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Occasional Papers
No. 17: Measuring Sustainable Development: A Review of Current Practice
by Peter Hardi, Stephan Barg, and Tony Hodge, International Institute for Sustainable Development, November 1997
Summary
This year, 1997, marks the 10th anniversary of the publication of the report of the World Commission on Environment and Development (WCED, 1987) and the fifth anniversary of the 1992 UN Conference on Environment and Development. It provides the last chance for major policy corrections before the new millennium. A review and an inventory of accomplishments in sustainable development are necessary preconditions for any decisions to be made.
How does one measure progress toward sustainable development? The question is simple and its importance is clear, but easy answers do not exist. This paper describes a selection of measurement approaches currently in use, and highlights aspects of particular interest to those designing their own measurement systems.
The first two chapters review the standard concepts of sustainable development and measurement, including indicators as measurement tools: the most common definitions and the basic concepts of sustainable development in Chapter 1 and measurement as an important tool for assessing progress toward sustainable development in Chapter 2. The terms "indicator" and "index", and their functions in the measurement process are also defined.
The third chapter offers practical examples of ongoing measurement work. It includes a worldwide survey of measurement projects and applied indicator sets. The examples represent the major trends of contemporary indicator work. Each example is followed by a brief analysis of its advantages and limitations, and a summary of key points for practitioners. The survey ranges from international cases through national and sub-national projects to local authorities and corporate examples. The details of the indicator sets they use are presented in Appendix A.
At the international level, work under the auspices of the United Nations Commission for Sustainable Development (UNCSD) is reviewed first. Trial implementations are under way in several countries using a set of 140 indicators developed by the UNCSD. The World Bank is taking a quite different approach, evolving a new conceptual model called the four capitals approach, which will require the development of new statistics to measure some components. The third international approach involves the correction of national accounts data that now focus only on economic issues, to incorporate sustainable development concepts. The UN Division of Statistics and several national statistical offices (including Statistics Canada) are leading this effort.
At the national level, Canada has two approaches that are reviewed in this report. The first is Environment Canada's ongoing indicator work, and the second is the linked human and ecosystem well-being approach of the National Round Table on the Environment and the Economy. The Netherlands' system, which is based on that country's National Environmental Policy Plan, is also reviewed along with work under way at the U.S. President's Council on Sustainable Development. All these national approaches try to focus attention on key national and global issues, but also link them back to national-level activities and policies.
Many of the same issues arise at the sub-national level where the exercises under way tend to be oriented toward local issues and grass-roots consultations while still, of course, relating to larger global issues. Corporate indicator work tends to focus on environmental issues, with some steps being taken to integrate initial indicators with financial issues. Little work has taken place that truly reflects the three components of sustainable development.
While the third chapter is a practical survey of existing projects, the fourth chapter offers a conceptual guide. It orients the reader among the various frameworks and models that define the purpose, focus and scope of the practical cases. It also highlights methodological problems to be solved. Finally, it briefly summarizes the present achievements and existing limitations of measurement programs.
The fifth chapter ties measurement to the decision-making process. It clarifies the role of measurement in an integrated management system and analyzes the processes in which indicators are selected and measurement is implemented. Finally, the sixth chapter provides practical guidelines for assessing progress toward sustainable development.
