Sustainability Indicators on Environmental, Social and Economic Performance: A Proposal for the Brazilian Oil Industry

Abstract

Abstract The use of sustainability indicators for environmental, social and economic performance evaluation in organisations is a novel subject in Brazil and throughout the world. Normally companies, in a general way, do not accept the use of sustainable-development indicators and concepts for management of their activities, products and services. Indicators are used to measure or compare actual conditions with reference conditions. Indicators can be descriptive and normative. Set up in 1997, the Brazilian Entrepreneurial Council for Sustainable Development (CEBDS), which is linked to the World Business Council for Sustainable Development (WBCSD) and has around 62 associate member companies, has been introducing and disseminating practices and concepts such as eco-efficiency, designed to improve the sustainability of companies. A key member of CEBDS, Petrobras - the Brazilian state-owned oil company, supports its activities and works together with it in some projects. Some international oil companies are using sustainability indicators in projects or activities in determined areas or countries, but this is not a systematic approach. Examples of potential contribution areas for sustainability indicators are the efficient use of energy and natural resources and reduction of emissions (in the environmental area), maximisation of social benefits of business and involvement of interested parties (in the social area), and maximisation of economic benefits of business and inclusion of social criteria in the business decision-making process (in the economic area). In the last few years, Petrobras has been using practices which can be related to the concept of sustainable development, such as financing environmental conservation projects in areas directly or indirectly related to its operations, developing environmental education programs, and publishing corporate reports on social responsibility. The purpose of this paper is to propose a well balanced set of indicators for sustainability - segregated by areas environmental, social and economic or integrated - that can be used either by the Brazilian or the international oil industry. Introduction Nowadays questions such as sustainable development, sustainable growth and sustainable consumption are expressions used to present a new view of economic and social progress that is more encompassing and appropriate for humanity. The concept of sustainable development, as defined in the Report "Our Common Future" - also known as the Brundtland Report - views sustainable development as "the development that meets the needs of the present without compromising the ability of future generations to meet their own needs." In the early 90s, even before the United Nations Conference on Environment and Development (UNCED 92), industries began to concern themselves with the theme of entrepreneurial sustainable development. Entities such as the World Business Council for Sustainable Development (WBCSD) and international oil companies such as Shell and British Petroleum began working on the theme at that time. Later on - in March 1997 - the Brazilian Entrepreneurial Council for Sustainable Development (CEBDS), which is associated to the WBCSD, was founded. At present the CEBDS has 62 associate member companies. It publishes an annual report on the experience of its members [See the CEBDS site (www.cebds.com.br)]. There is also the Brazilian Foundation for Sustainable Development (FBDS), which undertakes sustainable-development projects such as reforestation and others, linked to the paper and pulp industry.