their lives actually working, or at work). natural capital use (or its services), such as the Ecological
Footprint’s notion of ecologically productive land (in global
3. Multiply the per capita need calculated in Step 1 by the
hectares) used per annum by a society.
number of People Feet in the social system of interest per
Step 2. This is the social system’s (e.g., an organization) • The denominator reflects an organization’s proportionate
“Own Share of Supply Needs for Anthro Capital” – often share of the rate of the same natural capital/services
expressible in monetary terms. production and/or renewal in the ecology, also expressible in
terms of global hectares per annum, or some other measure.
4. Measure the size of the social system’s contributions or
• Quotients less than or equal to 1 (≤1) are sustainable
impacts in the anthro capital area of interest. This is the
because usage rates either match or fall below natural
entity’s “Total Social Imprint” (i.e., the numerator in the capital/services production and/or renewal rates (i.e., the
Societal Quotient) – also expressible in monetary terms. use of natural capital falls within its bounds of renewal).
5. Divide the numerator by the denominator. This results in • Quotients greater than 1 (>1) are unsustainable because
the Societal Quotient (SQ), which is a social system’s Social usage or impact rates exceed the production and/or renewal
Bottom Line in the anthro capital area of interest. rates of natural capital/services, thereby diminishing, and
possibly depleting, stocks of natural capital/services over
Measuring Organizational Sustainability: Measuring time (i.e., the use of natural capital exceeds its bounds of
Social and Ecological Bottom Lines. renewal).
Organizational Societal
Sustaintability Ecological - If true, then sustainable
are 1 AND Quotients are 1
Defined Quotients EQ - If untrue, then unsustainable
SQ
* We take the position that there are many Ecological Bottom Lines and many Social Bottom Lines, each corresponding to impacts on some aspect of ecological and/or
anthro capital, respectively. So-called Economic Bottom Lines are merely types of Social Bottom Lines, and the Financial Bottom Line has nothing to do with any of this.
1 People Feet (PF) is a metrical unit that is mainly used to specify the denominator in a sustainability quotient.
84
WN 25
The Well-being
lity, species diversity, energy use, and resource pressures
into an Ecosystem Well-being Index – EWI.
of Nations The indices are then combined into the Well-being Index
(WI) and the Wellbeing/Stress Index (WSI) that measure
IDRC the ratio of Human Well-being obtained in each country
to ecosystem stress. 67 geopolitical maps codified by co-
The International Research Centre lors describe the performance of 180 countries on both
indices as well as their main indicators. In addition, all
IUCN data is presented in 160 pages of tables and the highly
accessible methodology is described in attachments so
World Conservation Union that readers can make their own assessments.
NOTE
Wellbeing Assessment can be used at any level from
COUNTRY municipality to the world. It differs from other approa-
Canada ches to assessing sustainability in its dual focus on hu-
man and ecosystem wellbeing and its use of the Baro-
WHAT IT IS--- meter of Sustainability to sum a comprehensive set of
A new analysis of the state of the world – a survey that indicators into the HWI, EWI, WI, and WSI.
ranks 180 countries by measuring human development The Wellbeing Assessment method a wide range of hu-
and environmental conservation through the Wellbeing man and ecological aspects than more traditional mea-
Assessment method. sures such as the Gross Domestic Product, the United
Nations’ Human Development Index or the Environ-
ORIGIN mental Sustainability Index (ESI).
The Wellbeing Assessment, a method used in The
Well-being of Nations, was developed and tested with RESULTS
the support of the International Development Research The report shows that all countries enjoying high standards
Centre (IDRC) and IUCN – The World Conservation of living are placing undue pressure on the environment.
Union. It began as a synthesis of several sustainability Thirty-seven countries are close to striking a good balance
assessment approaches, including Prescott-Allen’s Ba- between a healthy population and a healthy environment.
rometer of Sustainability method. But to truly achieve this balance, even these 37 countries
These approaches were tested and improved during the must greatly improve their environmental efforts.
first phase (1994-1996), and then Prescott-Allen deve-
loped the method for the second phase of the IUCN/
IDRC project (1997-99) and The Wellbeing of Nations. The best performing country is Sweden, which earned the
Additional tests of the Barometer of Sustainability and survey’s top ranking, even though the report considers
the complete method have been conducted in Canada, it an “ecosystem deficit” country: it obtains an advanced
India, Nicaragua, Zambia, and Zimbabwe. standard of living through environmental damage.
Germany ranks 13th, Australia 18th, Japan 24th and the
OBJECTIVE United States 27th. In more than 140 nations, ecosystem
It is intended to promote high levels of human and ecosys- stress is higher than human well-being – evidence that
tem well-being, demonstrate the practicality and poten- most people’s efforts to improve their lot are inefficient
tial of the Wellbeing Assessment method, and encourage and overexploit the environment.
countries, communities, and corporations to undertake “The report suggests that a high standard of living is possi-
their own well-being assessments. ble without ruining the environment by changing the way
It is also intended to raise awareness about the need for that development is pursued,” says Achim Steiner, Director
simultaneously planning and managing both human de- General of IUCN – The World Conservation Union--.
velopment and ecosystem protection.
Referências
CONTENT www.iucn.org/en/news/archive/2001_2005/press/wonback.doc
36 indicators of health, population, wealth, education,
communication, freedom, peacefulness, crime, and
equity are combined into a Human Well-being Index –
HWI and 51 indicators of land wealth, protected areas,
water quality, water supply, global atmosphere, air qua-
85
3
Índice de Iniciativas
1. Redefining Prosperity 87
86
WN 1
Redefining Prosperity
Redefining Content
The project is divided into four main parts:
87
2 CMPEPS
La Commission CONTENT
This symposium is organized around three themes:
sur la Mesure des Reconsidering the progress of society: Thinking over
the measures and dimensions of social well-being and
Performances progress, knowing, for instance, that ‘growth’ is not
necessarily a sign of increased well-being of peoples.
88
WN 2
CMPEPS
WG ONE. OUTLINE OF THE WORKS 4. Personal activities (such as leisure, commuting, working
ON GDP-RELATED ISSUES hours).
1. From GDP to real income available, both in the economy 5. Personal safety (such as victimization, fear of criminality,
as a whole and on the household level, taking into conflicts, wars).
account depreciation, decreased resources, environmental 6. Social environment (such as social links, trust,
degradation, international income transfer, adjusted price guaranteed assistance, if necessary).
indexes, reflecting changes in quality and other aspects of
our changing society. 7. Institutional environment (such as freedoms,
participation in politics, judiciary system).
