Using Impactful Metrics to Reach Net Zero
On the journey to net zero, which metrics should you measure to ensure that your business is making a genuine difference?
At the recent Salesforce World Tour event in London, Hass Jishi, Head of Slalom’s Net Zero Cloud UKI spoke about the journey organisations can take to net zero. He shared that most companies start with compliance, with carbon accounting falling into three scopes:
- Carbon directly created by burning, such as gas in a car or a furnace.
- Someone burning carbon on the company’s behalf, such as an electricity supplier.
- Indirect emissions that result from the company doing business, such as employee commuting emissions.
This is where complications arise, with confusion overshadowing the company’s actual responsibilities. Jishi says this can also lead some businesses to give up, with paralysis setting in as they realise how far their impact reaches. As a result, “greenwashing” has become more common and many businesses are forced to deal with the problem down the line.
Utilising digital twin technology
While it takes effort to successfully map emissions on a large scale, doing this is still within reach. The real leaders are those who aim to be accountable for their entire supply chain.
‘Digital twin’ technology brings together often-siloed data onto a single platform enabling users to visualise data in real time with easy-to-use dashboards. Creating a ‘digital twin’ of the supply chain and the company’s operations enables firms to clearly see their entire workflows. Team members and stakeholders can then look at individual components to see which they are directly responsible for.
While individual metrics can vary by industry, every business can take this approach to find exactly what matters most to them — and where these similarities are.
Jishi advises abstracting the organisation into blocks, such as different departments, teams, and assets. This empowers stakeholders to find common use cases and see patterns, enabling decisions around impact and change to be made on the pathway to net zero.
Big changes happen when you start small
The key is to start small, such as mapping owned products or modelling one factory, store, or department. For manufacturers, the initial focus should probably be on factories, while for car companies it might be on product life cycle analysis.
Once you’ve found your focus, zero in on specifics to uncover key takeaways. For example, track how many people from the sales team are engaging in carbon-intensive activities (such as driving long distances) and explore alternatives. Then look for similarities across other departments. Finding repeatable use cases will uncover metrics that make sense for your organisation.
Common mistakes to avoid
Creating a digital twin of your organisation will help create a more streamlined process, allowing for data to be collected automatically. This enables quicker decision making, allowing progress to be tracked confidently.
“The biggest mistake companies make is get overwhelmed by the volume of things to do and fail to do anything,” Jishi says. Another misstep is that too many forecast their carbon footprint without specifying where the emissions may be coming from, making their numbers meaningless. Many also fail to consider the risk of inaction and the negative impact that doing nothing will have.
Every business needs to consider if it will still exist in the future if it continues to operate in the way it does today. With this in mind, climate implications should be a part of every decision that’s made.
The path forward
The start of a net zero journey can feel overwhelming, but it doesn’t need to be. Slalom can help you create a culture of innovation and action, using change management tactics and easy reporting to provide the fastest possible path to net zero.
Slalom is a global consulting firm that helps people and organisations dream bigger, move faster, and build better tomorrows for all. Learn more and reach out today.
