Sustainability performance and indicators comprises threepillars, Environment, Economic and Society. Here, we have established a linkage between the two factors of sustainability, a. economical factor and b. environmental factor through material conservation approach. Though, the Material conservation will have direct impact on the economic performance but it is also linked to the environmental performance, is lesser studied and documented. Most of the organizations link material conservation performance to economic gains only without realizing its direct impact on environmental performance as well. Manufacturing organizations practice the approach of optimizing and, reducing the input resource to product, without impacting the quality of output, i.e. the product itself, for example, the amount of steel going to automotive product, the amount of consumable oils, paints, rubber and plastic parts, etc. In this paper, a tool using input and output balance is used to demonstrate how the manufacturing organizations can evaluate their material conservation performance which has direct linkage to both economic and environmental performance. ISO 14001:2004, Environment Management System standard defines prevention of pollution as use of processes, practices, techniques, materials, products, services or energy to avoid, reduce or control the creation, emission or discharge of any type of pollutant or waste, in order to reduce adverse environmental impacts. Prevention of pollution can include source reduction or elimination, process, product or service changes, efficient use of resources, material and energy substitution, reuse, recovery, recycling, reclamation and treatment.