2. Real income available per consumer unit for the different
income classes. The median income as opposed to average 8. Natural environment (such as noise exposure, pollution,
income. access to public spaces).
3. The measures of volume and value based on results Cross-cutting themes
obtained in the domains of health, education and other
non-commercial services, including those provided by the 9. Average quality of life inequalities.
government. 10.Assessment of different methods to summarize
4. Gain/loss of capital/income. information on all life quality areas.
5. Unpaid household labor and income, including inequality This commission drafted nine challenges to be faced to
measures. revise the GDP:
6. Unpaid household labor and leisure. 1. Migrating from GDP to net real income available for
7. Education as investment for human capital, including the whole economy and for the households, taking into
depreciation and investment. account depreciations, resource depletion, environmental
degradation, transfers in and out of the economy, as well as
8. Assessment of safety, especially considering
appropriate price indexes;
accountability of the public sector.
2. Calculating the real income available per consumer
9. Addressing defense expenditures, including safety-related
unit (adjusted household) for different income groups and
public and private expenses. comparing averages to medians;
WG TWO. OUTLINE OF THE WORK ON SUSTAINABLE 3. For health, education and other non-commercial services,
DEVELOPMENT AND ENVIRONMENT including those guaranteed by the government, obtaining
volume and price measures based on outputs;
1. Examining the way relevant environmental variables (such
as air and water quality) contribute to actual well-being 4. Comparing incomes to capital gains and losses;
both directly and indirectly (through production and health 5. Considering unpaid household labor, including
costs). inequalities;
2. Investigating the impact of market failures on classical 6. Comparing unpaid household labor and leisure;
sustainability monetary measures. 7. Considering education as investment to build human
capital, as well as its depreciation;
3. Exploring the use of other measurement methods in order
to value environmental changes. 8. Assessing safety, especially when guaranteed by the
public sector;
4. Incorporating adjustments for resource depletion and
environmental degradation in the various ‘green’ income 9. Considering all defense expenditures, including private
measures (green GDP, green NNI, etc.). expenses with safety.
89
3 France Libertés
90
WN 3
France Libertés
3) An indicator that allows comparison between the tiveness of sustainable development in the Amazon lies
different regions (states, in this case) of Brazil based on the in the interconnected nature of the environmental and
triple vision of its economic dynamics and its social and
social spheres. The social conflicts – sometimes violent
environmental health.
ones – many times originate in economic issues, which
Considering the purposes of indicators, the final pro- are related to the land, ownership rights and forms of
duct could be proposed as: exploitation.
- Sustainable Well-Being Index of the Amazonian Population
The assassination of Chico Mendes in Xapuri in De-
- Amazon Sustainable Human Development Index cember 1988 can illustrate the increased level of a so-
- Amazon Development Quality Index cial conflict that inextricably links the economic side
(exploitation of rubber by communities of rubber ta-
EQUITABLE ECONOMIC DEVELOPMENT
ppers) to the environmental factor (that is part of this
1. Average standard of living extractivist operation). The degradation of nature in the
2. Poverty Amazon has very direct and visible social effects: rapid
3. Employment and unemployment urbanization and poverty are frequently associated with
4. Sustainable forest economy deforestation, pollution and intensive farming. Sustai-
nable development in the Amazon is not an ideological
5. Economic inequality of resources
or remote issue (neither in space nor in time).
6. Trade balance of some basic products
ENVIRONMENTAL DIMENSION
1. Sustainable development of forests (not including
diversity)
2. Sustainable development of agricultural resources
3. Sustainable development of water resources
4. Biodiversity conservation
5. Waste and recycling
6. Carbon dioxide emissions
7. Soil quality and desertification
NOTE
The Acre State Government uses the formula ‘forest go-
vernment’ to stress that it takes the responsibility for en-
suring an ecological system to which man belongs. The
wealth of the state is the wealth of this system.
The Acre State Government, in parallel with similar ini-
tiatives in the State of Amapá, has long integrated the
vocabulary and ideas of sustainable development in its
various actions. This form of development has been
considered a pragmatic and attractive solution for social
and environmental problems that are common in the
Amazon. The main reason that can explain the attrac-
91
4 Orbis
Orbis ORIGIN
In October 2003 the ICONS – International Conference
on Sustainable Development and Quality of Life Indica-
Sustainability Indicators tors was held in Curitiba gathering specialists from all
over the world to discuss alternative indicators to measu-
Regional Base Observatory re prosperity and quality of life on the planet. This led to
the creation of ORBIS in 2004, also guided by the defini-
tions of the 1992 Rio Declaration / Agenda 21; Habitat II
SESI PR – Paraná Industry Conference / 1996; Kyoto Protocol / 1997; Global Com-
Social Service pact / 1999, and Millennium Summit / 2000.
It is certified by the UN Global Urban Observatory
IPD – Paraná (GUO), which leads a global network of urban observa-
Development Institute tories, implemented by the UN-Habitat Programme – for
Human Settlement, aimed at helping implement the Ha-
bitat Agenda and the Millennium Development Goals,
generating national and local information.
It is supported by the FIEP System (Federation of Indus-
tries of the State of Paraná), Paraná Industry Social Servi-
ce (SESI PR), and the Development Promotion Institute
(IPD), among other organizations.
CONTENT
The indicators organized by Orbis are guided by the
Habitat Agenda and the eight Millennium Develop-
ment Goals as defined in the 2000 UN General Assem-
bly in New York, with 191 signatory countries.
Orbis provides information through the website and
printed publications to keep the various sectors of so-
ciety informed about the status of the indicators in the
country
State. It uses the following main tools:
Brazil
MODELO – Local Development Monitoring System
• Organizing and monitoring sustainability indicator All the update is made by Orbis and the data and indica-
systems; tors are collected from official sources.
• Developing studies, analyses and knowledge; Dynamic Report on Local Environmental, Economic and
Social Information
• Supporting reflection and decision-making processes
involving the future of Paraná. System that allows access to environmental, economic
92
WN
Orbis 4
and social information about the municipalities of the Orbis was invited to present its urban observatory im-
State of Paraná, with available data broken down by plementation experience in several national and interna-
municipality, state and country whenever possible. tional events in Germany, Ecuador, Rio de Janeiro (State
of Rio de Janeiro) (2005); Colombia, Canada and Mexico;
Corporate Social Responsibility Mapping
Guarujá (State of São Paulo) (2006); Portugal; Anchieta
Mapping of corporate social responsibility projects, and Vila Velha (State of Espírito Santo); Lençóis Paulista,
enabling the comparison of information between space Santo André and São Paulo (State of São Paulo), besides
distribution of projects, focus area, regional needs, and many cities in Paraná (2007); Belo Horizonte, Brasília,
deprived areas. It allows for better definition of the focus Maceió, Porto Alegre (State of Rio Grande do Sul) (2008).
and area of work, publicity about the organizations; ne-
twork articulation able to mobilize government and civil REFERENCE
society in partnerships to better distribute programs in www.orbis.org.br
the State.
