Difference between revisions of "SD1"

Revision as of 22:02, 1 December 2021

Environmental Sustainability Ratio measures the ability to utilize sustainable resources (material, energy, activities, and services) in operating the supply chain. It aggregates the ratios of In-Flow, Recovery, and Out-Flow per supply chain and/or supply chains within a line of business.

Resources include all materials, energy, activities, and services required to operate the supply chain. The cost to dispose of such resources. In-Flow resources include, but are not limited to:

• Raw Materials
• Packaging Materials
• Catalysts
• Traditional Energy Sources: Electricity/Natural Gas/Oil
• Alternative Energy Sources: Waste

Out-Flow resource costs include, but are not limited to:

• Air Emissions
• Cooling Water

Calculation

where

• In-Flow = Total cost of acquired resources to generate revenue
• Recovery = Total cost of acquired resources to generate revenue
• Out-Flow = Total cost to dispose of resources
• Revenue = Total revenue generated during measured period

Unit of measure: %

Importance

A higher Environmental Sustainability Ratio indicates that of the resources used a higher portion are considered sustainable resources, reused, and/or sustainably disposed.

Notes

• This metric does not provide insights in the total resources required to operate the supply chain. An overall reduction of resources required should also be rewarded. Companies are recommended to identify metrics for key resources and period-to-period comparison.
• Resources include: Materials, Energy, Packaging, Activities, and (acquired) Services.

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