Businesses are under pressure to demonstrate their commitment to sustainability, due to an increasing awareness of climate disasters and rising demand for responsible business practices from investors and consumers. A 2021 study by Simon-Kucher and Partners found that 60% of global consumers consider sustainability when making a purchase, so no doubt that percentage has climbed higher in the years since.
Environmental, Social, and Governance (ESG) initiatives have become central to this effort, providing the framework for businesses to make their operations more sustainable. In this article, we’ll explore four key performance indicators (KPIs) businesses can use to measure their environmental impact and enhance their sustainability efforts.
1. Carbon footprint
A business’s carbon footprint is the total amount of greenhouse gases it emits into the atmosphere. Greenhouse gas emissions are the main cause of climate change, so measuring and reducing carbon footprint is the most fundamental way to become more sustainable.
Businesses can track their carbon footprint by partnering with specialist environmental consultants to calculate the total amount of greenhouse gases emitted directly and indirectly across their operations. They should then set targets to reduce emissions, before implementing measures to achieve them.
2. Water usage
Conserving water supplies is a pressing global challenge. According to the UN, 1.8 billion people will face absolute water scarcity by 2025. Governments, businesses and individuals all need to manage their water usage responsibly to avoid exacerbating the issue.
Businesses can play their part by carefully monitoring water usage to identify inefficiencies across their operations. Armed with this knowledge, they can then take action to reduce their water footprint and contribute to water security. This could include investing in water-saving technologies, recycling and reusing water, and even engaging with local communities to promote responsible water usage.
3. Energy consumption
Reducing energy consumption not only minimises environmental impact but also lowers costs, so all businesses should be extra motivated to address this area. Energy consumption can be divided by the different sources, including electricity, natural gas and fuel. Analysing by source lets businesses understand which energy sources contribute the most to consumption and prioritise improvements accordingly.
4. Waste generation
Most waste is buried in landfill sites, where it generates greenhouse gases that contribute to global warming. So, managing waste effectively is essential for businesses to minimise their environmental impact. Conducting a waste audit is the first step to getting things under control. The insights gleaned from this will make it possible to implement strategies to reduce, reuse, and recycle materials.
By measuring and addressing their environmental impact through these four KPIs, businesses can not only drive positive change towards a more sustainable future, but also improve their operational efficiencies and enhance their brand reputation.
