Supply Chain

Top 10 Performance Indicators for Sustainable Companies

April 4, 2012

My initial intent here was to do some research and identify just a few top performance indicators that signify how "green" an operation is - four or five at the most.

With some previous experience in supply chain sustainability, I thought I could easily create this short list. What I didn't realize was that my research would lead to a couple of websites where everything environmental would be located and performance indicators would be abundant.

I found many, many resources that have lots of detailed information and a wide range of performance indicators.

One of the key points I learned is that measuring environmental performance requires a look at all different areas of an organization - materials, energy, water, emissions, effluents and waste, products and services and many other topics.

So I decided to identify a Top 10 list of environmental performance indicators.

This was a long way from where my original vision started, but I hope it provides you with some metric areas to think about when reviewing sustainability in your company.

My top 10 sustainability indicators are:

1.Percentage of materials used that are recycled input materials

2.Direct energy consumption by primary energy sources per unit of output

3.Energy saved due to conservation and efficiency improvements

4.Percentage of water recycled and reused

5.Total direct and indirect greenhouse gas emissions by weight

6.Emissions of ozone-depleting substances by weight

7.Nitric oxide (NO), sulfuric oxide (SO), and other significant air emissions by type and weight

8.Total water discharged by quality and destination

9.Total weight of waste by type and disposal method

10.Percentage of products sold and their packaging materials that are reclaimed by category

If your organization can honestly say that you are measuring performance in each of the areas identified in the Top 10, then you are well ahead of the pack.

I'll also bet you have a thing or two that you could add to this list. If you do, please leave a comment, and we can make this a running list on how to be greener in your operations.

Jim
Tompkins Inc.

About the Author

Jim Tompkins | CEO

Dr. James A. Tompkins is an international authority on leadership, logistics, material handling, outsourcing, and supply chain best practices. As the founder and CEO of Tompkins International, he provides leadership for Tompkins globally.

His 30-plus years as CEO of a consulting / integration firm and his focus on helping companies achieve profitable growth give him an insider’s view into what makes great companies even better. Listen to an interview of Jim Tompkins on the Business Leader Radio show.

As a high-level business advisor, his unique perspective prepares corporations and executives for the future.

To share his knowledge and provide up-to-date information on supply chain and business trends, he developed the GoGoGo! Blogand Global Supply Chain Podcast.

He has written or contributed to more than 30 books and eBooks, including Caught Between the Tiger and the Dragon, Bold Leadership, Logistics and Manufacturing Outsourcing, The Supply Chain Handbook, andNo Boundaries. Jim has been quoted in hundreds of business and industry magazines such as The Journal of Commerce, Supply & Demand Chain Executive, and FORTUNE, and he has spoken at more than 4,000 international engagements.

Jim has served as President of the Institute of Industrial Engineers, the Materials Management Society, and the College-Industry Council on Material Handling Education, and Purdue has named him a Distinguished Engineering Alum. He has also received more than 50 awards for his service to his profession.