Indicator development in sustainability impact assessment: balancing theory and practice

In this article, the development and operationalisation of forestry-wood chain indicators within the frame of sustainability impact assessment are discussed. The analytical framework follows a distinction between indicator definition and selection in a first phase, and a second operational phase of indicator application in terms of interconnecting material flows, calculation of chain performance and utilisation within evaluation components. A clear boundary drawing effort in terms of the development of indicator definitions, related subclasses, and measurement units as well as the creation of conversion factors between indicator values and individual chain stages supports this. Economic, social and environmental indicators have to respond to data collection needs on individual process levels (that correspond to sub-divisions of the forestry-wood chain). For the usage of indicators within evaluation tools, a functional hierarchy has to be provided that supports clear preference elicitation as well as information on related externalities. In total, this paper aims at demonstrating an enhanced spectrum in the use of sustainability indicators, and the challenges that arise from a developing and applying multi-functional indicators in sustainability impact assessment.