Five data metrics every eco-friendly business tracks
The journey to sustainability in business is intricately woven with data. Navigating this expansive topic requires anchoring metrics or Key Performance Indicators (KPIs). These metrics, especially in the age of digitisation, give firms a tangible way to assess their eco-footprint and strategise improvement. Delving deeper, we highlight five KPIs that are the linchpins of this endeavour.
Carbon Footprint: Beyond the Hype Businesses, now more than ever, are keenly aware of their carbon emissions. According to the Carbon Trust, a company’s carbon footprint is a representation of the amount of carbon dioxide and other greenhouse gases for which it is responsible. By examining Scopes 1, 2, and 3 of emissions, businesses get a panoramic view of their environmental impact, encompassing direct emissions, energy consumption, and their value chain.
Energy Consumption: Efficiency is the Key The International Energy Agency (IEA) emphasises that businesses can drive the world towards a more sustainable energy future. Monitoring energy use via tools like the Industrial Internet of Things (IIoT) allows firms to not only reduce costs but also minimize the strain on non-renewable resources.
Supply Chain Miles: Beyond Production The World Economic Forum underscores that the transportation sector is a significant contributor to global emissions. Recognising this, businesses are keen on green logistics, with some pioneering alternative transport methods. Holistic views of supply chain miles, aided by transparent data, can lead to significant emission reductions.
Waste Reduction and Recycling: Closing the Loop The Ellen MacArthur Foundation, a forerunner in promoting circular economies, advocates for businesses to focus on creating a loop where resources are used, reused, and recycled. This minimises waste and optimises resource utilisation, resonating with consumer demands for sustainable products.
Social Impact: People at the Core The Global Reporting Initiative (GRI) promotes the importance of Environmental, Social, and Governance (ESG) reports. These reports shed light on how firms impact their communities, including supplier treatment. Such transparent reporting can aid companies in fostering goodwill and ethical business practices.
To sum up, these five KPIs, deeply rooted in data, are invaluable guideposts for any business treading the sustainability path. They not only gauge performance but also illuminate the journey ahead.
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