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Criteria Cluster
Ratings Summary by “Criteria Cluster”
For ease of summarization, the 15 criteria in have been aggregated
into the following seven Criteria Clusters, which are the
focus of the company-by-company evaluations in the Regional
Sector Reports.
Environmental Management Cluster
includes Criterion 1, on the adoption and implementation of
environmental management systems such as ISO 14001. Strong
positive scores are given to a combination of management systems.
Criterion 2 reflects the scope of engagement by upper management
and the company’s Board of Directors. The Cluster Score
is an average of these two criteria.
Supply Chain and Life Cycle Impacts Cluster
includes Criterion 3, on performance requirements for raw
material suppliers, and Criterion 4 on the use of life cycle
assessments. The Cluster Score here is an average of both
criteria.
Balance of 3rd Party Awards, Costs of Sanctions,
and Transparency Cluster includes Criterion 5, recognitions
and awards, seen as an indicator of corporate environmental
performance, Criterion 6, evaluating the significance and
scope of spills, sanctions and clean-up costs being born by
the company, and Criterion 7, the overall transparency of
the company’s environmental reports and audits. Transparency
covers all aspects from raw materials brought in, through
to manufacturing and residuals, and stewardship of products.
The Conservation of Water and Watersheds
Cluster incorporates two criteria, Criterion 8 on pursuit
of efficient water use and protection of water quality, and
Criterion 9 on watershed protection, including the minimizing
of land conversions.
Nutrient Enrichment, Acid Gases and Toxics
Cluster is represented only by Criterion 10, with seven
metrics measuring the management of risks from emissions,
discharges to aqueous environments, toxic chemical or metal
releases, and solid waste considerations. Management of externalities
from all of these are important aspects of a forward-looking
environmental conservation strategy.
Energy and Greenhouse Gas Management Cluster
includes Criterion 11, energy conservation support through
planning and management, and Criterion 12, steps toward managing
constituents such as greenhouse gases along with other aspects
of urban climate management (through “green” buildings
and conservation landscaping of industrial sites). Although
relatively few companies have such programs in place, those
who do should be recognized for a cost effective form of corporate
competition.
Green Layer Productivity and Biological
Diversity Conservation Cluster includes Criterion 13,
sustaining green layer productivity and carbon storage, and
Criterion 14, the conservation of biological diversity. Both
have relevance for forest or industrial agriculture companies,
but both also are important for electricity generation, chemicals,
and suburban land development. Attention here must be directed
as well to the company’s management of its supply chain.
Human Health Impacts Cluster considers
only Criterion 15, with up to five metrics. Health issues
are not weighted heavily in sectors such as forest and paper,
but are weighted heavily in chemicals and other sectors.
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