According to Efficio Consulting 38% of the organisations trying to start their sustainable procurement journey are unsure about how to measure sustainability. And those who already have established sustainability metrics, often fail to integrate these together with other business metrics, such as costs, quality and service. However, it is highly recommended to consolidate them, e.g. in a balanced score card. This enables procurement professionals to integrate sustainability factors into their daily decision-making process.
Also, the author outlines how to structure sustainability KPIs by applying the Triple Bottom Line approach. The Triple Bottom Line approach divides sustainability into the three following sub-categories:
- People (social sustainability): e.g. diversity and equality, fair treatment, ethical labour, etc.
- Planet (environmental sustainability): e.g. replenishing natural resources, renewal energy, water and land use, etc.
- Profit (financial sustainability): e.g. supply security, price stability, healthy profit margin, etc.
What’s more, it is explained how to apply the key principles for establishing clear and effective KPIs. And at the end of the report you can find a great overview of potential KPIs for your organisation.
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(Picture by Matt Howard, Unplash)