Environmental performance indicators (KPIs) are the primary mechanism for demonstrating how effectively a company achieves its environmental objectives.
In the current environment, companies are confronted with the constant need to adapt to new market demands.
A growing number of companies have assumed that acting in an environmentally responsible manner is more than a legal obligation, it positively affects the success of their business. Improving environmental performance has become part of corporate strategy.
The definition of strategic objectives in the environmental area must be supported by a set of indicators that allow to assess the impact of the implemented measures and to check whether the objectives are being achieved.
The definition of indicators, also known as KPIs (Key Performance Indicators), allows companies to evaluate their performance in the environmental area. On the other hand, the measurement and analysis of indicators allow the reporting of what is measured, assigning responsibilities, monitoring and evaluation, and triggering improvement actions.
We list the following best practices in defining KPIs for environmental performance evaluation:
When defining KPIs, consideration should be given to the measurability, which means that the best option is to choose a quantitative indicator. Defining qualitative indicators can lead to a subjective assessment. On the other hand, a very complex indicator or one that is difficult to measure is not appropriate, since the cost of obtaining it may make its operationalization unfeasible.
The calculation formula must be defined and the sources of information for the data supporting the indicator must be identified.
The frequency with which KPIs are calculated and who is responsible for their calculation must be defined. Improvement action plans should emerge as a result of their analysis.
One of the supports used for the definition of KPIs in the area of environmental performance is the standard IS0 14031: Environmental management – Environmental performance evaluation – Guidelines.
The ISO 14031 standard distinguishes three types of environmental performance indicators:
1. Management Performance Indicators
Environmental performance indicators that provide information about management efforts to influence the environmental performance of the company.
Example of indicators:
2. Management Performance Indicators
Environmental performance indicators that provide information about the environmental performance of operations.
Example of indicators:
3. State of the Environment Indicators
These are indicators that reflect the environmental quality conditions in the area surrounding the company.
Example of indicators:
Concluding, we can say that environmental performance indicators (KPIs) are the main mechanism for demonstrating the effectiveness with which a company achieves its environmental objectives, so the methodology used in their definition and the accuracy used in their calculation are very important.
1 years ago
1 years ago
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