Environmental Engineering Reference
In-Depth Information
Chapter 17
A Pragmatic Profile
Approach to Evaluating
Environmental Sustainability
Investment Decisions
Frank Lefley
University of London, UK
Joseph Sarkis
Clark University, USA
ABSTRACT
This chapter contends that environmental sustainability is a subject of great contemporary importance,
but due to biases associated with traditional project appraisal approaches, projects that have strong
environmental issues may be neglected. The chapter then presents a modified version of the pragmatic
financial appraisal profile model by including an environmental assessment in the form of the 'envi-
ronmental score index.' An illustrative case study is used to outline the important aspects of this new
approach. The chapter concludes that this approach will help to fill a gap in the environmental invest-
ment literature, where there is a paucity of comprehensive, structured, and transparent methodologies
that can prove acceptable to management decision-makers from a variety of functions and viewpoints.
INTRODUCTION
ability in their processes, products and practices,
environmentally influential capital investments
have started to gain significant attention in the
literature (Zhu and Sarkis, 2007).
The importance of environmental sustainabil-
ity has been raised in the literature. Sarmento et
al., (2005) found that 92% of Portuguese com-
Due to the increase of pressures by various stake-
holders on organisations and industry to be more
proactive with regard to environmental sustain-
