Management Notes

Reference Notes for Management

Eco efficiency – Concepts, Aspects, Advantages and Disadvantages | Fundamentals of Entrepreneurship

Eco efficiency

Eco efficiency

Eco-efficiency refers to the management philosophy which minimizes the ecological damage and maximizes the efficiency of the firm’s production process. It is coined by the World Business Council on Sustainable Development. It works on the principles of use of high efficiency production methods and technology, the use of less energy and natural resources for the same amount of production. It also emphasizes for the implementation of more advanced waste management. Using less energy, material, and water, recycling more, and eliminating hazardous products or by-products are the ways to accomplish this.

Eco-efficiency is considered as one of the main tools for promoting the transformation from unsustainable development to sustainable development. It is focused with the concept of creation of more goods and services using fewer resources and creating less waste and promotion.Generally, eco-efficiency is measured as the ratio between the added value of what was produced and the added environmental impacts of that product or service. It addresses the environmental concerns along with it emphasizes on preservation of natural resources, maintenance of industrial efficiency, and development of economy in the nation. It also plays the role of advocacy in the balance development between economic and ecology.

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