Tracking sustainability metrics in material supply is essential for companies that aim to reduce their environmental footprint, optimize resource use, and meet regulatory requirements while maintaining operational efficiency. By monitoring key sustainability metrics, businesses can identify areas for improvement and ensure they are adopting effective sustainable practices throughout the material supply chain. Below are the key metrics to track for sustainability practices in material supply:
- Carbon Footprint of Materials
Metric:
Definition: Measures the total greenhouse gas (GHG) emissions generated in the production, transportation, and disposal of materials.
Why It’s Important:
Carbon emissions contribute to climate change, and tracking the carbon footprint helps companies identify opportunities to reduce emissions, such as through better sourcing, production methods, or transportation.
How to Track:
Use life cycle analysis (LCA) tools to estimate the carbon footprint of materials, considering factors such as raw material extraction, manufacturing, transportation, and end-of-life disposal.
Work with suppliers who track and report their carbon footprint data and set targets for reducing emissions.
- Percentage of Recycled or Reused Materials
Metric:
Definition: Tracks the proportion of materials in the supply chain that are recycled, reused, or made from post-consumer or post-industrial waste.
Why It’s Important:
Reducing the use of virgin materials through recycling and reuse lowers resource depletion, reduces waste, and decreases energy consumption.
How to Track:
Calculate the percentage of materials sourced from recycled content in the total procurement process.
Track the amount of waste diverted from landfills through reuse or recycling programs.
- Water Usage in Material Production
Metric:
Definition: Measures the total volume of water used in the production of materials, including the extraction, processing, and manufacturing stages.
Why It’s Important:
Water is a critical but often scarce resource. Tracking water use helps companies ensure that materials are produced in a water-efficient manner and that water waste is minimized.
How to Track:
Use water consumption data from suppliers and water management systems to calculate the water usage per unit of material produced.
Set goals for reducing water consumption in material manufacturing processes and source materials with lower water use.
- Energy Consumption in Material Production
Metric:
Definition: Tracks the amount of energy consumed during the production and manufacturing of materials, including electricity, fossil fuels, and renewable energy sources.
Why It’s Important:
Reducing energy consumption and increasing the use of renewable energy sources can significantly lower a company’s carbon footprint and operating costs.
How to Track:
Measure energy usage per unit of material and monitor energy sources to ensure an increase in the percentage of renewable energy.
Work with suppliers to collect and track energy consumption data and ensure transparency in energy sourcing.
- Waste Generation and Diverted Waste Percentage
Metric:
Definition: Measures the total waste produced by material manufacturing processes and the percentage of that waste that is diverted from landfills through recycling, repurposing, or reuse.
Why It’s Important:
Reducing waste and maximizing the amount of waste diverted to recycling helps decrease landfill use and supports a circular economy.
How to Track:
Track total waste generated by material production and monitor the percentage of waste that is diverted to recycling, composting, or other repurposing efforts.
Set waste reduction goals and diversion targets and partner with suppliers to reduce overall waste generation.
- Sustainable Sourcing of Materials
Metric:
Definition: Measures the percentage of materials sourced from sustainable or certified suppliers, such as those meeting Forest Stewardship Council (FSC), Fair Trade, or organic certifications.
Why It’s Important:
Sourcing sustainable materials ensures that companies are contributing to environmentally responsible supply chains and supporting sustainable practices in industries like forestry, agriculture, and mining.
How to Track:
Monitor and track the percentage of materials that meet recognized sustainability certifications.
Work with suppliers who provide documentation of their sustainable sourcing practices, such as the use of certified materials and supply chain transparency.
- Transportation Emissions and Fuel Efficiency
Metric:
Definition: Tracks the emissions produced during the transportation of materials, including CO2 emissions per ton-mile or kilometer.
Why It’s Important:
Transportation is a significant contributor to carbon emissions, and optimizing transportation routes, modes, and fleet efficiency can significantly reduce emissions.
How to Track:
Calculate the emissions per unit of material transported and monitor the efficiency of transportation routes and vehicles.
Shift towards low-emission or electric vehicles, and optimize logistics to reduce fuel consumption and transportation-related emissions.
- Packaging Sustainability
Metric:
Definition: Tracks the amount of sustainable packaging used in the shipping and handling of materials, including the use of recyclable, biodegradable, or reusable packaging.
Why It’s Important:
Sustainable packaging reduces waste, cuts down on plastic usage, and lowers the environmental impact of packaging materials.
How to Track:
Monitor and track the percentage of packaging that is recyclable, compostable, or reusable versus single-use plastic packaging.
Partner with suppliers who use eco-friendly materials in their packaging and encourage the reduction of packaging waste.
- Environmental Impact of Material Disposal
Metric:
Definition: Measures the environmental impact of the disposal of materials after their useful life, including their potential for recycling, reuse, or waste-to-energy processes.
Why It’s Important:
Sustainable disposal practices minimize environmental pollution and resource waste, promoting a circular economy and extending the lifecycle of materials.
How to Track:
Calculate the percentage of materials that are recycled or repurposed at the end of their lifecycle compared to those sent to landfills.
Encourage suppliers to have end-of-life plans for their materials and to offer take-back programs or recycling options for used products.
- Supplier Sustainability Performance
Metric:
Definition: Tracks the sustainability practices of suppliers in areas like waste management, water usage, energy consumption, carbon footprint, and sourcing materials responsibly.
Why It’s Important:
Ensuring that suppliers maintain high sustainability standards helps companies meet their corporate sustainability goals and maintain a transparent, environmentally responsible supply chain.
How to Track:
Conduct supplier audits and request sustainability reports from suppliers to ensure they meet your sustainability criteria.
Develop a sustainable supplier scorecard that evaluates key sustainability metrics and factors into supplier selection and retention.
Conclusion
Tracking sustainability metrics in material supply helps businesses optimize their supply chains, reduce environmental impacts, and maintain transparency with consumers and regulators. By focusing on carbon footprints, energy consumption, waste reduction, sustainable sourcing, and other key metrics, companies can improve their environmental performance, support sustainable development, and contribute to the growing demand for green products in the marketplace.
