1. ASEM Eco-Innovation Index (ASEI) 2012
Measuring Sustainable Future for Asia and Europe
22nd November 2012 Singapore
by Sustinvest

2. ASEM Eco-Innovation Index (ASEI) 2012 Project
 Background of ASEI (1)
The concept of Eco-Innovation was first developed and promoted in Europe. Since then, the
concept has been diffused into national and regional policies and initiatives in Europe.
There has been previous works on developing frameworks or guidelines to measure eco-
innovation but only one index (Eco-Innovation Scoreboard) exists that quantitatively measure
eco-innovation
Eco-Innovation Scoreboard only measures European countries using data source focused on
European countries such as EUROSTATS, EUROBARAMTER
ASEM Eco-Innovation Index is the first attempt to measure eco-innovation of countries
beyond Europe
The concept of Eco-Innovation is slowly understood by Asian countries, thus important
to include Asian countries when measuring eco-innovation status of countries.
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3. ASEM Eco-Innovation Index (ASEI) 2012 Project
 Background of ASEI (2)
In line with the vision of ASEIC(ASEM SMEs Eco-Innovation Center), the ASEI
anticipates Asian countries and companies particularly SMEs to participate in promoting
eco-innovation
To establish an active communication stage between Europe and Asia with eco-innovation data
Stepping forward from understanding the concept of eco-innovation to measuring eco-
innovation
ASEIC Focus Expected Outcome of ASEI
Sustainable Development  Encourage win-win
development of SMEs in
SMEs
ASEIC Member countries
 Enhance communication &
Eco-Innovation
partnership between Europe
& Asia on eco-innovation
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4. ASEM Eco-Innovation Index (ASEI) 2012 Project
 Objective:
To develop as an international tool to quantitatively and qualitatively measure the level and
status of eco-innovation of ASEM member countries
 Project Duration Time:
Started in June 2012 and expect to end in Dec 2012 (scheduled to be officially launched in
December 2012)
 Project Initiated by ASEIC (ASEM SMEs Eco-Innovation Centre) & Funded by SMBA
(Small and Medium Business Administration)
 Project Implemented by:
Sustinvest (Korea’s first Social Responsible Investment & Sustainability Research &
Consulting firm) with support of Sustainalytics
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5. ASEM Eco-Innovation Index (ASEI) 2012 Project
 Expected Outcome:
1) Evaluate each country’s capacity and potential on eco-innovation and identify different
levels of eco-innovation in Europe and Asia
2) Promote eco-innovation at regional and global level creating an active stage of
communication between Europe and Asia
3) Encourage governments to enhance their eco-innovation related policies and regulations
 What is Eco-innovation?
“Eco-innovation is any form of innovation resulting in or aiming at significant and
demonstrable progress towards the goal of sustainable development through reducing impacts
on the environment, enhancing resilience to environmental pressures, or achieving a more
efficient and responsible use of natural resources.”
- European Commission Eco-Innovation Action Plan (2012)
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6. History of Eco-Innovation
1996 2000 2004 2006 2007 2008 2009 2010 2011 2012 2013
EU Commission: - OECD Project on Green Growth
Environmental & Eco-innovation launch
Technologies Action Plan - EU Commission Eco-innovation
Project/Initiative (ETAP) initiative launch initiative launch
European Forum OECD Workshop OECD Global Forum 12th European Forum
on Eco-Innovation on Environmental on Environment & on Eco-Innovation
Workshop/Forum
Launch Innovation & Eco-Innovation
Global Markets
Environmental EU Eco-Innovation The Global Cleantech
Performance Index launch Scoreboard launch Innovation Index launch
Index Development (The Eco-Innovation (Cleantech Group & WWF)
(Yale & Columbia
University) Observatory)
The concept of eco-
Others innovation firstly introduced
(Claude Fussler et al, 1996)
1st ASEM Eco-
ASEM ASEIC
ASEIC Innovation Index
Established
Launch
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7. ASEM Eco-Innovation Index (ASEI) 2012 Project
 Why Measure Eco-Innovation? (1)
1) Importance of Eco-innovation in Green Growth Agenda
Eco-innovation is a “key pre-requisite for sustainable development”* at macro level as it
brings positive synergetic effects towards economic, social and environmental conditions of a
country.
