The Ecological Allowance of Enterprise: An Absolute Measure of Corporate Environmental Performance, its Implications for Strategy, and a Small Case

Abstract

In order to determine the sustainable ecological scale of business activities, the measure ecological allowance is introduced in this contribution. Its main idea is that every enterprise “owns” a certain allowable ecological impact that can be calculated through relating impact and economic performance. This measure then enables the evaluation of absolute environmental performance of a business enterprise, compared to only relative measures as in most other approaches. The measure is explained and detailed with a case from the German automotive industry and complimented by a scenario analysis of different configurations of self-owned and carsharing cars, including technological and economic parameters.

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