How do businesses measure sustainability?
Sustainability is a rising focus for businesses, as we look to preserve the health of our planet and live more eco-friendly lifestyles as a society. Both startups and established companies, regardless of their industry, are starting to recognize the importance of tracking sustainability metrics. This is not only to protect the environment and contribute to social causes, but also because it directly impacts their long-term profitability and brand perception.
Measuring your sustainability as a business involves assessing a wide range of environmental, social, and financial indicators. Here, we explore these key metrics and how you can measure them effectively.
Energy consumption and renewable energy use
Measuring your total energy consumed, including the proportion derived from renewable sources such as solar, wind, or geothermal, demonstrates a focus on renewable energy and highlights your company’s commitment to lowering its carbon footprint. This often also reduces your operational costs in the process, so it’s a win-win.
To do so, rely on your utility bills, energy audits, and smart meters. Big data tools can help you to analyze energy patterns across your facilities and provide valuable insights into how you can optimize efficiency with a lower carbon footprint.
Greenhouse gas (GHG) emissions
It’s also important to measure your reduction targets for CO₂ and other greenhouse gases, as well as any progress in meeting these goals. GHG reduction directly combats climate change and aligns businesses with international commitments set by both local and global governments, helping you to comply with ESG standards and set yourself ahead of the competition in your industry.
You can use tools such as carbon tracking software and IoT sensors to calculate emissions from company activities, including transportation and manufacturing. Again, tapping into the power of big data can then assist you in visualizing your emissions data and identifying any opportunities for reductions.
Water usage and efficiency measures
Water scarcity is a strong focus of many sustainability efforts, so it’s only responsible to track your total water consumption and the success of any conservation initiatives as a business. Being efficient with your water usage also reduces running costs and ensures shared resources are available for the communities and ecosystems that surround your facilities.
Installing technologies like smart meters and water tracking systems allows you to see your usage data on a granular level, but you could also implement AI-driven technology such as predictive analytics to anticipate potential water-saving opportunities.
Waste generation and recycling rates
Keeping a close eye on the total waste produced by your business, as well as your recycling and composting percentages and progress towards zero-waste goals, will enable you to both minimise waste and boost resource efficiency. This in turn reduces landfill impact and often saves money, too.
Installing sensors within your waste management systems can allow you to monitor volumes, but the most dedicated enterprises will also analyze their disposal routes and recycling efficiency even further by knowing where it goes once it has left their facilities.
Supply chain sustainability and ethical sourcing
No matter how sustainably you operate, ensuring that your materials are ethically sourced and in adherence to relevant sustainable practices such as fair trade certifications is essential. Having a sustainable supply chain increases your transparency and reduces reputational risk – it’s a clear demonstration of loyalty to your eco efforts that will be highly respected by your customers.
Making a difference
If sustainability is important to you and your business, tracking your energy use, emissions, water usage, waste and supply chain not only protects your bottom line but also positions your company as a responsible trailblazer in the marketplace. After all, measuring sustainability isn't just good for the planet, it’s critical for long-term success.