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The Key Sustainability Metrics Your Business Should Track
Business owners and managers are no strangers to measuring and tracking key performance indicators (KPIs). These give an insight into what’s not working and what’s steering the operations in the right direction.
You can apply this same logic to your sustainability initiatives and environmental, social, and governance (ESG) goals more broadly. Keeping up with sustainability metrics can help you optimize your strategy. More than that, they demonstrate your environmental commitment to customers and stakeholders—something that’s more important than ever.
Wondering how to measure sustainability and which KPIs to focus on? This article
Why Measure Sustainability Metrics?
Before we get into the specific KPIs to monitor, let’s dig into the
Measuring sustainability metrics gives you cold, hard data about your progress. You can see in black and white which strategies were effective and use this insight to make an informed decision about your next steps
In some industries, regulatory bodies are introducing sustainability-related rules. Tracking KPIs gives you quick access to the facts and figures needed to lock in compliance and avoid penalty.
Sustainability KPIs aren't just for internal use. You can publish these metrics as a way to show you value transparency and are willing to hold your organization accountable.
Measuring business sustainability gives you a competitive edge. Even amid cost-ofliving pressures, consumers will pay 9.7% more for sustainability
How To Measure Sustainability
How exactly you will measure the success of your sustainability initiatives depends on your industry and the nature of your business. However, there are some environmental-related KPIs that apply to every organization chasing a more sustainable future. Here are four of these metrics.
Carbon Footprint
Reducing carbon emissions plays an important role in the fight against climate change. It’s a priority for individuals, communities, and businesses across the globe. Carbon footprint is a measure of the total amount of greenhouse gases produced and emitted by an organization. This figure can shine a light on areas of your operations that are particularly polluting. From there, you can take action to minimize your carbon footprint where it will have the most impact. You might set specific, time-bound targets like reducing your footprint by 30% in the next five years
Supply Chain Sustainability
If your organization is like many others, your supply chain accounts for over 90 percent of your impact on the environment. You can uncover opportunities to reduce its effect by tracking metrics like:
You might also audit your suppliers. Do their values align with yours? Do they follow sustainability and ESG best practices?
If not, you might partner with an alternative provider that prioritizes green supply chain practices.
Energy Consumption
Whatever the industry, companies are energy-intensive. They use huge amounts of non-renewable energy to produce and deliver goods, market their services, processtransactions, and so on.
Your total energy usage. You can find this data using your utility bills or an energy management system.
Your energy intensity. This is the amount of energy consumed per unit of activity. Let’s say you manufacture. You might measure the amount of energy required to produce solar panels using different materials. You can then compare, contrast, and select the option that consumes the least energy.
Your renewable energy usage. This captures the percentage of your total energy usage derived from renewable sources like solar and wind energy. The higher the percentage, the lower your reliance on non-renewables like coal.
Waste Generation
Companies also produce a lot of waste. It is imperative to your sustainability goals that you create a responsible and meticulous waste management program. Of course, what this looks like in practice depends on the type and volume of waste generated.
So, you’ll want to measure the total amount of waste produced by conducting an organization-wide audit. It can be helpful to categorize waste products into paper, organics, metals, hazardous waste, and other types.
Another useful metric to follow is your waste diversion rate. This is a measure of the percentage of waste diverted away from landfills. You might adopt alternative waste management methods like composting or recycling to increase your waste diversion rate
Finally, if relevant, ensure compliance with all environmental and safety regulations surrounding the proper handling and disposal of hazardous waste. Some by-products can harm the environment and devastate ecosystems. You will need to separate this type of waste from other waste products to avoid contamination and make sure it’s sent to the appropriate disposal facility
Making Business Sustainability Your Priority
Every business has a responsibility to protect our environment. Sustainability initiatives aren’t just another box-ticking expense. They make smart business sense. They help you position yourself more competitively in a market that celebrates transparency and environmental preservation. If you’d like guidance on your journey, reach out today
