Linked Indicators

Sustainable development and linked indicators

Sustainable development underpins the linked indicators project. The World Commission on Environment and Development (WCED) defined sustainable development as "development which meets the needs of the present without compromising the ability of future generations to meet their own needs." Achieving sustainable development involves different ways of thinking and working. It requires: looking after people, taking the long-term view, taking account of the social, economic, environmental and cultural effects of our decisions, and encouraging participation and partnerships.

Sustainable development was brought to international attention by Agenda 21 and the 1992 Rio Earth Summit, which focused on the pressures that will need to be resolved if the environment, the economy and communities are to flourish in the 21st century and beyond. Although sustainable development has wide international acceptance, it is important that New Zealand develops solutions and approaches that reflect our unique geography, culture and ways of doing things.

In 2003, the New Zealand Government put together a Sustainable Development Programme of Action. The programme built on The Government’s Approach to Sustainable Development, a report released in August 2002 at the time of the World Summit on Sustainable Development in Johannesburg, and another report on sustainable development indicators, Monitoring Progress Towards a Sustainable New Zealand. It also took into account the report of the Parliamentary Commissioner for the Environment, Creating Our Future: Sustainable Development for New Zealand. The programme of action focused on the Government’s contribution to sustainable development. It put forward a number of projects and initiatives that the Government considers important, including the linked indicators project, which facilitate the monitoring of New Zealand’s sustainable development.

Indicators defined

An indicator is a parameter than can be measured (eg a distance from a goal, target, threshold or benchmark) to show trends or sudden changes in a particular condition. They are reactive to change and simplify complex data into readily usable information that can be used to communicate complex trends or events. Indicators reduce the number of measurements that are normally required to give a complete picture of a situation.

New Zealand’s work on sustainable development

Work in New Zealand on sustainable development is taking place in the context of similar efforts around the world involving international agencies, governments, sector organisations, communities, and individual enterprises. The 1992 Rio Earth Summit raised the profile of environment and development on the international agenda. The 2002 World Summit on Sustainable Development reviewed the implementation of key objectives and secured renewed commitment to the broader aim of sustainable development.

Statistics New Zealand’s contribution to sustainable development

The indicators developed by Statistics New Zealand are linked to a number of information-gathering projects being undertaken by government agencies. One aim is to link the socio-economic indicators with the Environmental Performance Indicators Programme of the Ministry for the Environment in order to monitor the indirect pressures causing environmental change. Likewise, the socio-economic indicators may be used in putting together the sustainable development indicators. Statistics New Zealand is also developing natural resource accounts that will be linked to the indicator projects. Natural resource accounts describe the total available stock of a given natural resource at a point in time and the supply and use of the resource in economic activity. 

The information supplied by the natural resource accounts can be used for a number of the proposed socio-economic and environmental indicators. For example, the fish stock and flow accounts will supply the data required for the ‘consumption of fish’ indicator. Because the accounts are to be developed on an annual basis, the resource accounts will be a regular and reliable source of indicator information. Indicators have an important role to play in the filling of information gaps related to the environment. While specific environmental indicators have an essential role in monitoring specific environmental pressures, states, and/or responses, the future lies in the development of indicators for sustainable development. 

The framework for linked indicators

There are countless individual interactions between the environment, society and the economy. The type of framework to use depends upon a number of factors, including the linkages one wishes to measure. There are a number of frameworks that have been used internationally and nationally to develop indicators to measure these interactions.

The framework used in New Zealand for selecting and developing the linked indicators incorporates the capital model proposed by the Organisation for Economic Co-operation and Development (OECD), and the 'theme-based’ approach used in the 2001 United Nations (UN) framework report Indicators of Sustainable Development: Guidelines and Methodology. The themes and sub-themes specified in the UN framework were grouped into seven main themes considered relevant to sustainable development.

Indicator criteria

Ideally, the indicators satisfy all, or at least a majority, of the criteria listed below. In reality, however, some areas are less represented than others either due to the lack of available data or because they are harder to measure, for example social indicators compared with economic indicators. The criteria for selecting sustainable development indicators were developed after considering a range of criteria used or proposed in various indicator reports. There is a general consensus around most of the points for selecting indicators, and the main differences of opinion centre on the audience and function of the reports.

