Indicators for measuring environmental sustainability: A case study of the pharmaceutical industry

Ten years after the Earth Summit, a frequently asked question is how much, if any, progress has actually been made toward sustainable development. This article provides insight into the progress made by business in addressing and measuring progress toward sustainable production. Using a five‐level indicator hierarchy developed at the Lowell Center for Sustainable Production, the authors analyzed the environmental sustainability indicators voluntarily‐reported by six pharmaceutical companies, half of which are Global Reporting Initiative pilots. Results demonstrate that most indicators currently being publicly reported address performance or eco‐efficiency (Level 2), a few indicators look at environmental effects (Level 3), only the Global Reporting Initiative pilots are beginning to address and report on supply‐chain and product life‐cycle effects (Level 4), and no companies are addressing carrying capacity issues (Level 5). Based on their experience with other companies, the authors feel that the results of this small, single‐industry survey reflect the current state‐of‐the‐art in terms of developing more sustainable production systems.