The five most important sustainability KPIs

Arguably the most important key figure is the carbon footprint of a company. This is because it analyses a wide range of data from both the company in question and its suppliers and customers. By measuring emission areas 1, 2 and 3, organisations can assess how the market presence of their products or services affects climate change. For more on the carbon footprint, see our wiki series on the topic: Corporate and Product Carbon Footprint, How do I calculate the carbon footprint?, Overview Carbon Footprint Software.

Reducing the energy intensity of processes is one way to pave the way towards renewable energies. This is because less energy-intensive processes consume less energy overall, which can then be covered by renewable energy to a greater extent. Therefore, companies should analyse how much energy they consume and identify where they can consume less. This analysis and the implementation of measures to reduce energy consumption lead to cost savings for the company and fewer emissions from the energy generation plants. Digital tools and applications such as the Internet of Things (IoT) can also provide valuable information on energy consumption in production.

Although production is often considered the primary source of emissions, the miles traveled in the supply chain should also be considered. These may offer even further development opportunities to reduce greenhouse gas emissions and energy. To gain full insight, companies must have access to data on the total mileage of their supply chain and the impact of their transportation methods. Once this data is available, it may be possible, for example, to switch to alternatively powered vehicles and transport solutions, or to find more efficient distribution routes using applications and in consultation with suppliers.

In sustainability reporting, it is not only the production of the product that is relevant, but also its use and recyclability. In a circular economy, for example, products are recycled and thus returned to the production cycle. As end consumers become more conscious of recyclability and the sourcing of product materials, companies should monitor the life cycle of their products. This enables them to keep pace with market trends on the one hand, and on the other hand to ensure that not only the production but also the further use of the products is sustainable.

Similar to product recycling, waste recycling is about reuse and, moreover, also about saving waste. This is not only usually more cost-effective for companies, but also more environmentally friendly, as fewer materials end up in waste. Therefore, the recycling and waste reduction rate is considered an important metric in sustainability reporting. Once the data has been collected, it can be evaluated how, for example, waste can be further reduced by using the material more efficiently. In addition, it can be clarified whether waste materials are used in other processes (possibly also in other companies) and can be returned to the production cycle through reuse or sale.