The right environmental, social and governance (ESG) strategy should empower your organization to make informed decisions, understand where you stand, connect with customers and avoid unnecessary costs, including those deriving from ongoing regulation change. Facility Managers must understand their ESG strategy and track these leading Key Performance Indicators (KPIs) to guarantee its success.
1. Electricity Use per Employee and per Customer
Environmental KPIs are quantitative measures that it evaluates a business’s environmental performance, reports NIBusinessInfo. Tracking the energy use per employee and per customer is the biggest and most important KPI in an effective ESG strategy. It should identify the current electricity costs used by the facility on a level that is easy to compare to profitability, such as a per employee and per customer scale.
2. Ratio of Expected Energy Saved to Actual Use
Measuring the ratio of expected energy saved to actual use reveals additional insights. For example, it can help businesses determine if their current programs align with current ISO 50001 standards for the use of energy. It is calculated by dividing the current energy use by expected energy saved. As the value decreases, performance improves. However, any value over one indicates that more energy is used than is saved through improvements.
3. Greenhouse Emissions Deriving From Energy Used
Facility Managers should also track their greenhouse emissions that derive from the energy used. This KPI can be challenging to track as the exact amount of greenhouse gases produced is derived from analysis of current energy production within the energy industry.
4. Waste Creation
Waste management is another critical factor in your ESG strategy. Facility Managers should consider the waste of all resources, including physical trash production, wastewater, and sewage. These factors affect the “green-ness” of your facility, says Aquicore.
5. Value Added to the Economy Through Cost Avoidance
Cost avoidance increases the sustainability of the business and reduces overhead. As a result, it is critical to keeping costs under control and promotes economies, says FacilitiesNet. Cost savings through energy reductions, renewable energy use, waste reduction, and education hold value as economic stimuli.
6. Adherence to Applicable Laws Governing Environmental Responsibility
Adherence to laws will naturally lead to cost savings within the company as well, not to mention the avoidance of the assessment of fines or penalties for violating standards. As ISO 50001 grows in popularity, failure to maintain adherence could decimate a business. Moreover, changing regulations will put Facility Managers in the proverbial hot seat when it comes to assessing a business’s sustainability standards.
7. Investment Costs Versus Savings
Next, it is vital to track investment costs versus savings. This conclusively shows the ROI of current improvements.
8. Consumer Responsiveness to Improvements
Consumers will respond positively to most sustainability improvements. Track customers’ experiences and feedback regarding such enhancements.
9. Consumer Complaint Resolution
Also, track any complaints that arise and follow through to ensure all complaints are resolved appropriately.
10. Penalties or Fines Assessed Due to Shortfalls
Finally, track the fines or penalties assessed by governments for failure to meet specific energy and sustainability standards. In some cases, the fees may exist within your utility bills as higher rates due to increased use during peak hours.
Boost Your Facilities Performance With a Robust ESG Strategy Now.
Creating a successful ESG strategy is critical to effective facilities management. Failure to consider the ramifications of social interactions, governance of facilities, and environmental responsibilities will isolate business and leads to higher costs. Instead of risking an organization’s success on these simple principles, empower your business with sustainable, energy-efficient processes, including smart building solutions. Also, remember to use the top 10 KPIs to track your organization’s commitment to ESG strategy. Find out how you can get started by contacting ENTOUCH online today.