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Eco Efficiency Analysis

Eco Efficiency

Eco Efficiency is the emerging method for transforming un-sustainable development into sustainable development. Specifically, the Eco Efficiency calculation determines the ratio between the value of products and the environmental impacts, and gives clear financial results. These insights help create more goods and services with the use of fewer resources. As a result, this creates less waste and pollution and can improve the bottom line.

An Eco Efficiency Analysis (EEA) is the method that assesses environmental as well as economic aspects of products and services. It is conducted through the integration of financial information into an existing product Life Cycle Assessment (LCA). In an EEA study, the sustainability performance of a product is evaluated by comparing various scenarios. For this, the focus can be on procurement, logistics, manufacturing, distribution and/or sales. Therefore, an EEA can provide hot-spot insights that can be of value in decision-making processes.

This makes an eco efficiency assessment a powerful management application that can assist you in decision-making processes.

Monetization

To be able to compare environmental and economic performance for an eco efficiency analysis, monetization can be a valuable approach. Monetization translates environmental impacts into one simple and globally understood metric: money. Therefore, this calculation can be based on various valuation techniques such as hedonic pricing, travel cost models or stated preference techniques such as willingness to pay, depending on the application.

Here you can see how monetization can also be applied to Natural Capital Assessments, which can also significantly inform decision-making.

Support

If you are looking for expert support, Ecomatters has expertise in conducting LCA and integrating financial aspects for effective eco efficiency analysis. We also have the expertise in developing user-friendly and interactive calculation models and communication tools that are customizable to your purpose and needs. These products serve as flexible and informative tools that can help you make better-informed decisions.

EEA Tools

One of the most efficient ways to apply eco efficiency calculations to your business is to develop an easy-to-use tool. This is because a tool can contain the background LCA’s of several products and/or services, and quickly compare information. Companies can use this tool to apply calculations quickly and efficiently, and use the results to make better-informed decisions.

Case Study: Customer Value Calculator (CVC)

Ecomatters used EEA to develop the Customer Value Calculator (CVC). The CVC is a user-friendly, interactive model, which calculates a business case throughout the value chain. It is fully customizable to customer-specific products and/or scenarios, and the CVC integrates and provides an overview of financial and environmental impacts of the product. The key features of the Customer Value Calculator are:

  • Interactive, MS Excel-based tool with adjustable parameters
  • Suitable for business-to-business communication
  • Based on Life Cycle Inventory (LCI) data
  • Comparison of products’ financial and environmental performance
  • Streamlined user interface
  • Tailor-made for your needs

The CVC is one of the many products that can support you in applying eco efficiency analysis to your value chain in order to make your business more effective.

Ecomatters focuses on using sustainability perspectives and holistic life cycle thinking to create real value for your business. Do you have an interest in seeing how CVC or EEA services can support your business? If so, feel free to get in contact with us.

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Max Sonnen - Profile Picture

Max Sonnen

Managing Director
Pau Huguet Ferran - Profile Picture

Pau Huguet Ferran

Sustainability Lead Spain

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