ESG (Environmental, Social, and Governance) is about making a difference for your business and the world. It is about creating sustained outcomes that drive value and help growth, whilst benefitting the environment. It is a commitment to change and to create a brighter future for generations to come.
It is becoming increasingly important for supply chain managers and companies with intricate supply chains, to have an ESG policy and a way to measure it. Tracking specific ESG indicators is essential for assessing and enhancing a company’s performance as it highlights and focusses on sustainability and corporate responsibility.
Is it Important to Track Particular ESG Metrics?
ESG is about creating a practical plan that achieves real results. This should not be a short term plan but be embedded in the company policy and ethos. Businesses that want to lower carbon emissions, use sustainable packaging, and employ green building practices need to track particular ESG criteria. Companies aiming to integrate their supply chain operations with larger ESG goals must now consider ESG factors. Businesses can identify areas for improvement, set goals, and evaluate their performance against industry norms by monitoring and analyzing ESG metrics. They can then make decisions that positively affect their supplier chains’ governance, society, and environment.
For example some companies are committed to becoming carbon neutral by 2030. Measures implemented to cut carbon footprints may include energy efficiency improvements in its operations, the use of renewable energy sources, and investing in carbon offset projects. Another possible area to consider is people – improve working conditions, improve the way of working with suppliers, safety in the workplace and generally looking after all the staff.
Keeping Tabs on Your ESG Performance
Businesses need to create precise targets and metrics aligned with their ESG strategy to track ESG performance and create transparency. Carbon emissions, energy use, waste management, water use, labour practices, diversity and inclusion, and ethical sourcing are some possible ESG measures. Data gathering, analysis, and reporting are key steps in tracking ESG metrics. By investing in technology and software solutions, data collection and analysis may be streamlined while accurate and timely insights are provided for decision-making.
Business ESG Metrics for Supply Chain Complexity
Due to the involvement of many different stakeholders, various processes and geographic locations, businesses with complex supply chains have unique issues when measuring ESG KPIs. The storage and logistics sector is one of the industries that Bisham Consulting specializes in working with. They are in a position to serve as trustworthy advisers for companies attempting to include ESG issues into their supply chains thanks to their knowledge of logistics innovations, warehouse construction projects, and the constantly changing warehousing industry.
It can be challenging to navigate the complexities of tracking ESG metrics, especially for organizations without in-house expertise. Engaging experienced consultants can offer invaluable assistance. Consultants help organizations move more quickly towards ESG targets by providing a new viewpoint, sector insights, and tried-and-true approaches. They assist companies in implementing sustainable practices, identifying areas for improvement, and ensuring ESG criteria are being met.
Organizations that want to link their supply chains with sustainability objectives and corporate responsibility must track ESG metrics. Companies can influence positive change, enhance performance, and contribute to a more sustainable future by following particular ESG criteria. The logistics and supply chain expertise of Bisham Consulting and their emphasis on workable solutions make them an excellent ally in your quest for efficient ESG metric tracking. To find out how they can assist your business in achieving higher operational excellence and sustainability in its supply chains, contact Bisham Consulting today.
Having ESG objectives can make meaningful changes which lead to measurable value and make a difference to your business.