Expanded eco-efficiency assessment of large mining firms

Abstract

Assessing eco-efficiency of companies is important to ensure the creation of wealth without compromising the needs of future generations. This work aims to extend the eco-efficiency concept by including in the assessment new features related to environmental benefits and environmental burdens. This concept is implemented using an innovative Directional Distance Function model, which searches for improvements in the magnitude of the indicators and in the composition of the resources consumed. This framework can help firms to become more sustainable by replacing non-renewable inputs with "greener" alternatives. We present an empirical application to large mining companies. Different scenarios regarding managerial priorities for adjustments to firms' economic and environmental indicators are explored. The results obtained and their managerial implications are discussed in the context of mining firms activity.