Joint development of eco-efficiency indicators by Hitachi and Matsushita, 2003 approx.

Joint development of eco-efficiency indicators by Hitachi and Matsushita, 2003 approx.

Around 2003, Japanese manufacturers were under strong pressure to quantify and make comparable their environmental impact against the backdrop of their obligation to reduce CO2 emissions following the ratification of the Kyoto Protocol. Conventional environmental measures were limited to effort targets, and it was difficult to objectively demonstrate environmental performance because standards differed from company to company. To address these issues, Hitachi, Ltd. and Matsushita Electric Industrial jointly developed an eco-efficiency index that quantifies the relationship between product value and environmental impact, and a factor index that indicates the improvement multiplier. Eco-efficiency was characterized by its ability to evaluate efforts to reduce load while maintaining or improving value. It was also expected to be introduced into environmental reports as a basis for comprehensive evaluation of corporate activities, taking into account the entire life cycle, includ
ing manufacturing, transportation, use, and disposal. At the time, regulations such as RoHS and WEEE were progressing in Europe, and environmental performance was at the core of international competitiveness. The joint development by the two companies is a pioneering effort to create a common language for environmental impact assessment among companies, which will lead to CSR and ESG evaluations in later years.