Sustainable Production

Indicators of Triple Bottom Line

Watan Chugh
3/11/2014

ENVIRONMENTAL INDICATORS/PLANET
Environmental variables should represent measurements of natural resources and reflect potential influences to its viability. It could incorporate air and water quality, energy consumption, natural resources, solid and toxic waste, and land use/land cover. Indicators are: Electricity Use: Greenhouse gas emissions arising from electricity use are calculated using the following formula: Greenhouse gas emissions (t CO2-e) = electricity used (kWh) x emissions factor/1000 Transport: Vehicles powered by fossil fuels create greenhouse gas emissions. There are two options for calculating greenhouse gas emissions from transport activities, and the approach adopted will depend largely on data availability. The first option is based on the quantity of transport fuels consumed by an organization. Separate calculations should be carried out for each fuel type. Greenhouse gas emissions (t CO2-e) = fuel quantity (kL) x energy content of fuel (GJ/kL) x emission factor (kg CO2-e/GJ)/1000 The quantity of each transport fuel consumed can typically be determined by reviewing supplier invoices in conjunction with fuel inventory information. Waste Disposal: Waste decomposition is a source of greenhouse gas emissions, primarily because it releases methane. The quantity of emissions depends on the nature of the waste. Organizations that dispose of waste to landfill should use the formula: Greenhouse gas emissions (t CO2-e) = [((waste quantity (tonnes) x DOC x DOCF x F1 x 16/12) - R) x (1-OX)] x GWP CH4

Total Materials Use: This indicator provides information on how an organization can
determine the nature and scale of materials-use associated with its business operations, and how to assess the scope for reducing material consumption and costs. Water Indicator: This indicator provides information on how an organization can describe projects and programs it has developed and implemented to decrease water consumption, demonstrating its commitment to efficiently managing water resources.

SOCIAL INDICATORS/PEOPLE
Social variables refer to social dimensions of a community or region and could include measurements of education, equity and access to social resources, health and well-being, quality of life, and social capital. Indicators are: Rate of customer complaints and/or returns METRIC - Rate (e.g., number of complaints/returns per 100,000 products sold) GOAL - Achieve zero customer complaints and returns. SIGNIFICANCE - This is an indicator of production/service quality that is directly linked to organizations business and economic performance. In addition, reducing the rate of returns decreases waste generation (or recycling) and thus the burden on the environment. Number of employees per unit of product/rupees sale. METRIC - Number GOAL - Increase employment opportunities for the local community. SIGNIFICANCE - Employment from the local community leads to enhancement and revitalization of the area. In a time when natural resources are in short supply and labor is abundant6, the goal should be to increase labour intensity and reduce material intensity of production.

Average length of service of employees. METRIC - Rate (Years) GOAL - Increase the average length of service of employees). SIGNIFICANCE This rate indirectly reflects employee well-being and job satisfaction. Low average length of service is associated with expenses for recruitment and training of new employees, and reduced production efficiency. Employee training. METRIC - Hours GOAL - Increase duration for employee training. SIGNIFICANCE - Continuous training of employees is critical for the bottom line of an organization. a) Improves business, environmental and safety performance of an organization. b) Raises employees job satisfaction and work morale. c) Promotes organizational learning and long-term competitive advantage. Workers who report complete job satisfaction. METRIC - Percent GOAL - Increase employee well-being and job satisfaction.

SIGNIFICANCE - Employee well-being and job satisfaction lead to numerous tangible and intangible benefits, such as increased productivity, reduced absenteeism and turnover.

ECONOMIC INDICATORS/PROFIT
Economic variables ought to be variables that deal with the bottom line and the flow of money. It could look at income or expenditures, taxes, business climate factors, employment, and business diversity factors. Indicators are: Surplus: Operating profits and expenditure on fixed capital Employment Hours: Full time equivalent employment Income: Total compensation for employees

Community spending and charitable contributions. METRIC - Percent. GOAL - Increase community spending and charitable contributions. SIGNIFICANCE - Community spending and charitable contributions are the first step in sharing wealth. Such spending may help enhance local (or global) community economically, culturally and physically. No company can exist in isolation from community, since its customers are members of the community. Their purchasing power is directly linked to the companys sales and profitability.

Materials used (total and per unit of product) METRIC - Kilograms GOAL - Reduce materials used SIGNIFICANCE - Depletion of non-renewable materials (fossil fuels and metals) and overconsumption of renewables (wood, fisheries, plants, soil) is becoming the limiting factor for traditional economic growth. Conserving and more efficient resource use is critical for the survival of humankind, considering present population growth and rate of consumption.