According to our latest market research, only 26% of Nordic companies have effectively implemented the metrics and tools to manage their sustainability initiatives. This highlights a significant gap that, if addressed, could improve sustainability practices, and contribute to a business's bottom line. So, why are companies struggling with sustainability KPIs, and how can we work towards integrating them into our overall strategy?
As our market research indicates, companies' primary challenges are measuring and assessing their sustainability KPIs and the Return on Investment (ROI) on sustainability projects. This means that while the intent is present, proper tracking and a coherent understanding of these metrics are seemingly absent. Sustainability KPIs can provide a structured approach to measuring the business's environmental and social impact. Companies can craft targeted strategies, reduce waste, and minimize resource usage by putting numbers to sustainability achievements. However, there's a need to understand that KPIs are not just a scorecard. They should create a foundation for continual improvement and robust decision-making that integrates sustainability into every business level.
Measuring sustainability KPIs accurately and effectively is more than just a corporate social responsibility strategy – it's a business imperative. Having an insight into sustainability performance enables businesses to control risks, identify areas needing improvement and capitalize on innovation opportunities. However, the first step is acknowledging the need to track and measure these KPIs as part of our corporate strategy.
Thoroughly tracking carbon emissions, energy consumption, water usage, and waste production, among other KPIs, can help create tangible goals directly tied to business performance. For example, a company could aim to reduce scope three emissions by 25% over two years, directly influencing energy usage and waste production. To facilitate this, businesses need a reliable, efficient, and scalable system for collecting and analyzing sustainability data. Technology offers substantial promise with advanced analytics, IoT devices and AI tools that can simplify this process remarkably. Creating and implementing sustainability KPIs is no simple task and requires a cultural shift within the company. Encouraging a culture that understands and values the importance of incorporating sustainability into the overall corporate strategy is paramount.
Our recent market research is a valuable resource for further insights into the pivotal role of how digital technologies can enable accurate sustainability KPI tracking. Elevate your understanding and approach towards sustainability by exploring our comprehensive market research.