Sources and Access Controls
RESULTS
In 2004, the survey was used to make the report “Indi-
cadores do Milênio na Região Metropolitana de Curi-
tiba“ (Millennium Indicators in the Metropolitan Area
of Curitiba). In 2005, social and economic indicators
were brought up at state level to support the Fórum
Futuro 10, a strategic reflection process on the futu-
re development of the State in the next 10 years. In
2006, it launched the first edition of the “Indicadores
do Milênio para o Estado do Paraná “(Millennium In-
dicators for the State of Paraná), linked to the Nós Po-
demos Paraná (We Can Paraná) Movement. In 2007,
the second edition was launched, together with folders
of the mesoregions and the cities that comprise each
one of them; the data was made available to the parti-
cipants of the Movement’s meetings, and stood out as
an important regional development promotion tool. In
2008, it started a decentralization policy by implemen-
ting the Campos Gerais Regional Observatory and, in
partnership with the UNDP and the UNICEF, it struc-
tured the ODM Brazil Portal, containing the Millen-
nium Indicators of the 5,564 Brazilian municipalities,
to be launched in 2009.
93
5 Bogota, How are We Doing
WHAT IT IS CONTENT
• Poverty and Equality
“Bogotá Cómo Vamos ” – BCV is a citizenship exer- • Urban Mobility
cise that periodically and systematically monitors the • Public Finance
• Public Forum
quality of life evolution, focusing on the accomplish- • Education
• Environment
ment of the District Administration Development • Health
• Responsibility
Plan. • Public Services
The project is the result of an interinstitutional allian-
ce between Casa Editorial El Tiempo, the Corona STEP BY STEP
Foundation and the Bogota Chamber of Commerce. Assessing and Disseminating the Strategies of
The monitoring measures improved access to goods Bogotá Como Vamos
and services of better quality and takes into account
the public perception. BCV has two core strategies to enable the achievement
of its objectives: the first is the assessment strategy who-
ORIGIN se core pillar is the concept of quality of life and the se-
cond is the dissemination strategy, which seeks to com-
This initiative took off during the 1997 electoral campaign
municate to the public the results of all the analysis and
as a result of the lack of accountability that would allow
assessment exercise.
checking the fulfillment of campaign promises of the
mayor-elect and its impact on the city’s quality of life. The The assessment and monitoring exercise carried out by
1991 Constitution provided that citizens should exercise BCV has quality of life as its core concept, described
social control over the management of collective issues by as “the set of citizens’ rights, which are the State’s du-
monitoring the accountability of their local administration. ties, provided for in the 1991 Constitution, such as the
access to quality services in the following areas: educa-
OBJECTIVE tion, health, utilities, housing, environment.” Similarly,
The objectives of Bogotá Como Vamos are to create it is understood that quality of life is a dynamic concept.
positive impact on the quality of life as it builds kno- Consequently, it can change over time and according to
wledge of the city. It consists of a forum for analysis the conditions of the city
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Bogota, How are We Doing
Assessment Strategy forums with the District Administration to carry out the
monitoring for the development, implementation and
In order to carry out the assessment, the project makes execution of the Bogota Development Plan.
use of technical indicators and perception of results, as
well as monitoring of the main issues and problems
RESULTS
(key projects of the Administration and problems of
the population). The main accomplishments of the Project are related
to its impact on the District Administration, which can
The results of technical indicators are those that ac-
count for the impact of the management results and, count on better information that is more relevant, ti-
therefore, show the coverage and quality of basic goo- mely, regular and result-oriented. In addition, the Dis-
ds and services. trict Administration has made its own accountability
processes complementary to the project. Likewise, the
That means the BCV does not assess, for instance, the District Government receives feedback not only from
number of schools built, but the actual increase in ac- the assessment reports, but also from the annual per-
cess to education; or else, in the case of traffic, instead
ception survey, which are used in decision-making and
of the number of kilometers of roads built, the average
in its management self-assessment.
transport time.
Once provided by the Administration, this informa- In this sense, the observations and proposals made by
tion is validated by a panel of experts, by the percep- the BCV have been increasingly taken into account by
tion indicators, and their corresponding coherence the District Administration. The city has a set of indi-
along time, according to the Project’s records. cators that will support the existence of the project as
it continues. Likewise, there are 8 years (since 1998)
The perception indicators show the citizen’s opinion of records of the citizens’ perception, which show the
about the assessment areas. These indicators are re-
city’s change.
lated to the access to quality classification of basic
goods and services as well as to the successes and Currently there are replications of the Project in the ci-
shortcomings of the public and private schools’ ac- ties of Cartagena, Cali, Medellin and Barranquilla, and
countability. Similarly, the citizen can benefit from the the operation of the BCV’s sister project, to assess the
set of public organizations and their main programs in institutional performance of the Bogota Congress, cal-
terms of image, trust and management. led ‘Conselho Como Vamos’ (‘Congress, How are We
In this sense, the perception indicators can show the Doing’).
opinion of the city dwellers about public goods and ser-
Finally, the Project has received many awards: it was
vices and go beyond the technical indicators of result.
given the Dubai International Award for Best Practices
The public perception has been recorded since the to Improve the Living Environment in 2000 and 2002,
first BCV Annual Perception survey was conducted in and was chosen to be presented in the World Bank’s
1998. This survey covers the Bogota urban area, divi- Second Regional Meeting on Social Accountability in
ded into zones, age and gender groups. The informa- the Dominican Republic in 2003 and in the Universal
tion on the public perception since 1998 has enabled Forum of Cultures in Barcelona.
the project to make trend analyses in classification
and provision of basic goods.
REFERENCE
Communication Strategy info@bogotacomovamos.org
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6 Our São Paulo Moviment
city
The movement has been legally organized as Institu-
to São Paulo Sustentável-ISPS (Sustainable São Paulo
Institute), a non-profit institution qualified as a public
interest civil society organization. The Institute’s pur-
Sustainable São Paulo poses are as follows:
- Coordinating the administrative actions of data and
Institutel information collection to support civic and social
mobilization initiatives;
“The basis is the ethics of co-responsibility, - Supporting movements, initiatives, projects and programs
that foster sustainable, economic, social and environmental
the means is mobilization and participation, urban development, especially those focused on the city of
and the end is an equitable and sustainable São Paulo;
São Paulo.” Antonio Carlos Gomes da Costa - Fostering ethics, peace, citizenship, human rights,
democracy and other universal values;
- Conducting studies and polls related to the above-
mentioned activities.
