Abstract:
Decision-makers in the South African process industry have communicated the need to express all aspects of sustainable development into monetary terms for internal decisions. Especially where new technology developments are undertaken, the region-specific positive and negative impacts should be reflected in the financial evaluations of the related projects. A framework of criteria is introduced to incorporate all aspects of sustainable development of operational initiatives, such as technology management, into the assessment process during project Life Cycle Management (LCM) as a strategic competence. The criteria consider the two life cycles that are fundamental to managers in this process industry sector during project LCM: the asset life cycle that is required to manufacture products, and the product life cycle from which income is derived. The economic criteria of the framework are centred on the internal financial feasibility of a project, whereas environmental criteria are concerned with the external impacts of the asset and product life cycles. The social criteria include both internal and external aspects that are influenced by operational initiatives. A Sustainability Cost Accounting (SCA) methodology is introduced to translate the framework criteria (where possible) into monetary indicators. Existing methodologies from developed countries are adapted for the economic and environmental criteria. In these cases price indexes and discounting is used to obtain monetary values throughout the life of the implemented project. The monetary conversions of the social criteria are region-specific and consider the expenditures for and contributions of the technology to society over its life cycle. A case study in the South African context (to manufacture Gas-To-Liquid diesel) is used as basis to demonstrate the SCA methodology.
