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criteria to be used for ranking and prioritising hotspots for action, including a
stakeholder validation process relating to identifi ed hotspots. The next step
includes the identifi cation and prioritization of impact reduction opportunities,
reviewing and validation of the identifi ed hotspots by a larger audience and
identifying implementation gaps and recommendations required to achieve
impact reduction opportunities.
4. Prioritising action : The last step involves using the outputs from the study to
achieve sustainability improvements. Typically, this step would involve action
planning, development of industry guidance and standards, piloting or road- testing
of potential solutions, industry collaborations and voluntary agreements, etc.;
and further working with relevant stakeholders to disseminate and mainstream
proven or effective solutions based on feedback from piloting activities.
2.2 Approaches of Hotspots Analysis
Most hotspots analysis use quantitative, qualitative or a combination of quantitative
and qualitative approaches.
Quantitative approach typically uses quantitative data such as traditional life
cycle assessment data, product data, sales and trade data, input–output data or
material fl ows analysis or contextual market data for the study. Most hotspots analysis
use some form of quantitative approach with stakeholders’ involvement in the
development process according to the study by (Barthel et al. 2014 ). Examples of
hotspots analysis methodologies that use a quantitative approach include the GHG
Protocol’s Value Chain (Scope 3) Accounting and Reporting Standard
2
; and the
GHG Protocol’s Product Life Cycle Accounting and Reporting Standard.
3
Qualitative approach typically involves securing access to extensive expert
knowledge and professional judgment, gaining a better understanding of stakeholder’s
concerns and deeper stakeholder engagement as required. This approach has more
emphases on qualitative elements. The Sustainability Accounting Standards Board
(SASB) Materiality Map
4 is an example of hotspots analysis that uses a qualitative
approach.
Combination approach would use both quantitative and qualitative measures to
identify the hotspots. Such studies use quantitative data, expert opinions and stakeholder engagement to conduct hotspots analysis. Many of the existing hotspots
analysis methodologies use a combination approach to identify sustainability
impacts and improvement action as observed in a recent study (Barthel et al. 2014 ).
2 A copy of the GHG Protocol’s Value Chain (Scope 3) Accounting and Reporting Standard may
be accessed at: http://www.ghgprotocol.org/standards/scope-3-standard
3 A copy of the GHG Protocol’s Product Life Cycle Accounting and Reporting Standard may be
accessed at: http://www.ghgprotocol.org/standards/product-standard
4 The Sustainability Accounting Standards Board (SASB) Materiality Map may be accessed at:
http://www.sasb.org/materiality/sasb-materiality-map/
12 Hotspots Analysis: Providing the Focus for Action
criteria to be used for ranking and prioritising hotspots for action, including a
stakeholder validation process relating to identifi ed hotspots. The next step
includes the identifi cation and prioritization of impact reduction opportunities,
reviewing and validation of the identifi ed hotspots by a larger audience and
identifying implementation gaps and recommendations required to achieve
impact reduction opportunities.
4. Prioritising action : The last step involves using the outputs from the study to
achieve sustainability improvements. Typically, this step would involve action
planning, development of industry guidance and standards, piloting or road- testing
of potential solutions, industry collaborations and voluntary agreements, etc.;
and further working with relevant stakeholders to disseminate and mainstream
proven or effective solutions based on feedback from piloting activities.
2.2 Approaches of Hotspots Analysis
Most hotspots analysis use quantitative, qualitative or a combination of quantitative
and qualitative approaches.
Quantitative approach typically uses quantitative data such as traditional life
cycle assessment data, product data, sales and trade data, input–output data or
material fl ows analysis or contextual market data for the study. Most hotspots analysis
use some form of quantitative approach with stakeholders’ involvement in the
development process according to the study by (Barthel et al. 2014 ). Examples of
hotspots analysis methodologies that use a quantitative approach include the GHG
Protocol’s Value Chain (Scope 3) Accounting and Reporting Standard
2
; and the
GHG Protocol’s Product Life Cycle Accounting and Reporting Standard.
3
Qualitative approach typically involves securing access to extensive expert
knowledge and professional judgment, gaining a better understanding of stakeholder’s
concerns and deeper stakeholder engagement as required. This approach has more
emphases on qualitative elements. The Sustainability Accounting Standards Board
(SASB) Materiality Map
4 is an example of hotspots analysis that uses a qualitative
approach.
Combination approach would use both quantitative and qualitative measures to
identify the hotspots. Such studies use quantitative data, expert opinions and stakeholder engagement to conduct hotspots analysis. Many of the existing hotspots
analysis methodologies use a combination approach to identify sustainability
impacts and improvement action as observed in a recent study (Barthel et al. 2014 ).
2 A copy of the GHG Protocol’s Value Chain (Scope 3) Accounting and Reporting Standard may
be accessed at: http://www.ghgprotocol.org/standards/scope-3-standard
3 A copy of the GHG Protocol’s Product Life Cycle Accounting and Reporting Standard may be
accessed at: http://www.ghgprotocol.org/standards/product-standard
4 The Sustainability Accounting Standards Board (SASB) Materiality Map may be accessed at:
http://www.sasb.org/materiality/sasb-materiality-map/
12 Hotspots Analysis: Providing the Focus for Action