OBJECTIVES
The Movement intends to build a political, social and
economic power able to commit the society and suc-
cessive governments to an agenda and a set of goals
so as to provide all the city’s inhabitants with better
COUNTRY quality of life. It aims to turn São Paulo into a safe, he-
althy, beautiful, solidary and truly democratic city. In
Brazil addition, the Movement seeks the participation of all
the society to gather ideas and propose actions that
WHAT IT IS can contribute to an equitable and sustainable develo-
pment of the city in key areas like Education, Environ-
Non-partisan, inter-religious participatory process that
ment, Safety, Leisure and Culture, Labor, Transport,
works for a ‘sustainable’ city based on successful expe-
Housing, Health and Services.
riences previously carried out in Bogota and Barcelona,
among others. It is supported by hundreds of commu-
nity leaders, civil society entities and organizations, as CONTENT
well as citizens interested in participating in the pro- Guidelines
cess of building a new São Paulo.
I – INDICATORS AND GOALS PROGRAM – HOW WE ARE
AND WHERE WE CAN GET: THE OTHER SÃO PAULO WE
ORIGIN DESIRE
The Movimento Nossa São Paulo (Our São Paulo Mo- Selecting and organizing the main indicators of quality
vement) was born from the perception that the credi- of life in the city (for each administrative unit), so that
bility of political activity, public institutions and demo- they can be used as a basis for political parties, succes-
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Our São Paulo Moviment 6
sive governments and the civil society to commit to other cities and regions of Brazil; Holding in São Paulo
programs and goals for an equitable and sustainable the Sustainable Cities Conference.
São Paulo. Organizing a database of best urban sustai-
nability initiatives. VII - INFRASTRUCTURE
II – CITIZEN MONITORING – SÃO PAULO, Forums, Work Groups, Social Networks; Support
HOW ARE WE DOING Group: to Forums, WGs and Networks, continuous
Continuously communicating and publishing on the maintenance and updating of the ‘Our São Paulo’ por-
website São Paulo Como Vamos (São Paulo, How Are tal and the ‘São Paulo, How Are We Doing’ website.
We Doing), with periodical and regular updating, the
evolution of indicators of quality of life in each city ad- STEP BY STEP
ministrative unit, so they can be systematically moni- The movement’s performance is around 4 major theme
tored by all the society. Systematically monitoring the areas:
works of the City Council. Conducting annual public
opinion polls to learn and publicize the population’s Indicators and goals program:
perception of the different municipal actions in all the
city’s administrative units. I. Selecting and systematizing the main indicators of
quality of life in the areas covered by the city adminis-
III – CITIZEN CULTURE trative units, so that they can be used as a basis for the
civil society, political parties and successive govern-
Carrying out actions and campaigns aimed at changing ments to commit to programs and goals for São Paulo.
the population’s behavior, adding value to the public envi-
ronment, improving self-esteem and the feeling of belon- II. Organizing a database of best urban sustainability
ging to a city that is everyone’s asset and should be kept initiatives.
by everyone (communication programs; proposals for
Example: indicators
S.P.; educational campaigns and participatory actions).
A set of 130 social, environmental, economic, political
IV – PARTNERSHIPS and cultural indicators of the city of São Paulo and each
Promoting partnerships between companies, non- one of its 31 administrative units, which will be studied,
governmental organizations, city administrative units assessed and monitored in the next years. The data was
and departments to implement the Citizen Culture ac- organized by theme areas, with definitions and sources.
tions and campaigns and also to support more urgent 7. Violence
1. Health
social programs (enhancing the day-care centers and 8. Environment
other public services that will be able to receive new 2. Education
support to eliminate their deficits). Partnering with the 9. Culture
3. Labor and income
media to better publicize monitoring of the indicators 10 Budget
4. Social work
and goals and to contribute to the educational cam- 11. Sports
paigns and participatory actions. 5. Housing
12. Monitoring
6. Transport and
V – ENHANCING THE NETWORKS / SOCIAL urban mobility
MOBILIZATION
The process of developing and choosing the indicators
Continuously fostering the incorporation of new lea- involved hundreds of people, tens of civil society or-
ders, companies and social organizations into the mo- ganizations, many companies and several technicians
vement. Establishing forums in all the areas covered and experts gathered in 14 Work Groups (WGs) for
by the city administrative units. Keeping and updating about four months to provide the city with this path.
the ‘Our São Paulo’ portal and the ‘São Paulo, How Are
We Doing’ website as the Movement’s media. The relevant figures, charts, backgrounds and other
data are available at Observatório Cidadão Nossa
VI – EXEMPLARITY São Paulo (Our São Paulo Citizen Observatory), who-
Supporting the development of new movements in se website is www.nossasaopaulo.org.br.
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6 Our São Paulo Moviment
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Our São Paulo Moviment 6
REFERENCE
www.nossasaopaulo.org.br
99
7 Juruti Sustentável
Juruti OBJECTIVE
The creation of development indicators for Juruti and
Sustentável surrounding area is fundamentally based on broad and
democratic participation of all stakeholders through
preparatory visits, workshops using participatory tech-
Funbio – Fundo Brasileiro para a niques, design of appropriate information material, res-
Biodiversidade pecting the time required for adjustment and engage-
ment of the local and regional population, and valuing
the development process as well as the results reached.
(Brazilian Biodiversity Fund)
In parallel with the participatory and informed develo-
FGV – Fundação Getulio Vargas pment, the process includes a comprehensive research
on the knowledge and experiences in Brazil and abro-
ad around the development and sustainability theme,
including a detailed survey of the local and regional
policies and initiatives, so as to contextualize the pro-
ject in the local reality, make a preliminary diagnosis of
the area, as well as a technical-academic monitoring of
the indicators developed aimed at devising metrics and
protocols to support the future tool.
The activities of the indicators development process
consist of: reference research, diagnosis of the baseline,
preparatory visits, workshops in Juruti, Santarém and
Belém for preliminary indicators development, face-to-
face public consultation in Juruti and surrounding area
and on the Internet, development of metrics, protocols
and traceability of indicators proposed, consolidation
COUNTRY of results and first diagnosis in Juruti and surrounding
area.
