Thresholds and allocations
Thresholds
A sustainable
Meeting the needs of the present without compromising the ability of future generations to meet their needs or overshooting Earth’s ecological limits (Brundtland Commission). In context of impact measurement, outcomes for people are sustainable if they are within the acceptable range determined by societal thresholds, and outcomes for the natural environment are sustainable if they are within the acceptable range determined by ecological thresholds (Science-Based Targets Initiative and Kate Raworth). Sustainability is the quality of being able to continue over a period of time (Cambridge English Dictionary). Source: Brundtland Commission; Science-Based Targets Initiative; Kate Raworth; Cambridge English Dictionary A level or range of performance that divides sustainable from unsustainable performance. These ranges are set with reference to social norms or planetary limits that have been identified through scientific research. Learn more about Thresholds and allocations. Source: United Nations Environment Programme Finance Initiative (UNEP FI); United Nations Conference on Trade and Development (UNCTAD) (The Cocoyoc Declaration, 1974); Kate RaworthSustainable
Societal or ecological threshold
Figure 1: Social foundations and ecological ceilings
From a measurement perspective, this means that outcomes
Usage #1 A change or event resulting from organisations’ activities and outputs, providing a causal link between the activities/outputs and their impact(s) on people and/or the natural environment Usage #2 The level of well-being experienced by people or condition of the natural environment that results from the actions of the organisation, as well as from external factorsOutcome
The diagram below shows a simple representation of a threshold. An outcome within the acceptable range is positive/sustainable. An outcome outside the acceptable range is negative/unsustainable.
Figure 2: Societal and ecological thresholds determine what level of performance is ‘sustainable’
Research on thresholds is nascent and our understanding of them is growing all the time, meaning that consensus-driven thresholds may still fall short of those that truly indicate sustainability or the unsustainable tipping point.
See Baue. B (2019) Compared to what?
See UNRISD Sustainability Performance Indicators pilot in partnership with r3.0.
Where threshold and allocation methodologies are not yet available, organisations can engage in collaborative initiatives to work towards establishing their own. Ideally, thresholds and allocation methodologies are:
- Rooted in the best available science on the relevant topic;
- Applicable to the specific situation being measured (which can be verified through stakeholder feedback);
- The most aspirational choice feasible; and
- Transparently reported.
Thresholds are critical contextual
Refers to the circumstances that form the setting for an event, statement, or idea, and in terms of which it can be fully understood. Here the term specifically refers to the other information that an organisation needs to collect to fully understand what type of impact has occurred, in order to make a judgement about the nature of the performance. This contextual information is sometimes referred to as the multi-dimensional nature of impact. See Assess Impacts. Source: Oxford English Dictionary Usage #1 A change or event resulting from organisations’ activities and outputs, providing a causal link between the activities/outputs and their impact(s) on people and/or the natural environment Usage #2 The level of well-being experienced by people or condition of the natural environment that results from the actions of the organisation, as well as from external factorsContext
Outcome
Identifying thresholds
The nature of thresholds varies by type of sustainability topic. Some thresholds:
- are rooted in physical realities of what the earth can sustain (planetary limits). Scientists set goals (such as a 1.5-degree scenario) that enable resource budgets to be set (in the case of climate change, relative to the global carbon budget)
- are based on social sciences and the best-available research by experts (e.g. living wage)
- are binary, where a positive outcome is the absence of harm (e.g. injury rate)
- will be universally applicable based on science (e.g. biometric measures like HbA1c level for diabetes)
- need to be contextualised to make the threshold locally applicable (e.g. wage level)
- are quantitative (e.g. wage level, carbon budget)
- are qualitative or criteria-based (e.g. UNICEF criteria for “safely managed” water)
- are purely reflective of social norms or ethics.
Typically, only metrics that directly measure (or have an evidence-based link to) the outcome, and therefore to the level of well-being
The state of being or doing well in life; happy, healthy, or prosperous condition; moral or physical welfare. The OECD Well-being Framework states that the 11 dimensions of well-being are comprised of the outcomes that matter most to people. Source: Oxford English Dictionary, Organisation for Economic Co-operation and Development (OECD)Well-being
This does not mean that proxy
A proxy is an indirect measure of the desired outcome which is itself strongly correlated to that outcome. It is commonly used when direct measures of the outcome are unobservable and/or unavailable. Source: Johns HopkinsProxy
Allocations
Whenever an organisation uses a shared resource or is part responsible for preserving or producing one, a further step is required to establish a fair allocation
Apportioning to organisations or other human populations fair, just and proportionate shares of the responsibility to produce and/or maintain a resource at no worse than the level set by social or ecological thresholds. Learn more about Thresholds and allocations. Source: Adapted from Global Thresholds and Allocations CouncilAllocation
The most appropriate method of allocation varies by sustainability topic. For example, climate change involves apportioning shares of the responsibility to achieve an overall global carbon reduction target to individual emitters, whereas water use involves calculating the water availability in a watershed and fulfilling the needs of others (human and non-human) before assigning limits to individual organisations.
Figure 3: Metrics, thresholds and allocations
Allocation is the process of apportioning the responsibility to maintain thresholds in fair, just and proportionate ways that are specific to an organisation, making them practical for the organisation to apply when setting their own targets for measuring and managing sustainability performance.
See McElroy, M. (2008) Social Footprints
See McElroy, M. (2020) A Brief History of the Birth of Context-Based Sustainability
Figure 4: Translating thresholds for use by organisations
Available thresholds
Science-Based Targets for Nature: Initial Guidance for Business
This guidance helps organisations to set nature-related science-based targets. More generally, SBTn is embarking on a multi-year strategy to develop guidance for translating planetary thresholds and societal goals into company-specific targets for air, water, land, biodiversity and ocean.
Use this resource for the following Actions of Impact Management:
- Set targets and plan: Set a company-specific target that references an ecological threshold for nature.
How To Guide For Setting Science Based Targets
This guide briefly introduces a leading methodology for translating planetary thresholds related to greenhouse gas emissions into company-specific targets. It also provides further links to more detailed implementation guidance.
Use this resource for the following Actions of Impact Management:
- Set targets and plan: Set a company-specific target for greenhouse gas emissions that incorporates an ecological threshold for a given global warming scenario.
- The Science-Based Targets Network is developing further methodologies for determining thresholds and allocations for other topics such as biodiversity, land, oceans, and water.
- The UNRISD Sustainability Performance Indicators project in partnership with r3.0 is helping companies to pilot sustainability performance indicators relative to thresholds.