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Last updated on 2024年12月16日

What are the best KPIs to measure the environmental impact of your business?

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If you want to reduce the environmental impact of your business, you need to track and improve your performance on relevant indicators. But how do you choose the best KPIs to measure your sustainability efforts? And how do you set SMART goals for them? In this article, we will explain what KPIs are, why they are important for environmental management, and how to select and use them effectively.

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Jassim Alampara

Procurement Consultant @ Alambaar | Process & Cost Optimization | Procurement Audit & Training | Cross Industry…
Rajdeep D.

1 What are KPIs?

KPIs are key performance indicators, which are measurable values that show how well you are achieving your objectives. KPIs can help you monitor and evaluate your progress, identify strengths and weaknesses, and communicate your results to stakeholders. KPIs can be quantitative or qualitative, and they can be applied to different levels and aspects of your business.

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Jassim Alampara

Procurement Consultant @ Alambaar | Process & Cost Optimization | Procurement Audit & Training | Cross Industry Benchmarking | Procurement Transformation Specialist |
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I believe the best KPIs to measure environmental impact include carbon footprint reduction, waste reduction and recycling rates and energy consumption per unit of output. These metrics directly reflect sustainability efforts and help businesses align with environmental goals. Tracking these KPIs enables continuous improvement in operational efficiency and sustainability practices.

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Rajdeep D.
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When it comes to measuring the environmental impact of your business, some key performance indicators (KPIs) can be highly effective. These may include carbon footprint measurements, energy consumption and efficiency metrics, waste generation and recycling rates, water usage and conservation figures, and sustainable sourcing percentages. Another crucial KPI could be the implementation and progress of green initiatives and certifications like LEED or B Corp status. These metrics not only demonstrate your commitment to sustainability but also provide actionable insights for continual improvement.

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2 Why are KPIs important for environmental impact?

KPIs are important for environmental impact because they help you align your business strategy with your sustainability goals. By measuring your environmental performance, you can identify where you can reduce your emissions, waste, energy use, water consumption, and other impacts. You can also benchmark your performance against industry standards, regulations, or best practices, and demonstrate your commitment to social responsibility and environmental stewardship.

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3 How to select KPIs for environmental impact?

To select KPIs for environmental impact, you need to consider your business context, your sustainability vision, and your stakeholders' expectations. You also need to follow some criteria to ensure that your KPIs are relevant, specific, measurable, achievable, and time-bound. These are the SMART criteria, which can help you define clear and realistic KPIs that suit your needs and resources.

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Vishal Kalia

Co-Founder & CEO @ Strategage.com
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Consider your business context and sustainability vision: Take into account the specific environmental aspects that are relevant to your business and align with your sustainability goals. For Example: Consider Emissions and Energy Use as KPI Measure and track greenhouse gas emissions (GHG) from your operations, including Scope 1 (direct emissions), Scope 2 (indirect emissions from purchased energy), and Scope 3 (indirect emissions from your value chain) For example, you can track and aim to reduce your carbon footprint by measuring and setting targets for GHG emissions.

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4 How to use KPIs for environmental impact?

To use KPIs for environmental impact, you need to collect and analyze data, report and communicate your results, and review and improve your performance. You can use various tools and methods to gather and process data, such as surveys, audits, sensors, meters, or software. You can also use dashboards, graphs, charts, or reports to visualize and share your data with your team, customers, investors, or regulators. Finally, you can use your data to evaluate your performance, identify gaps and opportunities, and adjust your actions and goals accordingly.

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5 What are some examples of KPIs for environmental impact?

When it comes to environmental impact, there are various KPIs to consider depending on your industry, scope, and objectives. These could include carbon footprint – the amount of greenhouse gas emissions generated by your activities, products, or services – as well as waste generation, energy efficiency, water efficiency, and environmental compliance. The latter refers to the degree to which you meet or exceed the legal or voluntary standards and requirements for environmental protection.

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6 How to set SMART goals for environmental KPIs?

When setting SMART goals for environmental KPIs, you should ensure that they are specific, measurable, achievable, relevant, and time-bound. For instance, a SMART goal for reducing your carbon footprint could be to reduce emissions by 20% by 2025 compared to 2020 levels through energy-saving measures and switching to renewable sources. This goal is specific (defining what you want to achieve and how), measurable (quantifying desired outcome and tracking progress), achievable (ensuring it is realistic and attainable with resources and capabilities), relevant (aligning with business strategy and sustainability vision), and time-bound (setting a deadline or timeframe).

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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?

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Ali Esmaeilbeygi

IMS Coordinator with expertise in Quality Management and ISO Standards
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There are certain areas of ambiguity in this article. Within our management system, we have established distinct processes. Each process is aligned with organizational context and stakeholder requirements, and corresponding goals have been defined. It's crucial that these goals remain in line with stakeholder needs. To effectively track the performance of these processes, we utilize Key Performance Indicators (KPIs). KPIs serve as tools for monitoring our progress toward meeting these specific goals. Various types of KPIs exist, including leading and lagging indicators

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What are the best KPIs to measure the environmental impact of your business?

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1 What are KPIs?

2 Why are KPIs important for environmental impact?

3 How to select KPIs for environmental impact?

4 How to use KPIs for environmental impact?

5 What are some examples of KPIs for environmental impact?

6 How to set SMART goals for environmental KPIs?

7 Here’s what else to consider

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