Brazil
CONTENT
WHAT IT IS
In 2006, a report entitled Juruti Sustentável: Diagnóstico
Sustainable local development model for Juruti and e Recomendações (Sustainable Juruti: Diagnosis and Re-
surrounding area due to changes brought about by the commendations) was issued and it showed a model for
arrival of a company in the area. the implementation of a sustainable local development
agenda. The model is structured around three pillars:
ORIGIN
1. Creation of a local development forum with effective
In December 2005, ALCOA contacted the Getúlio Var- participation of all stakeholders to discuss a common
gas Foundation (FGV), which partnered with the Bra- public interest future, prioritize actions and set a long-
zilian Biodiversity Fund to create a sustainable local de- term agenda.
velopment model for Juruti and surrounding area due
to changes brought about by the arrival of this com- 2. Creation of sustainable development indicators to
pany in the area. monitor the development of Juruti and surrounding
area and enhance the public decision-making processes.
Juruti has one of the largest deposits of high quality • Reference research and draft proposal of development
bauxite in the world. For the population of the town indicators created from survey and detailed review of global
and surrounding area, the arrival of ALCOA brings experiences, with the purpose of supporting participatory
a lot of expectations, uncertainties and memories of construction. Carried out in Nov 2007.
past mining experiences in the Amazon. Many fore- • Diagnosis of social, economic and environmental baseline
see opportunities for growth and economic prosperity. of the municipality of Juruti, developed from supporting
Others are concerned with the risk of impacts on the data, and characterized as a first baseline for monitoring
local development. Carried out in Nov 2007.
quality of life and the environment.
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1. DIMENSION: ENVIRONMENT
Theme: Conservation and Use of Biodiversity
Theme: Mineral Resources
Theme: Land Use
Theme: Soil Occupancy
Theme: Environmental Quality
REFERENCE
http://www.fgv.br/ces/juruti/indicadores/consulta/
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8 Legal Lucas
Legal Lucas do
agricultural activity and allow the products to be tra-
ced and to have free access to the most demanding
world markets. In other words, it aims to build in Lu-
Rio Verde Project cas do Rio Verde a new sustainability concept for the
country’s agribusiness.
COUNTRY
STEP BY STEP
Brazil
Broken down into several phases, the project aims at
reducing the environmental, sanitation and labor lia-
WHAT IT IS bilities to zero in the agricultural activity and allow
The project (Dec 2006) is a unique partnership in Brazil the products to be traced and to have free access to
to make this municipality, located 350 km away from the most demanding world markets.
Cuiabá (State of Mato Grosso), the first one to have After engaging 100% of the landowners, the first pha-
all its rural properties legalized pursuant to the Forest se could be completed with a comprehensive and
Code, turning Lucas do Rio Verde into one of the few georeferenced mapping of the conditions of each
municipalities in the country without social and envi- property, which enables the indication of necessary
ronmental liabilities in the agricultural sector, without measures to rectify existing irregularities.
labor problems, and using agrochemicals appropriately
and safely. Accounting for 1% of the Brazilian soybeans The next phase, which includes a recovery plan for APPs
production, Lucas do Rio Verde, in Mato Grosso, grows (Permanent Preservation Areas), will have as its main
10% a year. support an executive order signed by mayor Marino
Franz defining the Permanent Preservation Areas as
ORIGIN priority ones for governmental action, and establishing
the isolation and prohibition of agricultural activity wi-
It is an initiative of the Lucas do Rio Verde Town Hall thin its boundaries starting from the next crop for pro-
and the TNC – The Nature Conservancy (*), in par- tection and restoration of the natural vegetation.
tnership with the State Department of Environment
(SEMA), Rio Verde Foundation, Lucas do Rio Verde Other support points will be the partnership agree-
Rural Union, State Public Prosecutor’s Office, Syngen- ment signed between the City Hall, the Landowners
ta, Sadia Sustainability Institute, Sadia and Fiagril. Union, the Public Prosecutor’s Office and local agri-
cultural engineers for effective assistance and mo-
nitoring of APPs recovery and the development of a
OBJECTIVE
capacity-building plan for environmental groups to
The project’s main objective is reduce the environ- enable a total control over the impacts of the produc-
mental, sanitation and labor liabilities to zero in the tion activity.
( *) Founded in 1951, The Nature Conservancy (TNC) is one of the largest and oldest environmental NGOs in the world. Working in more than 30 countries, its mission
is to preserve the plants, animals and natural communities that represent the diversity of life on Earth by protecting the lands and waters they need to survive. Present
in Brazil since 1988, it carries out over 20 large initiatives in the main Brazilian biomes (Amazon, Rainforest, Cerrado, Pantanal and Caatinga) aimed at making the
economic and social development compatible with the conservation of natural ecosystems. In the last few years, its actions contributed to the conservation of more than
20 million hectares all over the country, an area equivalent to the State of São Paulo.
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REFERENCE
www.tnc.org/brasil
103
9 BAWB
BAWB –
The main objective of the BAWB - Global Forum
summit was to align theory and practice so that the-
se domains would come up with the understanding
Global Forum that sustainability could become the greatest business
opportunity of the 21st Century. The BAWB-Global
América Latina Forum América Latina, held in Brazil, offers this pers-
pective.
CONTENT
Participants were invited to take part in initiatives
addressing their areas of interest, create their own ini-
tiatives and contribute to a sustainability actions data-
“This moment requires a global, holistic vision. For this base.
vision to be implemented, it is certainly necessary more “Willingness is not enough. Capability is necessary, and
specific actions with common goals and principles.” Ro- that translates into a well-designed project, committed
drigo da Rocha Loures, president of the Fiepr System. people that can give their vital contribution to developing
this collective thinking project and to disseminating it for
WHAT IT IS further development”. Rodrigo da Rocha Loures.
The BAWB / Global Forum América Latina / Call For
Action (GFAL) is a movement that aims to tap into the OBJECTIVES
creativity of its participants to foster cooperation among 1. Raising awareness about the existing opportunities for
building multi-sectoral alliances aimed at education for
institutions, organizations and the society towards a sus-
sustainable development;
tainable world. It is more specifically a call for action in-
tended to identify and implement innovative actions in 2. Sharing strengths and celebrating innovations and
strategies for social, environmental and economic
the field of education by using the Appreciative Inquiry sustainability;
methodology1.
