Definition of environmental objectives and performance indicators

Performance measurement is typically defined as the process of quantifying actions, where action leads to performance and measurement represents the process of quantification. The core elements of this process are the dimensions, i.e. the criteria used for the evaluation, and the indicators that are the variables used for quantifying the dimensions. In the context of a firm, performance measurement is oriented to assess the efficiency and effectiveness of the firm itself, through the definition of a Performance Measurement System (PMS), that is the set of metrics (indicators) build up for measurement purposes.

Different models of PMS can be retrieved from literature: Hierarchical models, Process oriented models and Balanced Scorecard. The latter, in particular, is one of the most consolidated PMS structure, aimed at providing mangers with sufficient and “balanced” information retrieved from the analysis of the following different perspectives: finance, customers, internal process, innovation and learning.

Although these models have been frequently and successfully applied in the context of a Supply Chain, there is still so much to do in Green Supply Chain Management. The most prominent open issues refers to how the environmental dimension impact on efficiency and effectiveness of a company process and how, accordingly, proper evaluation metrics can be defined. The analysis of the extant literature reveals that there is a huge gap to fill in in this context and, therefore, that large opportunities exist for researchers to face the challenge of reshaping in a more modern and greener perspective the classic PMS models.