What are the most effective environmental impact reduction metrics for businesses?

Indeed, employing carbon emissions as a metric to gauge the environmental footprint of both organizations and individuals is undeniably effective. However, it is imperative to ensure that the methodologies employed for calculating greenhouse gas (GHG) emissions are scientifically endorsed and the entire process maintains a high level of transparency. This meticulous approach not only enhances the overall quality of the assessment process but also mitigates the risk of encountering greenwashing incidents in the future.

The best metric is, interestingly, not the carbon footprint. We know that negative environmental impacts are not limited to Green House Gases, this is why we talk about Nature, Water, Biodiversity, & so on. The OEF method, developed & endorsed by the EU Commission, defined a methodology to calculate the total environmental impact of an organization, its "Organizational Environmental Footprint". The method combines 16 categories of impacts, one of them being carbon, so it encompasses the carbon footprint, & more, into one single company metric. You can improve your carbon footprint but actually deplete water & metal resources, and fill the soil with chemicals. Not with the holistic and systemic OEF, making it, by definition, the best metric.

As métricas de redução de impacto ambiental mais eficazes para as empresas variam de acordo com o setor de atuação, o tamanho da empresa e os objetivos específicos de sustentabilidade. No entanto, algumas métricas são consideradas particularmente importantes e podem ser utilizadas por empresas de diversos portes e setores: Inventário GEE, redução das emissões de CO2, intensidade de carbono, pegada de carbono do produto ou serviços. É importante ressaltar que a escolha das métricas mais eficazes para cada empresa depende de uma análise individualizada do contexto e dos objetivos de sustentabilidade da organização.

Effective environmental impact reduction metrics for businesses include carbon footprint, energy consumption, water usage, waste generation, biodiversity conservation, sustainable sourcing, emissions intensity, ecological footprint, pollution prevention, and circular economy metrics.

Si bien es cierto la emisión de gases del efecto invernadero es uno de los indicadores que esta de moda, cada organización deberá determinar sus mejores indicadores basados en su contexto. Adicionalmente es conveniente tener en cuenta los estándares internacionales a la hora de realizar el calculo de los indicadores de existir estos, como es las normas ISO 14064 e ISO 14067 para el caso de huella de carbono.

A Avaliação do Ciclo de Vida (ACV) é uma ferramenta poderosa para avaliar os impactos ambientais de um produto, serviço ou processo ao longo de todo o seu ciclo de vida. Ela considera todas as etapas, desde a extração de matéria-prima até o descarte final, quantificando e caracterizando os impactos em diferentes categorias, como: mudanças climáticas, esgotamento de recursos, poluição através da geração de resíduos e efluentes, riscos a saúdes humanas, impactos sobre a biodiversidade.

Environmental Performance Categories: Measures can be categorized into impact, risk, emissions/waste, input, resource, efficiency, customer, financial, normalized, and aggregate metrics. This comprehensive approach facilitates a better understanding of environmental performance from various perspectives, supporting continuous improvement. Environmental Management Tools: The implementation of sustainability management tools (e.g., life cycle assessments, sustainability reports) has been shown to effectively reduce environmental impacts per unit of revenue. Different groups of tools are found to be effective for different purposes, indicating the importance of selecting the right tool for the intended environmental objective

A powerful metric is the total cost of waste (TCW), the financial costs of a company's waste, including disposal fees, wasted raw materials, labor, and energy. It provides a monetary incentive to reduce waste. For example, a retailer could measure the TCW from unsold food, plastic packaging, damaged products, etc. A manufacturer could track waste materials, scrap, hazardous waste handling, and waste generated along the supply chain. Calculating TCW highlights the hidden costs of unused materials and unproductive processes. It can motivate waste reduction strategies like lean manufacturing, recycling, repurposing, and circular business models. TCW connects sustainability to financial returns - conservation driven by the bottom line.

Measure and reduce greenhouse gas emissions across operations, transportation, and supply chain are crucial for global companies. Science-Based Targets are grounded in scientific research and provide clear benchmarks for emissions reduction aligned with the goals of the Paris Agreement. By setting and achieving SBTs, companies can not only reduce their environmental footprint but also demonstrate leadership in sustainability.

