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Chapter 1 Environmental management

and eco-efficiency in CSR

1.1 Eco-efficiency – THE CONCEPT 1

The term ‘eco-efficiency’ was coined by the World Business Council for Sustainable Development
(WBCSD) in 1991. It is defined as creating more goods and services while using fewer resources and
creating less waste and pollution.

According to the WBCSD, “eco-efficiency is achieved through the delivery of competitively priced goods
and services that satisfy human needs and bring quality of life while progressively reducing
environmental impacts of goods and resource intensity throughout the entire life-cycle to a level at least
in line with the Earth’s estimated carrying capacity”. Therefore, eco-efficiency increases the value of the
product or services and optimizes the use of resources.

According to the WBCSD, critical aspects of eco-efficiency are: 2
• A reduction in the material intensity of goods or services;
• A reduction in the energy intensity of goods or services;
• Reduced dispersion of toxic materials;
• Improved recyclability;
• Maximum use of renewable resources;
• Greater durability of products;extension of functions and product life
• Incorporation of lifecycle principles
• Consideration of the usefulness and recyclability of the product/service at the end of its useful life
• Increased service intensity

Eco-efficiency is part of a broader concept called ‘sustainable production and consumption’ (SPC). This
concept involves changes in production and consumption patterns that lead to sustainable use of natural
resources. Businesses play a key role, both as consumers of raw materials and as producers of goods and
services.

1 This concept introduction is taken from the IISD Business and Sustainable Development Global guide https://www.iisd.
org/business/tools/bt_eco_eff.aspx
2 http://docs.wbcsd.org/2006/08/EfficiencyLearningModule.pdf