Why Measure Environmental Performance: 8 Steps to a Greener Supply Chain
April 27, 2008 by LAUREN KERWAWYCZ | Filed under: What Should Be Measured and Why? [1,3]
As April Terreri describes in her article, Eight Steps to a Green Supply Chain, it is quite evident that companies are carefully being instructed to make improvements throughout their business processes. The author points out that no universally accepted standards exist to calcualte the carbon footprint of a company. This article exists to be a guide for companies to evaluate their supply chain and take initiatives to make their business practices more sustainable. As this article stresses the number one reason why companies want to measure the sustainability is to increase their bottom line.
Here are the eight steps to a greener supply chain: 1. business model, 2. transportation, 3. LEED-certified buildings and energy-reducing initiatives,. 4. packaging reduction, 5. education and training, 6. carbon credits, 7. waste reduction, and 8. recycling
What I find interesting is that Terreri does not say that being at either end of the spectrum in terms of progress of a sustainable supply chain is not a “good or bad” thing but depends on the business dynamics. This emphasizes the need for an industry scale as well as an absolute scale to comparatively gauge organizations. Some standards that are mentioned include the EPA’s Energy Star compliance, LEED certified buildings, and the US Department of Engery is referenced as a regulator. This article describes what organizations should measure but not necessarily how to measure them. Ideally these environmental performance indicators would be measured using globally recognized systems.