Evaluating supply line sustainability and business environmental risk

This paper introduces the concept of using sustainability as a fundamental measure of supply line risk and hence business continuity risk for companies. A novel approach that integrates the sustainability target method (STM) and economic input-output life cycle analysis (EIO-LCA) has been developed to evaluate supply line sustainability and business environmental risk. The objective is to assess sustainability and risk associated with various classifications of supply line commodities. The STM links environmental impact with economic value by uniquely defining resource productivity (RP) and eco-efficiency (EE). In essence, it requires that the economic value of products and services be proportionally not less than the environmental burden they cause. This provides EE=100% as a practical sustainability target for individual businesses that will lead to a sustainable economy and gives a target threshold for risk that is analogous to the sustainability target, allowing unique insight into the relationship of sustainability and business risk.