3. Generating a conscious intention and a common vision
for the development of leaders and citizens dedicated to a
ORIGIN sustainable society of the future;
In 2006, the Case Western Reserve University, in part- 4. Developing initiatives that use the strengths of the
academia (universities and schools) and the corporate world
nership with the Academy of Management, which ga- to help build a sustainable and prosperous society;
thers approximately 19,000 management teachers from
5. Acting cooperatively.
90 different countries and around 4,000 companies
worldwide joined by the United Nations Global Com- “The objective is to foster a shared vision of ways to pro-
pact, set up the Global Forum on Business as an Agent vide students with values and tools that make them able
of World Benefit. to act according to the requirements of sustainability. Fo-
cused on a transforming education, understood as a self-
The B.A.W.B – Business as an Agent of World Benefit, a
driven and social education in which the subjects coope-
movement in which the Global Forum is inserted, has been
ratively take charge of learning, which necessarily means
since then the largest summit able to call and attract more
innovation and creativity.” Rodrigo da Rocha Loures
than 1,000 executives from corporations as big as Alcoa,
Toyota and Unilever, among others; renowned business Universities, colleges and business schools should
professors, managers in charge of public policy making, update their curricula to keep up with the challenges
social leaders and young students from all over the world. of the national and global situation. The young people
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that are currently in the university will be performing, • Planning and Implementation Center for Sustainable
in the next decades, in a totally different economic, so- Strategic Projects in Distributed Network
cial and business reality. The curricula should address • Pre-electoral forum for sustainability
the sustainability theme in a cross-cutting way, besides • Creation of a cross-cutting and intersectoral capacity-
incorporating new teaching technologies. building and education center for sustainability
Appreciative Inquiry, developed in the United States by Many organizations consider themselves as a problem
David Cooperrider, can be defined as a positive approach to be solved. People hold meetings to make a list of
to change management and organizational development. problems and then they search for the causes to come
It is a cooperative search for the best in people, their up with solutions. There is a big difference between
organizations and the relevant world around them. It this method and Appreciative Inquiry. In AI, the
involves systematic discovery of what gives “life” to a focus is not on the problem, but on building a desired
living system when it is most alive, most effective, and future based on existing powers. The organization is
most constructively capable in economic, ecological, no longer perceived as a problem to be solved, and
and human terms. Appreciative Inquiry involves, in a becomes the solution, more like a mystery to be
central way, the art and practice of asking questions that unraveled.
strengthen a system’s capacity to apprehend, anticipate,
and heighten positive potential. It centrally involves In short, Appreciative Inquiry allows building
the mobilization of inquiry through the crafting of knowledge in group from what is best in people, in
the “unconditional positive question” often involving collective reflection, inspired by cooperation with a
hundreds or sometimes thousands of people. shared objective.
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9 BAWB
STEP BY STEP OF AN APPRECIATIVE People work on what they share a passion about, what they
INQUIRY SUMMIT most care about and believe will make the difference.
The whole system participates – a cross-section of as many Methodology
interested parties as is practical. That means more diversity Process application has four key stages:
and less hierarchy than usual in a working meeting, and a
• Discovery: mobilizing a whole system inquiry into the
chance for each person to be heard and to learn other ways positive change core through stakeholder engagement
of looking at the task at hand. with the articulation of strengths and best practices. It is
systems or systemic inquiry in the positive core.
We start with an approach to change based on strengths.
Before jointly imagining the future possibilities, first we • Dream: creating a clear results-oriented vision in relation
to discovered potential. It visualizes the highest potentials
reconnect to our main success factors, that is, things that of the organization for positive influence and effect on the
enable us to succeed when we are at our best. world, challenging the status quo.
People self-manage their work and use dialogue – not pro- • Design: creating possibility propositions from the positive
blem solving – as the main tool. That means helping each core alive in all of its strategies, processes, systems, decisions
and collaborations of the organization. It is the design of the
other do the tasks and taking responsibility for our percep- organization’s social-technological architecture.
tions and actions.
• Destiny: initiates a series of inspired actions in order to
Common ground and narrative rich interaction rather implement the discovery, the dream, and the design. It is
the destiny stage in which positive images of the future are
than “conflict management” or negotiation as the frame
sustained. It is a time for continuous learning, adjustment
of reference. That means honoring our differences rather and improvisation in the service of shared ideals. It is time
than having to reconcile them, and searching for meanin- to develop the ‘appreciative eye’ of the organization in all
gs, and direction in stories that honor and connect us to its systems, procedures and work methods.
our “history as positive possibility”.
This methodology is based on five principles:
Inspired action on behalf of the whole – Because the “who- • The Constructionist Principle
le system” is involved it is easier to make more rapid de- • The Principle of Simultaneity
cisions, and to make commitments to action in a public
• The Poetic Principle
way – in an open way that everyone can support and help
make happen. The movement to action is guided by inter- • The Anticipatory Principle
nal inspiration, shared leadership, and voluntary initiative. • The Positive Principle
WORK FRONT CREATED AT GFAL IN SÃO PAULO Out of the countless work fronts proposed, the ones
IN NOVEMBER 2008 that received the most votes by the participants were
REINVENTING THE ECONOMY: IMR - MULTIDIMENSIONAL
chosen for the creation of work groups to perform
WEALTH INDEX: NEW INDICATORS, CURRENCIES AND them either individually or in group.
FLOWSS
Below is the work presentation of Roundtable 36
Participants of the BAWB-Global Forum América La- comprising 17 members: the creation of a Multidi-
tina discussed actions that would help strengthening mensional Wealth Index – IMR.
the relations between the corporate world and the aca-
The IMR is a set of indicators and new currencies that
demia, providing knowledge sharing and identifying
allow for balance in managing the four dimensions of
sustainability-centered business practices as a business
Whole Sustainability: the economic, environmental,
opportunity for the 21st Century, thus fostering the de-
social and cultural dimensions, measured by quanti-
velopment of proposals for innovation and change in
tative and qualitative metrics. The new model in pla-
education, in forms of production, in social construc-
ce prioritizes human values and intangible resources
tion and in forms of consumption, as well as in forms of
(knowledge, creativity and culture), meeting its ob-
political management.
jectives of generating public and private policy based
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BAWB 9
ASPIRATIONAL SYNTHESIS • First meeting of the Task Force to define the bases of the
project and decide on the work groups in each module.
Reinventing the Economy: “Multidimensional Wealth
SHORT-TERM ACTIONS:
Indicators generate Whole Sustainability for mankind
and the planet.” Work groups in the three modules.
