Monday, April 4, 2011

Setting Measures

From the data collected, a general picture of what key measures and targets to choose can be formed in order to help manage performance over time. Considerations in determining the measures and targets to use include:
1. Legislative considerations and compliance indicators;
2. Supporting business efficiency - for example, reduced vehicle-fleet emissions going hand-in-hand with reduced ineffective visits and improved customer satisfaction and lower cost of fuel;
3. Engaging employees effectively in furthering environmental improvements, or measuring the performance of employee engagement; and
4. Stakeholder considerations-ranging from the interests of investors and analysts to NGOs, regulators and others, dependent on the nature of the industry concerned.

Measures should relate to the areas of the greatest impact in your business - for example, raw material or energy use-and may be absolute, relative or weighted measures and targets. Which of these to use (or rather which combination), will depend on the need to measure simple absolute consumption-for e.g. KwH electricity per annum; to measure consumption relative to units of production in order to show effeiciency of resource use; or to combine measures on a weighted basis where the end product or service whose environmental impacts being measured is a combination of different elements. It is also important to consider whether broader indicators may be included within the portfolio selected to measure environmental performance. These might, for e.g., include measures that reflect employee engagement with environmental impacts, for e.g. staff surveys to measure engagement with energy reduction in the business.

While these measurements are not directly linkable to improved environmental performance, they provide a powerful indicator of the level of employee engagement in making changes and reductions. Whatever metrics are chosen, the resulting data will need to be presented clearly in order to ensure appropriate impact with key stakeholders, whether they are internal or external. Use of graphical presentation, trending of data and summary analyses are among the techniques that will have maximum impact.

A key decision is also what to publish externally, and what to retain for internal purposes only. Many organizations are also faced with a decision as to what to publish online, and what to put in the traditional hard copy annual report/sustainability report. Again, these decisions will be driven primarily by the needs of the audience.

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