ENTOUCH Energy Management

10 KPIs to Effectively Track Your ESG Strategy in Distributed Facilities

The right environmental, social, and governance (ESG) strategy should empower your organization to make informed decisions. Often driven by finance and sustainability teams, Facility Managers must understand the organization’s ESG strategy and track leading key performance indicators (KPIs) for success.

1. Energy Use per Facility and Enterprise Level

The most significant environmental KPIs are the ones that evaluate a business’s performance on energy use. In an ESG strategy, the RTU, or rooftop unit, should identify current electricity usage, allow easy comparison against profitability, and provide an enterprise-wide review through one portal.

In order to create practical sustainability goals, there needs to be some measurement system so you can track progress over time while utilizing resources efficiently at every turn possible.

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 ISO 50001 standards for energy management– and take a look at what’s going wrong. The calculation is simple: divide everyday million MJ/year (or whatever unit you’re measuring) by how many days there were in that same timeframe on which improvements were made during one specific period within your company…and voila. You have just figured out whether or not those changes are making things better as planned.

3. Greenhouse Emissions Deriving From Energy Used

Facility Managers should track their greenhouse emissions by looking at how much energy is used. This KPI can be challenging, as there are many different ways to measure it. Even when an amount has been derived from analyzing current industry production within the United States alone, not all locations use exactly alike data for measuring these types of things – making this difficult task more so than others – but with such measurements comes great benefit.  As Facility Manager’s we have a responsibility towards understanding just what our impact on climate change really means; if left unchecked rising temperatures mean increased natural disasters will become more frequent which could lead us down a  path less traveled.

4. Waste Creation

Facility managers should consider the waste of all resources, including physical trash production and wastewater. These factors affect how environmentally friendly your facilities are said to be by Aquicore. The facility’s sustainability can only improve when it comes down to these aspects- considering not just what they produce but also where those items go after use.

5. Value Added to the Economy Through Cost Avoidance

Cost avoidance is a key to sustainability. It reduces overhead and promotes economies, says the experts at FacilitiesNet – so you’ll want to keep your costs under control. When these are low enough for even more significant returns on investment (ROI), consider using energy-efficient lighting or venting systems in order to make cents out of every dollar spent with reinvestment into other areas where savings can translate directly into revenue without having any negative impacts whatsoever.

6. Applicable Laws Governing Environmental Responsibility

Adherence to laws will naturally lead to cost savings within the company, avoiding fines and increasing a business’s sustainability standards. As ISO 50001 becomes more popular and failure in maintaining minimum requirements can devastate an institution as well as put facility managers into the hot seat when it comes time to assess compliance with changing regulations for their industry.

Maintaining good ESG practices is essential if you want to meet your sustainability goals.

7. Investment Costs Versus Savings

Next, it is vital to track investment costs against savings. This conclusively shows the ROI of current improvements and implementation programs for an organization’s sustainability goals to be met with success- whether those aim at reducing greenhouse gas levels or simply boosting their environmental awareness. The cost associated with taking no action against a problem will always be more expensive than putting forth some effort each day towards achieving these objectives; every moment spent doing nothing but resting on past accomplishments is wasted time.

8. Consumer Responsiveness to Improvements

On the surface, it may seem like consumers are indifferent to sustainability improvements. But when you start tracking their experiences with feedback about these enhancements over time – what begins as an average response will grow into overwhelming praise for your company’s efforts.

A truly sustainable business model creates long-lasting value by creating products or services that not only look good now but also stand up well in future years because they were created ethically (and sustainably). Consumers respond most of the time positively; however, there is no way to predict how someone will react to improvement. Collecting the consumer’s responsiveness is an essential part of evaluating the effectiveness of improvements. 

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

Several different fees may apply if you fail to meet specific standards for energy and sustainability. For example, your utility bills might have higher rates due specifically during peak hours when this occurs because it’s most likely being used by those who don’t follow the rules- which means more money goes out but little comes back in.

Boost Your Facilities Performance With a Proven Valuable ESG Strategy Now.

It is critical for facilities managers to create a successful ESG strategy to save money. Failure to consider the repercussions of social interactions governance over a building or facility’s environment can cost businesses time and lead you down an expensive path in your company budgeting efforts. Successful businesses are embracing sustainable, energy-efficient practices that reduce their carbon footprint. This is the key to staying in power and making sure they’re not just a competitor but one of your best customers too.

ENTOUCH will meticulously track your success using our top list for ESG reporting metrics. Find out how you can get started by connecting with ENTOUCH today.

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