What is an Environmental Footprint?
Otherwise known as an ecological footprint, an environmental footprint is used to measure the impact of people and organisations on the environment. It focuses on the balance between the demand and the supply of nature.
For businesses, this concept covers multiple criteria that take into account the environmental impact of the production of goods and services throughout the entire cycle from development to post-sales and traceability.
Monitoring and measuring environmental footprint is crucial in lessening or correcting the negative impact of a company’s production process on the environment. For most operations, short-, medium-, and long-term environmental goals are set in place.
Types of Environmental Footprint
Environmental footprint can be categorised into several indicators that measure a different aspect of organisational impact on the planet. This includes:
- Carbon Footprint: This measures the total greenhouse gas emissions, primarily carbon dioxide (CO2), produced directly or indirectly by activities like energy consumption, transportation, and manufacturing. Reducing carbon footprints is essential for meeting climate change goals.
- Water Footprint: This refers to the amount of freshwater used in production processes and daily activities. Industries such as agriculture and manufacturing often have a significant water footprint, making conservation efforts critical for sustainability.
- Ecological Footprint: This calculates the amount of natural resources humans consume compared to what Earth can regenerate. It includes land use, deforestation, and biodiversity loss. Managing the ecological footprint is vital for preserving ecosystems and maintaining balance.
- Waste Footprint: This focuses on the amount of waste generated, particularly non-recyclable waste that ends up in landfills, polluting land and water sources. Reducing waste footprints through recycling and sustainable practices helps lower environmental harm.
Why is measuring environmental footprint important?
Environmental footprint is crucial for business for several reasons, including:
- Regulatory Compliance and Risk Management: Over the last few years, governments and regulatory bodies worldwide have grown stricter in imposing environmental laws on organisations and businesses. Monitoring environmental impact eases the burden of complying with these regulations, ultimately avoiding penalties.
- Cost Savings and Operational Efficiency: Tracking and measuring your environmental footprint can reveal inefficiencies in energy use, water consumption, and waste management. This provides operations the insight to implement strategies to reduce consumption, leading to significant cost savings.
- Enhanced Brand Reputation and Competitive Advantage: Consumers, investors, and business partners are increasingly prioritising corporate sustainability. Measuring and reducing your environmental footprint enhances your company’s reputation as a responsible and forward-thinking organisation. Demonstrating a commitment to sustainability can differentiate your brand from competitors, attracting environmentally conscious customers and stakeholders.
How to Measure the Environmental Footprint of Your Company
The most common way to measure environmental impact include:
- Identify relevant indicators to measure: Understanding your company’s environmental impact starts with identifying which metrics or indicators are most relevant to your operations. Priority metrics can vary depending on your industry and specific sustainability goals.
- Select established frameworks and standards for comparison and analysis: Choosing widely recognized frameworks and standards, like the GRI Standards, SASB, or TCFD, ensures consistency and credibility in your environmental footprint assessment.
- Collect and analyse data: Collecting as much data as possible results in a more comprehensive assessment of a company’s environmental standing. In this case, it is best to conduct internal and external audits for an unbiased approach.