My article in July discussed thinking more seriously about “resource productivity” as a driver for innovation in (sustainable) manufacturing paralleling the focus we have on labor productivity. We all know the examples of more output per worker hour thanks to a wide variety of developments from automation to training and scheduling. But, for getting at the root of “impact per unit of GDP” and setting up a path for reduction of that impact, resource productivity is one very important element – perhaps the most important if we think holistically about the costs of resources.
Turns out, not surprisingly, that there is a lot of information available about resource productivity.
For example, the European Union (EU) defines resource productivity as:
“… a measure of the total amount of materials directly used by an economy (measured as domestic material consumption (DMC)) in relation to economic activity (GDP is typically used). It provides insights into whether decoupling between the use of natural resources and economic growth is taking place. Resource productivity (GDP/DMC) is the European Union (EU) sustainable development indicator for policy evaluation.
“Resource productivity of the EU is expressed by the amount of GDP generated per unit of direct material consumed, i.e. GDP / DMC in euros per kg. When making comparisons over time or between countries it is important to use the correct GDP units so that the figures are comparable and changes are not due to changes from inflation or in prices.”
One needs to be careful that we consider carefully the contribution of services (which one might argue are typically less material intensive than, say, automobile manufacturing) to GDP growth so we are not seeming to be improving the “by to fly ratio” as we’ve discussed in the past but it is really reflecting shift, or growth, in other forms of commerce. But, I am not an economist so that’s sufficient warning for me.
Wikipedia defines resource productivity, and couples it to sustainability, as:
“… the quantity of good or service (outcome) that is obtained through the expenditure of unit resource. “
“Resource productivity and resource intensity are key concepts used in sustainability measurement as they attempt to decouple the direct connection between resource use and environmental degradation. Their strength is that they can be used as a metric for both economic and environmental cost.”