Using a Balanced Scorecard Approach to Measure Environmental Performance: A Proposed Model

Abstract

Environmental aspects have been recognized by today’s organizations as the most important components of value creation that would contribute to the achievement of the goals and success in the future. The purpose of this study is to propose an Environmental Balanced Scorecard (EBSC) model to evaluate environmental performance in business organizations. It also aims to illustrate how the environmental performance aspects can integrate into the Balanced Scorecard (BSC). To achieve the goals of the study, the descriptive analytical approach was adopted for its suitability for the purpose of the study. An EBSC model was developed to evaluate environmental performance with proposed four perspectives and environmental strategic objectives within each perspective. The four perspectives are the customer, internal process, learning and growth and financial. The proposed model will help managers not only to evaluate the environmental performance, but also to plan, manage and control organization’s environmental activities. In addition, it can serve as a template for the organizations which aims to create environmental awareness and pursue environmental sustainability.