What are the most effective cost drivers for improving environmental sustainability in your business?

Os principais impulsionadores de custo eficazes s?o eficiência energética, gest?o de resíduos e otimiza??o da cadeia de suprimentos. Investimentos em tecnologia de eficiência energética podem cortar custos operacionais e a pegada de carbono. Práticas de gest?o de resíduos, como reciclagem, n?o só minimizam o impacto ambiental, mas também podem reduzir despesas e gerar receita. Ajustar a cadeia de suprimentos para incluir fornecedores locais e sustentáveis pode diminuir custos de transporte e fomentar economias circulares. Embora o custo inicial possa ser considerável, os retornos financeiros e ambientais a longo prazo geralmente superam esses investimentos, fortalecendo a sustentabilidade e a resiliência do negócio.

. Material selection . Standards compliance . Products having materials which are recyclable . Energy efficient manufacturing process . Sustainable packing material . Environment friendly chemicals . Life cycle assessment

Starting with clear vision which can be translated into strategic and operational plans and can be followed and measured through appropriate KPI, can reach financial objective of business as whole by: 1) SWOT analysis and determine the weakness and pain points and how overcome the waste and spoilage items which have impact on eco system. 2) Determine the main cost and value drivers in alignment of business vission which need to keep continous improved. 3) Keep update performance evaluation and analysis the gap and reasons behind and take corrective actions.

Setting sustainability goals: 1. Vision and Mission: Align sustainability goals with your organization's vision and mission. 2. Stakeholder Expectations: Consider the expectations of customers, investors, and regulators. 3. Value Chain Assessment: Evaluate the environmental impact of your entire value chain. 4. Specific and Realistic Goals: Set SMART (Specific, Measurable, Achievable, Relevant, Time-bound) goals. 5. Monitoring and Continuous Improvement: Monitor your progress and make adjustments as needed. Good luck on your sustainability journey! ??

Los objetivos particulares de sostenibilidad deben venir alineados con los objetivos de toda la organización. Incluso en algunas empresas que cotizan en bolsa, es necesario presentar un informe anual que muestre los resultados sobre los objetivos planteados. En organizaciones con procesos de transformación, suele plantearse la sostenibilidad como objetivo prioritario.

In my experience, sustainability goals alone have not been sufficient to engage decision makers and drive different, more environmentally efficient behaviours through an organisation. Reporting on scope 1, 2 and 3 emissions, for example, has only really caught senior leader attention when it’s been accompanied with a view of the financial impact of reducing emissions. Although there’s an increasing body of evidence demonstrating a correlation between strong ESG performance and improved return on equity, developing a clear methodology to help explain quantitatively how the bottom line will be positively impacted by ESG initiatives remains crucial to engage stakeholders.

Comprendre la relation entre les co?ts et l'impact environnemental est essentiel pour une gestion efficace de la durabilité. En analysant le comportement des co?ts et les facteurs qui les influent, une organisation peut identifier des opportunités pour réduire les co?ts tout en améliorant son efficacité environnementale.

It is necessary to understand among the costs, which are directly related to ESG for short, medium and long term action, in the case of more robust projects. For example, the use of recyclable materials will generate short-term cost reduction and increase performance in the sustainability chain.

En ocasiones comenzar el cambio de materiales o empaques genera un costo adicional en el corto plazo. En ese sentido es necesario identificar otros rubros donde se generen disminuciones para neutralizar el efecto incremental. En el mediano plazo, esos increméntales serán compensados por la adopción de prácticas sostenibles

In my current workplace, we are building a system that calculates carbon usage per unit of product. I assume you are familiar with the concept of PCF (Product Carbon Footprint). The calculation follows the rule of cost allocation almost exactly. In this way, I expect that the cost-ESG approach may be connected to each other, and it could be transformed into a backbone for calculating ESG cost (if I may name it in this way).

Para aumentar a sustentabilidade ambiental, implemente estratégias de gest?o de custos como custeio variável, baseado em atividades, alvo e Kaizen. Na minha experiência essas práticas melhoram a eficiência financeira, reduzem desperdícios e promovem a inova??o, alinhando as opera??es com práticas sustentáveis.

Os principais benefícios ao realizar um plano de redu??o de custos s?o: * Aumento da competitividade da sua empresa; * Mais planejamento para as tomadas de decis?o; * Maior potencial para aumentar os lucros da empresa; * Produtos e/ou servi?os entregues com mais qualidade; * Saúde financeira da organiza??o protegida.

Back to the basics: Start with small goals, following the budget and forecasting the chosen costs so that it is possible to monitor the impact within the chain. After getting the basics done well, we move on to other methodologies.

- Use variable costing to allocate only variable costs to products or services, while treating fixed costs as period costs. - Use activity-based costing to allocate overhead costs to products or services based on activities consumed, rather than direct labor hours. - Use target costing to set the price of products or services based on market demand and desired profit margin, then work backward to determine the maximum allowable cost. - Use Kaizen costing to continuously monitor and improve costs and processes by involving all levels of your organization in finding and implementing small and incremental changes.

Methods like Energy efficiency and resource optimisation, Lifecycle cost analysis, supplier collaboration, lean waste management are often adopted in order to comply and maintain ESG norms

Clear and measurable KPIs should be defined and a system of regular data collection, reporting and analysis must be established for monitoring ESG costs. Benchmarking, Root cause analysis and continous improvement practices should be adopted to keep ESG requirements at bay

"In addition to the common ESG reporting, internally defined KPIs can also serve as measurement indicators. For example, the purchase or sale of CO2 certificates, which reflects the ecological balance of the respective production. In addition, novel aspects such as supporting reforestation can be considered not as costs but as an investment, including SROI (Social Return on Investment)."

- Compare your actual costs and environmental performance with your budgeted or planned costs and goals. - Use relevant and reliable indicators, such as carbon footprint, energy consumption, waste generation, or recycling rate, to measure your progress and impact. - Use feedback and data analysis to identify the strengths and weaknesses of your cost drivers and techniques, and to make adjustments and improvements as needed.

Para monitorar e avaliar os resultados da empresa em sustentabilidade ambiental, é importante: Definir metas e objetivos claros: O que a empresa quer alcan?ar em termos de sustentabilidade ambiental? Selecionar os indicadores mais adequados para monitorar o progresso em dire??o aos objetivos: Quais indicadores fornecer?o as informa??es mais relevantes e úteis? Coletar dados de forma consistente e confiável: Como os dados ser?o coletados e armazenados? Analisar os dados regularmente e identificar áreas que precisam de melhorias: O que os dados est?o dizendo sobre o desempenho ambiental da empresa? Comunicar os resultados aos stakeholders: Como os stakeholders ser?o informados sobre o progresso da empresa em sustentabilidade ambiental?

An example of implementing cost reduction techniques within the realm of ESG is through the adoption of renewable energy solutions like wind, hydro and solar energy. Plenty of organisations are increasingly turning to renewable energy sources to meet their energy needs while reducing greenhouse gas emissions and environmental impact, thereby generating sufficient carbon credits