As métricas baseadas em ciências elas oferecem uma abordagem sistemática e fundamentada para entender e minimizar a pegada ambiental de atividades, produtos ou serviços. Aqui estão algumas maneiras como isso pode ocorrer: ajudam a estabelecer limites claros que definem o quanto de impacto é aceitável,promovem a ideia de reduções absolutas em emissões de gases de efeito estufa, consumo de recursos e outros impactos, fornecem uma base sólida de dados para a tomada de decisões, permitindo que as empresas priorizem ações, melhora a transparência sobre os impactos ambientais e permite que as organizações comuniquem seus progressos, permitem a comparação do desempenho com outras empresas.

Science-based targets (SBTs) are greenhouse gas emission reduction targets aligned with climate science to limit global warming to well below 2°C above pre-industrial levels. By adopting SBTs, businesses commit to reducing their emissions in line with the latest climate science recommendations, contributing to climate resilience and sustainability. SBTs provide a clear framework for setting ambitious emission reduction goals, engaging stakeholders, and driving innovation across value chains to transition to a low-carbon economy.

Os indicadores de economia circular são essenciais para reduzir os impactos ambientais, pois promovem a eficiência no uso de recursos e a minimização de resíduos. Ao focar na reutilização, reciclagem e na manutenção de produtos e materiais em ciclos de uso contínuos, esses indicadores ajudam a diminuir a demanda por extração de novos recursos e a reduzir a quantidade de resíduos enviados para aterros. Além disso, incentivam inovações em design de produtos, processos de produção mais sustentáveis e modelos de negócios baseados na utilização prolongada de produtos, contribuindo significativamente para a conservação de recursos naturais, a redução da pegada de carbono e a promoção de uma economia mais sustentável e resiliente.

There are multiple matrices for different sectors some of them are as follows : Global Reporting Initiative: A holistic and comprehensive guidance and matrices to align with Sustainability ( ESG) requirements. Pharmaceutical Supply Chain Initiatives: Provides matrices and guidance for pharmaceutical industry. Generally, IPCC, SBTI , UNGC recommendations are the best to build your company’s sustainability vision and strategy.

Carbon Footprint: This measures the total greenhouse gas emissions caused directly and indirectly by a business. It is crucial for identifying and implementing strategies to reduce a company's contribution to climate change. Energy Efficiency: This monitors how efficiently a business uses energy, encouraging the adoption of renewable energy sources and the implementation of measures to reduce energy consumption. Focusing on these metrics allows businesses to significantly reduce their environmental impact by targeting the major contributors to global warming and resource depletion.

One metric that deserves more attention is the biodiversity impact ratio. This assesses the impact of a company's operations on biodiversity by quantifying factors like land use changes, pollution, resource consumption, and the introduction of invasive species. The biodiversity impact ratio can help companies understand their dependence and effect on ecosystems and set goals to minimize damage. For example, a construction firm could measure impacts like habitat loss and fragmentation from new projects. An agricultural business could track soil health, pesticide toxicity, and genetic crop diversity. A manufacturer could evaluate effluent pollution and invasive species spread in shipping.

From my experience, there is no "one size fits all" answer to this question. All the mentioned techniques are of course viable. Some are more fitting to certain industries (e.g. LCAs). Some are mandatory for an ever increasing number of businesses (e.g. carbon footprint). However, one should not disregard the nature of a business in such decisions. For instance, absolute reduction targets are not feasible for fast growing businesses like startups. Here, per-employee KPIs might make more sense. Choose wisely which metrics make sense for your specific use case.

Want to boost your corporate sustainability efforts with effective environmental impact metrics? Don't overlook biodiversity! You could set up metrics surrounding: - Species Diversity Preservation: Protect habitats, monitor species changes. - Habitat Restoration: Restore habitats, like reforestation. - Ecosystem Services: Improve pollination, soil, and water. - Biodiversity Offsetting: Invest in conservation to offset loss. - Stakeholder Engagement: Collaborate for better outcomes. - Regulatory Compliance: Follow nature protection laws. (sounds simple, but I have seen it all lately..) - Targets Achievement: Set and track conservation goals.