PROTOTYPE: • Year 1: first draft presented: next, a campaign to lay the
ground, to be conducted by the society already mobilized
The Multidimensional Wealth Index includes: • Year 2: pilot experience (eg. municipality), monitoring,
aa) Currencies/metrics related to the four dimensions of necessary adjustments – campaign multiplies results
Whole Sustainability (economic, environmental, social and reached and starts laying the ground for others.
cultural) that allow for their measurement, assessment, • Year 3: implementation of beta version at higher level
and exchange. Measuring development and sustainability (eg. State) – start awareness/mobilization campaign at
only by the economic value is like trying to measure liters even higher levels: abroad – Design of communication/
with a ruler. Human and cultural capital; social capital; mobilization campaign to lay the ground for the change, to
technological and environmental capital enable the be run simultaneously with the work groups.
cultural and natural diversities, solidarity, articulation,
traditional knowledge and actions, and creativity to WHO AND WHAT IS NECESSARY FOR IT TO BE
integrate the sustainable development equation. SUCCESSFUL:
b) Set of wealth indicators guided by the concept of • Institution that can host and coordinate the start of the
interdependence and human values and that, when process, with resources and power of engagement to set up
covering the four dimensions of Whole Sustainability, the Seed Group to start the process.
will reach a balance among the material, tangible and
• Seed Group: people and institutions of cross-cutting
intangible sides aimed at quality of life.
nature and focused on human and sustainable development
c) Legislation and policies that transform and rule the that already work on the theme.
economic, social and environmental flows that will enable
• Optional: a series of articles that can lay the ground for
the application of IMR.
the issue, showing its relevance.
WHO IS AND SHOULD BE INVOLVED:
• Multisectoral (public, private, organized civil society, CREDITS
creative people) and cross-cutting Task Force to design
the basis of the process that would be then developed by Lala Deheinzelin www.enthusiasmo.com.br
cross-cutting work groups. Axis: sustainability, innovation,
development, cooperation.
• Institutions whose work is already related to the theme;
selection of professionals with cross-cutting profile from
educational institutions (environment; law, commerce,
culture, politics, development, etc), including ‘users’ and
‘researchers’ (balance between theory and practice). The
Group should include many areas besides the economic one.
SHORT-TERM ACTIONS:
• Search for institutions and names to integrate the initial
Task Force (Currencies Module, Indicators Module, Flow
Regulation Module).
• Antecedents: experience in and information on the theme
(eg. GNH, ICONS 2003, Sustainability Indicators of Nations
and other publications, Creative Economy and Sustainable
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10 Global Action
OBJECTIVE
The Global Action’s mission is to help reduce the so-
cial inequalities in Brazil. The event benefits thousands
of Brazilians every year and ensures free access to a
number of services that foster citizenship. In the last
decade only, the program has rendered over 35 million
services.
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Global Action 10
109
4
Ecolabeling
initiatives in the world
•1 •4
5•
• ••
• • •• •17
•2
•
•18 •19
•14
•16 •20
21•
•22
•3
•23
•15
•24
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Intro
Introduction
“Ecolabelling” is a voluntary method of environmental tions providing third-party labelling. In many instances,
performance certification and labelling that is practised such labelling has taken the form of ecolabels awarded to
around the world. An “ecolabel” is a label which iden- products approved by an ecolabelling program operated
tifies overall environmental preference of a product or at a national or regional (i.e. multi-countries) level.
service within a specific product/service category ba- For further information and elaboration on ecolabelling
sed on life cycle considerations. In contrast to “green” strategies, issues and practices, consult the following
symbols or claim statements developed by manufac- references: www.gen.gr.jp/publications.html
turers and service providers, an ecolabel is awarded by
an impartial third-party in relation to certain products
or services that are independently determined to meet Global Ecolabelling
environmental leadership criteria.
WHAT IT IS
There are many different voluntary (and mandatory) en-
vironmental performance labels and declarations. The The Global Ecolabelling Network, GEN, is a non-profit
International Organization for Standardization (ISO) organisation comprising members from ecolabelling
has identified three broad types of voluntary labels, with organisations from all over the world.
ecolabelling fitting under the Type I designation. COUNTRY
Voluntary Environmental Performance Labelling -- GEN’s head office is in Canada.
ISO Definitions
Type I -- a voluntary, multiple-criteria based, third party
ORIGIN
program that awards a license that authorizes the use After the introduction of Germany’s Blue Angel as the first
of environmental labels on products indicating overall environmental label world-wide in 1978 other European
environmental preferability of a product within a particular and non-European countries followed this example and
product category based on life cycle considerations introduced their own national and supra-regional environ-
Type II -- informative environmental self-declaration claims mental labels.
Type III -- voluntary programs that provide quantified In 1994, some countries united to form the Global Ecola-
environmental data of a product, under pre-set categories of belling Network (GEN) - a non-profit interest group com-
parameters set by a qualified third party and based on life posed of eco-label organisations throughout the world.
cycle assessment, and verified by that or another qualified GEN fosters information exchange about national eco-la-
third party bel activities around the world. International co-ordination
Further, the ISO has identified that these labels share is to promote a progressive development of eco-label pro-
a common goal, which is:”...through communication of grammes in the individual states, especially in those coun-
verifiable and accurate information, that is not mislea- tries which still wish to introduce an eco-labelling system.
ding, on environmental aspects of products and servi- Currently, the 28 GEN member organisations include
ces, to encourage the demand for and supply of those organisations from Belgium, Brazil, China, Denmark,
products and services that cause less stress on the envi- Germany, Greece, United Kingdom, Hong Kong (Spe-
ronment, thereby stimulating the potential for market- cial Administrative Region), Hong Kong (HKFEP), India,
driven continuous environmental improvement.” Israel, Japan, Canada, Korea, Croatia, Luxembourg, New
The roots of ecolabelling can be found in growing glo- Zealand, Norway, Hungary, Spain, Sweden (SIS), Sweden
bal concern for environmental protection on the part of (SSNC), Sweden (TCO), Zimbabwe, Thailand, Czech Re-
governments, businesses and the public. As businesses public, United States of America.
have come to recognize that environmental concerns
may be translated into a market advantage for certain OBJECTIVE
products and services, various environmental declara-
The organisation was formed in 1994 with the aim of im-
tions/claims/labels have emerged on products and with
proving and developing ecolabelling worldwide. Throu-
respect to services in the marketplace (e.g. natural,
gh GEN, the various national organisations exchange
recyclable, eco-friendly, low energy, recycled content,
etc.). While these have attracted consumers looking for information and offer each other technical assistance.
ways to reduce adverse environmental impacts throu-
gh their purchasing choices, they have also led to some CONTENT
confusion and scepticism on the part of consumers. The common goal of these labels is to inform consu-
Without guiding standards and investigation by an inde- mers about environmentally friendly products thereby
pendent third party, consumers may not be certain that giving global support to a product-related environ-
the companies’ assertions guarantee that each labelled mental protection.
product or service is an environmentally preferable alter-
native. This concern with credibility and impartiality has Referencias
led to the formation of both private and public organiza- www.gen.gr.jp
111
1 Intro
AUSTRALIA
HUAN” (193)
Environmental Protection Administration Chinês.