*The future of Eco-Innovation
The Role of Business Models in Green Transformation, OECD, 2011
“Eco-innovation aims to create both economic and environmental value, and business models
act as a value driver and enabler of green technologies and solutions… Many governments
now regard eco-innovation as part of their growth strategy” (OECD, 2012)
“Eco-Innovation is increasingly perceived as a business opportunity, which could emerge in
many different sectors. (UNESC, 2011)
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8. ASEM Eco-Innovation Index (ASEI) 2012 Project
 Why Measure Eco-Innovation? (2)
2) Enhance Comprehensive Understanding of Eco-innovation
“… no existing measurement approach can capture the overall trends and characteristics of
eco-innovation. Further progress in benchmarking and indicators might include the
development of an “eco-innovation scoreboard” which combines different statistics or the
design of a new dedicated survey.”
“Further progress in benchmarking and indicators might include the development of an “eco-
innovation scoreboard” which combines different statistics or the design of a new dedicated
survey” (OECD, 2009)
“… the field of eco-innovation lacks statistics and indicators. The challenge consists very
much of trying to align two well-developed but different set of indicator bodies, the
environmental and the innovation set… a considerable need for conceptual as well as
methodological clarifications in order to develop eco-innovation indicators.”
“So far quantitative empirical analysis of eco-innovation is very limited…. Defining and
operationalizing eco-innovation is the key problem” (EEA, 2006)
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9. Purpose of ASEM Eco-Innovation Index
 Trends: Understand eco-innovation trends in Europe and Asia
 Status: Identify the eco-innovation status of ASEM member countries
 Gap Difference: Close the eco-innovation gap difference between Europe and Asia
 Strength & Opportunities: Analyze strength and opportunities of eco-innovation for
each country and region
 Policy Making: Motivate emerging economies to accelerate the rate of developing and
preparing appropriate eco-innovation policies and strategies at national & regional level
 Raising Awareness: Raise awareness on eco-innovation at local, regional and global
level
 Encouragement: Encourage society and companies to increase eco-innovation efforts
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10. ASEI Development Methodology
Step 1.
Analyze limitations and strengths of current sustainability and eco-innovation related index
Define a clear concept of eco-innovation to be measured
Study related research data and literature Gather feedback from renowned experts Determine assessment standards & countries
Step 2.
Create assessment Select best available data source, Weighting Outcome Report
Aggregation Measure & analyze
framework criteria & indicators determination 1st ASEI 2012
Enhance & improve assessment tool and methodology
2nd ASEI
연구 기획 2013
Incorporate advice & feedback Expand country coverage
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11. Important Factors when building ASEI Framework
Step 1.
Analyze limitations and strengths of current sustainability and eco-innovation related index
Define a clear concept of eco-innovation to be measured
Study related research data and literature Gather feedback from renowned experts Determine assessment standards & countries
 Defining the Concept of eco-innovation
-Assessment framework for eco-innovation vary depending on how eco-innovation is defined
“So far quantitative empirical analysis of eco-innovation is very limited…. Defining and operationalizing eco-
innovation is the key problem” (EEA, 2006)
 Pre-study of sustainability and eco-innovation related indexes: EPI (Environmental Performance
Index), GII (Global Innovation Index), GCI (Global Competitiveness Index), Cleantech Index, EIO
(Eco-innovation Observatory Index), etc.
