Benchmarking Using Environmental Performance Indicators: The Japanese Experience

Abstract

The creation of wealth through engineering poses many environmental challenges for mankind. Problems of acid rain, smog, diseases related to the use of hazardous substances in both industrialised and industrialising countries are well known and well chronicled. Pressure on organisations to improve their environmental performance from governments, civil society, environmental pressure groups and society in general has been increasing. The response have been implementation of environmental management systems, enforcement of environmental impact assessment for new projects and the usage of environmental performance indicators to track and benchmark the actual performance of organisations. There are many developments in developing benchmarks based on environmental performance indicators worldwide guided by ISO 14031, with a view to improve environmental quality.This paper discusses this development in Japan, where government laws and regulations have been promulgated and are administered by the Ministry of the environment to guide the organisations in setting up environmental management performance indices, with a view to inform decision making on environmental management in Zimbabwe. Government reports and publications have been used as tools to assist organisations in the process of creating their own indicators. In this respect, a number of possible environmental performance indicators are identified. A study of the environmental targets for the fiscal year 2002 at NEC Corporation, demonstrates how corporate organisations are creating their own benchmarks based on these guidelines. Significant improvements in the environmental performance of the corporation can be inferred. It is argued that government leadership is necessary in order to ensure successful environmental benchmarking. The Japanese experience also demonstrates how laws can enhance environmental performance through the appropriate use of indicators.