7 Metrics to Measure the Sustainability of Your SME
Most companies know there is a call for sustainability nowadays. They try to do their best to follow the principles of running eco-friendly businesses, starting from the creation of a sustainable workplace and ending with the evaluation of supply chain sustainability.
The stakeholders increasingly require SMEs to green the processes of producing goods and delivering services. Here are 7 metrics to judge SME sustainability.
How to Measure Sustainability in SME?
At the moment there is no one “right” metric to evaluate SME sustainability. Basing on the Global Reporting Initiative, one of the most popular sustainability reporting frameworks, it is possible to outline the following areas of assessment:
1. Energy use
Energy consumption is one of the major components of sustainability. The business will save costs and improve overall financial performance by becoming more energy effective. Besides, it plays an important role in greenhouse gas emissions and other things that are harmful to the environment. Energy consumption can be measured with IoT sensors that monitor the company’s energy use continuously. Information on the amount of energy use and the carbon offsetting initiatives can give a clear picture of how much air pollution the SME produces.
2. Impact on climate
One of the main factors contributing to climate change is the burning of fossil fuels. They are applied while heating buildings, giving power for transport, and producing electric power for other needs. Businesses should shift to renewable sources of energy to reduce harmful emissions of CO2, hence avoid a negative impact on the environment.
3. Water consumption
Water is another crucial metric for measuring SME business sustainability, as it is used in most facilities every day. Monitoring the water leakage and quality is important not only for the good well-being of employees and consumers but for water conservation as well. It is possible to check the use and condition of water with the help of IoT sensors.
4. Pollution
This category identifies the efforts you take to diminish or avoid pollution. The metrics will check whether you recycle your waste, prefer reusable materials, or purchase recycled materials from other sources. The metrics will also determine your efforts to use alternative energy sources like wind, solar, etc. Ways to prevent and decrease pollution are among the key sustainability considerations.
5. Staff health and safety
Sustainability goes hand by hand with such term as corporate responsibility. A safe and healthy environment involves a wide range of things. This involves a quality indoor air and drinking water, the absence of harassment or fear of physical safety, the availability of paid leaves and good retirement plans, a flexible schedule, promotion of sport and healthy living. A good thing is to engage employees in corporate responsibility to increase the chance for overall success.
6. Supply chain
Each company should realize that it is a part of a large system and take steps for enhancing the sustainability of the entire supply chain. You should ask the manufacturers you deal with about the techniques and goods they use in their work. It is even better to request continuous sustainability reporting from them to continuously check all the information. If the manufacturers do not apply sustainability practices, all your effort may be in vain.
7. Management behavior
Adopting sustainable and ethical practices always begins with management. They should create a culture of sustainability and implement policies that support it. Moreover, there should be accusations related to waste disposal or any other issue that breaks the standards of sustainability.
Evaluating SME Sustainability
Sustainability provides a lot of benefits for businesses and the larger community. The business can receive gains such as:
· Increase of a brand value
· Improvement of employee engagement
· Increase in investor demand
The company will be able to enjoy all these gains only after providing proof of SME environmental sustainability. This is why it is necessary to know metrics for measuring the company’s impact on the environment.
The SustainOnline platform provides sustainability education online that will allow you to gain the necessary knowledge for taking full responsibility for all business processes and making your company eco-friendly. If you want to stay competitive, and profitable, then you should learn how to measure SME sustainability to identify weak points and work out the winning strategies for your business.