Certification criteria for 51 product groups. Over 12,000
products from 2,000 companies.
ENVIRONMENTAL CHOICE (1991) Websites: www.zhb.gov.cn/english
“Environmental Choice Australia” was launched in 2001. english.sepa.gov.cn/
www.aela.org.au/mrachina.htm
Good Environmental Choice Australia Ltd
Certification criteria for 20 product groups.
COREIA
Website: www.aela.org.au/homefront.htm
austria
KOREA ECO-LABEL (1992)
An initiative from the government of the Republic of Korea.
Controlled and organized by the Korea Environmental
UMWELTZEICHEN-BÄUME (1990) Labeling Association (KELA).
Austria’s Environment Ministry. The label is granted mainly based on product life cycle
analyses.
The Consumer Information Association (für
Konsumenteninformation de Verein - VKI) manages and sets Certification criteria for 85 categories and approximately
the criteria. 700 products.
Criteria for 50 products. Website: www.kela.or.kr/english
Website: www.umweltzeichen.at
CROACIA
BRAzIL
112
Intro 1
SPAIN HUNGARy
113
1 Intro
JAPan
SINGAPORE
114
Intro 1
TCO (SWEDISH
CONFEDERATION OF
PROFESSIONAL EMPLOYEES)
It is a nongovernmental initiative.
TCO 99 is an upgraded version of successful labels such as
TCO 92 and TCO 95.
Label for particularly efficient, easy-to-use and
environmentally friendly computers.
Website: www.tcodevelopment.com
TAIWAN
THAILAND
UKRAINE
EUROPEAN UNION
115
2 Bra Miljöval
Bra Miljöval
The ecolabelling also includes the internationally introdu-
ced labelling system of TCO ‘95 and ‘99 on computers.
STEP BY STEP
Every product affects the environment in several ways
during the different phases of its life cycle. We must
consider how the raw materials are extracted (or what
is consumed in providing a service). We must also think
about how the product is made and what happens to it
when it has been used and discarded. This method of
assessing the total environmental impact of a product
WHAT IT IS is usually called a life cycle analysis.
Bra Miljöval is the ecolabel of SSNC- Swedish Socie-
ReferencE
ty for Nature Conservation - SSNC. It is referred to as
“Good Green Buy” or “Good Environmental Choice”. www.snf.se/bmv/english.cfm
COUNTRY
Suécia
ORIGIN
SSNC started ecolabelling in 1988. The SSNC is
Sweden’s largest democratic environmental organisa-
tion, and at the same time nature’s defence advocate
and green consumer ombudsman. Is the biggest na-
ture conservation and environmental organisation in
Sweden with 170 000 members and 274 local branches
across the whole country
SSNC acts as a sort of consumer ombudsman, or en-
vironmental ombudsman. The work is divided among
273 local groups and 23 county associations around
the country.
ObjeCtivE
Decisions on whom to contract and what to buy due
to environmental aspects, are important as a driving
force towards sustainability. Greening Office Project
helps to put up relevant environmental criteria for
procurement purposes.
CONTENT
The Swedish Society for Nature Conservation is curren-
tly involved in eco-labelling products in thirteen different
criteria groups: Laundry detergents • stain removers and
bleaches • cleaners • toilet cleansers • dishwasher deter-
gents • washing-up detergents • soap and shampoos • pa-
per • nappies and similar products • textiles • electricity
supplies • passenger transport • goods transport.
116
Blue Angel 3
117
4 Bio-siegel
Bio-siegel
WHAT IT IS
“Bio-siegel” is the label granted by the Federal Ministry
for Consumer Protection to organically grown agricul-
tural products and foods.
Country
Germany
content
These products must comply with the provisions of the EU
Organic Farming Regulation (2092/91).
STEP BY STEP
The attainment of Bio-siegel label is a hard task for the
companies willing to bear it, for it determines tight
control over the production, processing and sale of
agricultural foods, which is carried out annually and
encompass all the phases between production and pa-
ckaging.
The interest of the population for this label has increa-
sed considerably in recent years, due to “scandals” re-
lated to foods that posed risks to public health. These
products now go through a strict control, including:
- Ban on irradiation of organic food.
- Ban on genetically modified organisms.
- Renouncement of crop protection with synthetic
chemicals.
- Renouncement of mineral fertilizers of low solubility.
REFERENCE
www.bio-siegel.de
118
KRAV 5
ORIGIN www.krav.se/produktlista/
ObjeCtivE
Krav is a key player in the organic market in Sweden.
Krav is authorized by the Swedish National Board of
Agriculture and the Swedish National Food Adminis-
tration to carry out inspection of organic production
in Sweden.
CONTENT
Note: Krav standards ban the use of GMOs and GMO
raw materials in certified products.
Standards available at http://arkiv.krav.se/arkiv/regler/
senasteEnglish.pdf.
119
6 The Nordic Swan
ObjeCtivE
120
UE Flower 7
STEP BY STEP
ORIGIN
The EU Eco-label scheme has drawn up a set of environ-
The EU ecolabel is managed by the European Union
mental and performance criteria for judging products.
Eco-labelling Board (EUEB), and is supported by the
Only if products meet all the criteria can they be awar-
European Commission, the Member States of the Euro-
ded the EU Eco-label. These environmental criteria will
pean Union, and the European Economic Area (EEA).
take into account all aspects of a product’s life, from its
The European Union Eco-labelling Board consists of
production and use to its eventual disposal (cradle-to-
representatives of consumer and environment NGOs,
grave approach).
trade unions, industry, SMEs and commerce.
Results
ObjeCtivE
Twenty-three different product groups currently exist
It aims to provide simple and accurate guidance to con-
for the Eco-Label. Over 250 certificates have been
sumers. All products bearing the “Flower” have been
awarded to hundreds of products.
checked by independent bodies for complying with
strict ecological and performance criteria.
ReferENCE
ContENT http://www.eco-label.com/french/
The EU Eco-label scheme is open to any product or ser-
vice, except food, drink, pharmaceuticals and medical
devices. There are currently twenty-three product cate-
gories which can receive this award, ranging from tourist
accommodation service, home appliances, cleaning ma-
terials, and mattresses to office supplies, gardening and
Do It Yourself products.
121
patrocínio
apoio institucional