Introduction
One of the essential components in sustainability management is the implementation of tools used to measure the performance and results of an organization’s use of sustainability practices. There are many approaches to sustainability measures, including different indicators such as an organization’s carbon or water footprint. However, a comprehensive and standardized framework for sustainability assessment is yet to be developed (Longo et al., 2021). The technological progress provided a foundation for the emergence of more complex and flexible sustainability measurement systems. The use of such systems allows companies an opportunity to check their sustainability progress and eases the process of compliance checks with the Sustainable Development Goals.
Sustainability management practices
Sustainability measurement systems primarily operate in the form of software. Some systems are developed concerning specific economic industries, such as the food production sector-focused SMART assessment. The SDG Monitor tool presents a cloud-based software developed to measure an organization’s environmental impact (Tiuttu, 2020). The tool includes different targets and indicators combined in the form of an effective system developed for business purposes. Compared to alternative measure tools, SDG Monitor allows users to view sustainability data across the industry. The information from comparison data can be helpful for setting sustainability goals or for identifying potential areas for development. Furthermore, the tool allows businesses to estimate the influence of their decisions on sustainability progress. Lastly, there is an option for SDG Monitor users to receive additional help in creating a sustainability industry plan for the company.
The results of sustainability development practice can be separated into two different categories. Sustainable development outputs cover the negative influence of the organization on the environment in the form of greenhouse gas emissions, water pollution, solid waste, and noise. On the other hand, outcomes of sustainability development for the company include achieving sustainable transportation, promoting sustainable communities, biodiversity in lands, and zero carbon emissions. Therefore, while outcomes present the desired results, outputs present the result of sustainability development practice’s implementation for environmental safety.
The outcomes included in the use of the SDG monitor tool are created in accordance with United Nations’ Sustainable Development Goals. The SDG developed by the UN includes seventeen categories of goals, such as the fight against global hunger, the availability of quality education, and gender equality. More specific business-related goals include the use of business models and different management policies that focus on the efficient use of available resources, responsible consumption, and sustainable use of environmental resources. The SDG Monitor tool operates across seventeen SDG Goals with 169 corresponding targets and 231 indicators for sustainability measurement (Tiuttu, 2020). Therefore, depending on the company’s industry, the measured outcomes can include the use of renewable electricity resources, diversity index, digital waste production, and employee satisfaction rate.
Conclusion
In conclusion, this essay explored the use of the SDG monitor tool for the measurement of sustainability practice results. The essay defined that the SDG Monitor tool provides a wide range of functions for companies willing to check their progress in compliance with UN Sustainability Development Goals. The program also allows users to compare the progress of sustainability performance in different companies across the industry, which provides helpful information for sustainability management and the decision-making process. The measured sustainability outcomes can vary in different industries and companies. However, renewable electricity resources, promotion of diversity, and increased employee satisfaction rates can present desired outcomes for different forms of businesses.
The balanced scorecard is a system in management that focuses on organizational strategy and vision in one framework. The system targets aligning the organization’s mission with specific objectives in four primary areas of business. The areas include the organization’s finances, relationships with customers, internal business processes, and growth and learning opportunities. According to Benkova et al. (2020), the use of a balanced scorecard provides an alternative insight into a business’s performance in different areas besides its financial effectiveness. Therefore, a balanced scorecard can present a significant source of information about a company’s performance in non-financial areas. Non-financial indicators used in a balanced scorecard can present information more positively, influencing managerial work. Thus, the use of a balanced scorecard can be worthwhile in situations where financial results are not prioritized or in organizations preferring more innovative performance measurement methods.
Process Chemicals Data Collection (PCDC) tool for monitoring sustainability performance used by Apple was created by the company in collaboration with Clean Electronics Production Network (CEPN) (Apple, 2021). The PCDC tool presents a reporting system that helps organize and manage the collected data about chemical usage in electronic products. Furthermore, the tool is freely available for use by other companies in the electronics industry, providing a standard format for reports on chemicals used in electronic device production.
Apple initially developed the PCDC tool for use by the company’s suppliers. The sustainability of the supply chain presents one of the goals of the Apple company. By encouraging the suppliers to use the free sustainability measurement tool, Apple eases the assessment process of suppliers’ inventories. Furthermore, keeping the PCDC tool available for free allows Apple to increase the industry standards of chemicals used as a part of the company’s contribution to environmental protection.
References
Apple. (2021). Environmental progress report.
Benková, E., Gallo, P., Balogová, B., & Nemec, J. (2020). Factors affecting the use of a balanced scorecard in measuring company performance. Sustainability, 12(3),1-18. doi:10.3390/su12031178
Longo, M., Mura, M., Vagnini, C., & Zanni, S. (2021). Sustainability measurement: Evolution and methods. In J. Ren (Ed.), Methods in sustainability science: Assessment, prioritization, improvement, design and optimization (pp. 71-87). Elsevier Science.
Tiuttu, T. A. (2020).SDG Monitor – the smartest tool to measure your sustainability performance. 4 Circularity.