How do you benchmark and compare your environmental costing results with your competitors or peers?

1 Choose relevant indicators

The first step is to choose the indicators that best measure your environmental performance and costs. These can include energy consumption, greenhouse gas emissions, waste generation, water use, resource efficiency, and environmental compliance. You should also consider the industry standards, regulations, and customer expectations that affect your business. Choose indicators that are relevant, measurable, comparable, and consistent.

2 Collect and analyze data

The next step is to collect and analyze the data for your chosen indicators. You can use various sources, such as invoices, meters, reports, audits, surveys, and software tools. You should also collect data from your competitors or peers, if possible. You can use public sources, such as websites, reports, certifications, or rankings. You can also use private sources, such as benchmarking clubs, networks, or consultants. You should compare the data using the same units, time periods, and methods.

3 Identify gaps and opportunities

The third step is to identify the gaps and opportunities between your environmental costing results and those of your competitors or peers. You should look for the areas where you are performing well or poorly, and the reasons behind them. You should also look for the best practices, innovations, and trends that you can learn from or adopt. You should prioritize the opportunities that have the most potential to improve your environmental and financial performance.

4 Set goals and action plans

The fourth step is to set goals and action plans based on your benchmarking and comparison results. You should set SMART goals, which are specific, measurable, achievable, relevant, and time-bound. You should also develop action plans that outline the steps, resources, responsibilities, and timelines to achieve your goals. You should communicate your goals and action plans to your stakeholders, such as employees, customers, suppliers, and investors.

5 Monitor and report progress

The fifth step is to monitor and report your progress towards your goals and action plans. You should track and measure your environmental costing results regularly, using the same indicators and data sources. You should also report your progress to your stakeholders, using clear and transparent methods, such as dashboards, scorecards, or reports. You should highlight your achievements, challenges, and lessons learned.

6 Review and update

The sixth step is to review and update your benchmarking and comparison process periodically. You should evaluate your environmental costing results against your goals and action plans, and against your competitors or peers. You should also review your indicators, data sources, methods, and assumptions, and make adjustments as needed. You should also seek feedback from your stakeholders, and incorporate their suggestions and expectations.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?