 Determine Assessing Countries
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12. Selection Criteria of Countries for 1st ASEI
46 ASEM member countries
1st Screening: Economic Level
Select top 30 countries based on the average of
30 countries the country's ranking of GDP in total and that o
f GDP per capita
2nd Screening: Level of Environmental Load
Select top 20 countries with heaviest environment
20 countries al load based on total CO2 emissions, CO2 emissi
ons per capita, trends in CO2 emissions, level of w
ater scarcity and water consumption per capita
15 3rd Screening: Information Availability
countries Select 15 countries based on data availability and
information credibility
ASEI 2012 Assessed 15 Countries
Austria, Belgium, China, Denmark, France, Germany, India, Indonesia, Italy, Japan,
Korea, Malaysia, Sweden, Thailand, United Kingdom
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13. ASEI Development Methodology
2nd Stage: Index Development & Assessment (1)
Pre-studied eco-innovation frameworks consisted of input, process
Create assessment framework and output criteria
Select best available sources ASEI framework consists of four criteria:
for indicators -eco-innovation capacity
-eco-innovation activities
-eco-innovation supporting environment
Weighting determination -eco-innovation performance
Aggregation
Measure & analyze
Qualitative Research
Outcome: ASEI Report
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14. ASEI Assessment Framework Storyline
Eco-Innovation Capacity Eco-Innovation Activities
Includes indicators that Includes indicators that reflect
reflect country’s capacity & country’s current eco-innovation
potential to generate eco- activities (green technology,
innovation EMS, etc)
Eco-Innovation Supporting
Environment
Includes indicators that evaluate Eco-Innovation
government’s effort in creating Performance
supporting environment to
promote eco-innovation and Includes indicators that
enhance overall green measure a country’s resource
competitiveness of companies, efficiency, economic, social
industries and the economy and environmental
performance
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15. ASEI Development Methodology
2nd Stage: Index Development & Assessment (1)
Create assessment framework Due to lack of statistical data source related to eco-innovation at
national level, accountable generic data was determined to create
composite indicators
Select best available sources
for indicators Currently available eco-Innovation indexes focus on measuring eco-
innovation of advanced countries, mostly European countries using
Weighting determination sources from EUROSTATS and other European research institutes.
-Limited data is available to measure various aspects of eco-
innovation of Asian countries.
Aggregation
Expert's AHP Survey Process:
- Environment/sustainable management experts were selected and
Measure & analyze asked to participate in the AHP survey
- Based on the experts survey results, relative importance of each
indicators and its reliability were calculated.
Qualitative Research - Based on the calculated importance, 20 indicators were selected
and applied to the ASEI framework.
Included SMEs representative indicators
Outcome: ASEI Report
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16. ASEI Assessment Framework
Criteria Indicators
Country’s Economic Competitiveness
General Innovation Capacity
Eco-Innovation
Level of Awareness on Sustainability Management
Capacity
Value of Investment in Green Technology SMEs
Jobs in Green Technology Industry
Renewable Energy Utilization level
Green Patents
Eco-Innovation Level of Commercialized Green Technology SMEs
Activities Green Technology SMEs at Early Stage
Level of Environmental Management
Turnover of Environmentally Friendly MNEs
Investment Maturity of Green Technology Industry
Eco-Innovation Government’s R&D Expenditure in Green Industry
Supporting Environment Level of Environmental Laws
Country’s Commitment to International Environmental Agreement
Green Industry Market Size
Water Consumption Intensity
Eco-Innovation
CO2 Emission Intensity
Performance
Energy Sustainability Level
Level of Environmental Impact on Society
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17. ASEI Development Methodology
2nd Stage: Index Development & Assessment (1)
Create assessment framework
Select best available sources
for indicators
Weighting determination
Aggregation
Due to lack of statistical data source reliable qualitative research
Measure & analyze
was added to analyze the trends and issues on eco-innovation for
each country
Qualitative Research Research policies, regulations and programmes that are related to
eco-innovation
Outcome: ASEI Report Included business case studies representing various ways of
implementing eco-innovation at firm level
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18. ASEI 2012 Results
Eco-Innovation Eco-Innovation Eco-Innovation Eco-Innovation
Country
Capacity Activities Environment Outcome
Austria 56 31 68 39
Belgium 70 37 61 34
China 55 32 70 32
Denmark 88 65 58 60
France 75 48 67 56
Germany 75 41 63 50
India 60 27 59 17
Indonesia 45 19 49 15
Italy 53 43 55 40
Japan 65 31 57 48
Korea 61 38 60 28
Malaysia 54 18 56 25
Sweden 85 79 79 67
Thailand 49 17 46 18
United Kingdom 82 66 87 47
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19. ASEI 2012 Results: Regional Findings
 European and Asian countries are at different
stages of understanding and implementing eco-
Eco-Innovation
Capacity
innovation
100
80  The EU is the frontrunner of eco-innovation
60
leading the global eco-innovation market, initiatives,
40
trade and industry.
