Discussion Panel—Assessment
of Externalities: Monetisation
and Social LCA
Stéphane Morel, Marzia Traverso and Philipp Preiss
Abstract This paper aims to explore the topic of monetisation of environmental
and social aspects. The content is issued from a discussion panel held in
Luxembourg during the LCM2017 conference. It first explores historical and
methodological aspects. The recommendations are made for companies who intend
to monetise their impacts. Three industrial companies presented their contribution
on their day to day use of monetisation. The key conclusions are twofold. In one
hand, many challenges remain. The implementation is still not always feasible for
all issues and an iterative approach is highly recommended. New methods on social
LCA show a growing interest on this topic from various parties. ISO standards
work is progressing and will support companies and government in their use of
monetisation. From the company point of view, monetisation is a bridge between
environmental and social assessment, and economic evaluation, while it provides a
common unified unit (money). By using a common unit for financial and
non-financial aspects, monetization allows the direct comparison of different
aspects and therewith a more informed materiality assessment. By looking at
impacts, a new perspective on current and future business risks and opportunities is
provided. A better understanding of interdependencies enables more informed
decision making. The monetary language is a door opener to access new stakeholder groups such as finance and accounting to raise awareness for sustainability.
S. Morel (&)
Renault, Alliance Technology Development, Guyancourt, France
e-mail: stephane.s.morel@renault.com
M. Traverso (&)
RWTH Aachen University, Aachen, Germany
e-mail: marzia.traverso@inab.rwth-aachen.de
P. Preiss
Business School, Institute for Industrial Ecology, Sustainable Technology
and Innovation Management, Pforzheim University, Pforzheim, Germany
© The Author(s) 2018
E. Benetto et al. (eds.), Designing Sustainable Technologies,
Products and Policies, https://doi.org/10.1007/978-3-319-66981-6_43
391
of Externalities: Monetisation
and Social LCA
Stéphane Morel, Marzia Traverso and Philipp Preiss
Abstract This paper aims to explore the topic of monetisation of environmental
and social aspects. The content is issued from a discussion panel held in
Luxembourg during the LCM2017 conference. It first explores historical and
methodological aspects. The recommendations are made for companies who intend
to monetise their impacts. Three industrial companies presented their contribution
on their day to day use of monetisation. The key conclusions are twofold. In one
hand, many challenges remain. The implementation is still not always feasible for
all issues and an iterative approach is highly recommended. New methods on social
LCA show a growing interest on this topic from various parties. ISO standards
work is progressing and will support companies and government in their use of
monetisation. From the company point of view, monetisation is a bridge between
environmental and social assessment, and economic evaluation, while it provides a
common unified unit (money). By using a common unit for financial and
non-financial aspects, monetization allows the direct comparison of different
aspects and therewith a more informed materiality assessment. By looking at
impacts, a new perspective on current and future business risks and opportunities is
provided. A better understanding of interdependencies enables more informed
decision making. The monetary language is a door opener to access new stakeholder groups such as finance and accounting to raise awareness for sustainability.
S. Morel (&)
Renault, Alliance Technology Development, Guyancourt, France
e-mail: stephane.s.morel@renault.com
M. Traverso (&)
RWTH Aachen University, Aachen, Germany
e-mail: marzia.traverso@inab.rwth-aachen.de
P. Preiss
Business School, Institute for Industrial Ecology, Sustainable Technology
and Innovation Management, Pforzheim University, Pforzheim, Germany
© The Author(s) 2018
E. Benetto et al. (eds.), Designing Sustainable Technologies,
Products and Policies, https://doi.org/10.1007/978-3-319-66981-6_43
391