Statistics New Zealand and the Ministry for the Environment have been working together on a set of social and economic indicators that can be used by the Ministry for integrated environmental reporting. The socio-economic indicators are designed to provide additional information on the social or economic driving forces behind environmental states, pressures and responses. They can also be used independently as measures for reporting on the social and economic state of our environment. The intention, however, is that they be used in combination with the Ministry’s environmental indicators to assist with issue-based reporting.

Although there is some overlap between the socio-economic indicators and the sustainable development indicators, the focus of the two indicator sets is different. The focus of the socio-economic indicators is on providing information that can explain changes in the environment. In contrast, the sustainable development indicators focus on the integration and interrelationships between the economy, society and the environment. The focus of the sustainable development indicator project is therefore much wider.

Criteria for linked indicators

Policy relevant	Monitor the key outcomes of environmental policy and legislation, and inform on progress towards policy goals Measure socio-economic processes of national/regional importance that create pressure on the environment Provide information to a level appropriate for aiding policy decision-making.
Measurable	Measure changes on an appropriate geographic and/or temporal scale Are representative of the system being assessed and show reliability over time Have predictive qualities.
Analytically valid	Were developed within a consistent analytical framework Data is clearly defined, verifiable and scientifically acceptable (credible and robust) Data collection uses standard methodologies with known accuracy and precision (statistical integrity).
Environmentally informative	Are helpful in relating causes, effects and responses Are responsive to environmental change, and allow trend analysis or provide a baseline for future trends.
Cost effective	Require limited numbers of parameters to be established Use existing data and information wherever possible Are simple to monitor.
Simple and easily understood	Is simple to interpret, accessible and publicly appealing Clearly inform about the extent of the issue(s)represented.

The indicators set 

The following linked indicators were selected by representatives of local government as related to developing community outcomes. They were selected from the current range of available indicators in reports regularly published by central government agencies. The set of indicators presented here is not complete. There are several areas of well-being where suitable measures of performance are either not yet available, insufficient in terms of reliability, timeliness or frequency, or not available regionally. In addition, several available measures are not listed, for example rates of smoking as a measure of health, due to central and local government representatives having not yet considered and agreed on their inclusion.

Economic indicators

Economic indicators record levels of income and socio-economic position, which in turn determine the ability of people to purchase goods and services, to obtain adequate food and housing and to participate in the wider community. In cities, which have a diverse mix of populations, assessing the economic standard of living of families and individuals is critical to understanding how the household economy supports local and regional economies.

Social indicators

Social indicators describe the attributes of a society or individuals within a society. They describe the characteristics of individuals do. Social well-being consists of those aspects of life that we as a society agree contribute to our individual happiness, quality of life, and welfare. To get a sense of the level of well-being in New Zealand, and how it has changed over time, we need to identify what those aspects of life are. This is the role of social indicators.

Environmental indicators

Environmental indicators provide information on the built environment, air and water quality, natural resources and biodiversity. The quality of the natural environment is directly related to people’s quality of life. Population growth and economic development put pressure on the sustainability of the natural environment. Pressure for expansion of the urban area into peripheral areas affects the natural ecosystems of both land and sea. Issues such as environmental pollution, waste generation and management, heritage protection, and preservation of indigenous wildlife in built-up areas are all issues to be considered by cities as they grow and develop.

Cultural indicators

Cultural indicators focus on issues of cultural engagement, identity, and heritage. 'Culture' refers to the customs, practices, languages, values and world views that define social groups, for example those based on nationality, ethnicity, region, or common interests. Cultural identity is an important contributor to people's well-being. Identifying with a particular culture gives people feelings of belonging and security, and access to social networks.

Glossary

Links to other reports

New Zealand Links

The Economic Report

Environment performance indicators  

State of the Environment report

International links

Measuring Ireland's Progress

Office of National Statistics (UK) headline indicator set

United Nations Environment Programme Sustainable Development Framework

OECD environmental indicators