20
Eco-Innovation Eco-Innovation
Performance
0
Activities  In comparison to the EU countries, Asian countries
are just starting to get familiar with the term “eco-
innovation.”
Europe and Asia are in different maturity level
Eco-Innovation of eco-innovation.
Supporting
Environment  As late starter of eco-innovation, Asian countries
are behind in all four criteria of examined scope of
EU Average ASIA Average eco-innovation
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20. ASEI 2012 Results: Five Main Regional Findings (1)
1. Growing Eco-Innovation Capacity in Asia 2. Importance of bridging the gap between Eco-
innovation Capacity & Eco-innovation Activities
 Asian countries like Korea, India, China
demonstrate rapid growth in eco-innovation  Top runners of eco-innovation show smaller gap
capacity and growing awareness on green between eco-innovation capacity and eco-
growth innovation capacities (e.g. Sweden)
 Bridging the gap between eco-innovation
capacity and eco-innovation activities is a
100
challenge for both European and Asian countries
90
80
70  Governments need to play a central role through
60 government regulations and policies to transform
50 eco-innovation potential to actual activities that
40 can eventually improve the environmental
30
performance at national level.
20
10
0
Eco-Innovation Capacity Eco-Innovation Activities
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21. ASEI 2012 Results: Five Main Regional Findings (2)
3. Growing Support for Eco-Innovation from Asian governments
 Strong correlation between eco-innovation supporting environment and eco-innovation activities (e.g.
top runners of ASEI are United Kingdom, Sweden and Denmark)
 While the regional policy mix of European countries targets direct stimulation of eco-innovation (e.g. EcoAP)
Asian countries have different policies and regulations with varying focused areas and targets related to eco-
innovation set at national level
 Increasing support from the Asian
governments on renewable energy,
green technology and other environment
related areas
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22. ASEI 2012 Results: Five Main Regional Findings (3)
4. Europe puts effort on both Non-Technical and Technical Eco-innovation
 European countries demonstrate various types of non-technical eco-innovation via mostly changing its
operation process, marketing strategy, designs of products and production process
 Asian countries’ eco-innovation is more technical focused with green technology funding programmes
5. Different Stage in Eco-Innovation Performance
 Many European countries are achieving both environmental and economic outcomes through good eco-
innovation performance while Asian countries lag behind
6. Each Country has its own eco-innovation focus and strengths
 Due to different economic, social, political and cultural environment and levels each country demonstrates
eco-innovation activities on the basis of each country’s strength and opportunity
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23. ASEI 2012 Results: Country Findings
e.g. Sweden
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24. Conclusion
 Firm linkage between eco-innovation capacity, activities, environment and performance is
crucial for eco-innovation to contribute to green growth
 Integration of innovation and environment focused policies, national strategies, business
models, regulations, awareness, products, designs, services, technologies and practices is
beginning of any eco-innovation activities
 Some Asian countries like Korea are striving their way to put eco-innovation at the heart of
their green growth agenda following the frontrunners (European countries)
 Qualitative and quantitative analysis helps to analyze the signs of what types of eco-
innovation may emerge in the next ten years in which country and region
 Broader understanding of the concept eco-innovation provides wider space for various eco-
innovation activities to emerge in different sectors in a variety of novel ways
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25. Conclusion
Limitations and Challenges
 Better quantitative data and qualitative analysis on eco-innovation are needed for more accurate
measurement of eco-innovation
 Lack of availability of comparative data for eco-innovation puts the limitation on ASEI especially
for Asian countries
 ASEI 2012: 15 countries
 ASEI 2013: 24 countries
 ASEI 2014: 46 countries
ASEM
Member
countries4
Number of
6
Countries
 Expand number of countries to be assessed
24
 Improve assessment framework improving
15 the limitations of ASEI 2012
2012 2013 2014
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