Ecological Load Factor


Continuing to read a fine line by Hartmut Esslinger. He proposes developing a future market using a pricing index that includes an ‘ecological load factor’. Meaning that the environmental impact of an item a consumer purchases would have an ELF index and the price would increase if the process the manufacture used to produce the item is environmentally unfriendly. If the product utilizes green production processes, sustainable materials, uses less energy and is recycled or returned to the manufacture at the end of its lifespan, the ELF index would be low. If the product did not meet the standards set above then the price for the product would have a higher EFL index. The index would evaluate the ecological impact of manufacturing process of product, materials used and the cost to dispose of the product at the end of its life cycle. Currently, we give tax credits for green initiatives but consumers do not have to pay more at the point of purchase. How would the marketplace change if pricing were altered to reflect the ecological load factor of each item?

How do we prepare for changes to the marketplace? What might we anticipate that supports the mission of our organizations? Where is your enterprise on the ‘green movement’ scale?

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