THE COMPASS INDEX OF SUSTAINABILITY: PROTOTYPE FOR A COMPREHENSIVE SUSTAINABILITY INFORMATION SYSTEM

Abstract

Comprehensive indicators of sustainability need to be accessible, useful, and attractive to decision makers and the general public. To this end, we introduce a new aggregation, scaling, and presentation methodology. Called the "The Compass Index of Sustainability", it clusters indicators and assessment scores into four quadrants, based on the metaphor of the compass: N = Nature, E = Economy, S = Society, W = Well-being. The clusters are adapted from the theoretical work of Herman Daly ("Daly's Pyramid") as modified by Donella H. Meadows. In application, the Compass turns a complex indicator set into a series of four performance indices, one for each Compass Point, on a 0–100 scale. Normative decisions based on both scientific and social values determine the conversion formula for each indicator. The four indices can be superaggregated to produce an "Overall Sustainability Index". Once established, the scales provide clear signals about sustainability performance over time compared to an absolute or "ideal" target end-state, rather than the performance of other actors. First applied and publicly released in Orlando, Florida, USA, in July 2000, the compass proved a powerful media communications vehicle in that context, resulting in extensive regional news coverage; and it made a significant strategic impact on regional decision makers, specifically in philanthropy. Versions of the methodology are now being applied in several other US regions, cities, and communities, and other applications are being developed to assess and aggregate corporate sustainability performance as well. The authors believe the Compass Index can also be used as an interface or "add-on" to other indicator systems, such as the emerging Global Reporting Initiative; and as a management tool for comparing performance among variables, identifying priorities, and setting clear improvement targets. This paper describes the theoretical foundations of the Compass Index; the implementation of the first prototype in Orlando, Florida; and the impact of that report on local media and decision makers. It also provides a discussion on problems and challenges associated with the model. Note: The Compass Index of Sustainability, in format and methodology, is the intellectual property of AtKisson, Inc. All rights are reserved. Academic research is encouraged, but commercial use is restricted. Please contact the firm for licensing information.