The Eco Social Cost Unit (ESCU) is introduced to transfer the hidden costs through the supply chain and as a sustainability indicator.
One of the major problems in controlling sustainability is controlling the often extremely complex supply chain.
The Oiconomy solution is the Eco Social Cost Unit or ESCU.
The Oiconomy standard defines the real price of a product as the sum of the normal market price and the hidden costs of preventing any social or environmental damage in the complete lifecycle of a product, from cradle to grave. The hidden costs are determined in Eco Social Cost Units and expressed in a monetary unit. The ESCU’s are determined an all stages of the supply chain and, being a hypothetical price, transferred trough the supply chain in a similar way as common costs. Companies can use a shadow copy of their normal bookkeeping for these ESCU’s.