SD1
Environmental Sustainability Ratio
The Environmental Sustainability Ratio measures the ability to utilize sustainable resources (material, energy, activities, and services) in operating the supply chain. It aggregates the sustainability ratios of resource Intake, Recovery, and Output by 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. Intake resources include, but are not limited to:
- Raw materials
- Packaging materials
- Catalysts
- Traditional energy sources: Electricity/Natural Gas/Oil
- Alternative energy sources: Waste
Output resources include, but are not limited to:
- Air emissions
- Cooling and waste water
- Solid waste
Calculation
| Environmental Sustainability Ratio | |
| = | Intake Sustainability Ratio × Recovery Ratio × Output Sustainability Ratio |
| Environmental Sustainability Ratio | |
| = | SD11 × SD12 × SD13 |
where
- Intake Sustainability Ratio = Sustainable resources acquired as a percentage of total resources acquired
- Recovery Ratio = Recovered resources as a percentage of total resources used
- Output Sustainability Ratio = Resources sustainably disposed as a percentage of total resources disposed
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 report period-to-period trends.
- Resources include: Materials, Energy, Packaging, Activities, and (acquired) Services.
Hierarchy
| ID | Name | Level | x |
|---|---|---|---|
| SD | Sustainability | 0 | SD |
| SD1 | Environmental Sustainability Ratio | 1 | SD1 |
| SD11 | Intake Sustainability Ratio | 2 | SD11 |
| SD12 | Recovery Ratio | 2 | SD12 |
| SD13 | Output Sustainability Ratio | 2 | SD13 |
Process(es)
| ID | Name | Level | x |
|---|---|---|---|
| G4 | Manage Sustainability | 2 | G4 |
| G406 | Report and Communicate | 3 | G406 |
| S | Source | 1 | S |
| S0 | Strategic Sourcing | 2 | S0 |
| S1 | Source-to-Replenish | 2 | S1 |
| S2 | Source-to-Order | 2 | S2 |
| S3 | Source-to-Engineering-Order | 2 | S3 |
| M | Make | 1 | M |
| M1 | Make-to-Stock | 2 | M1 |
| M2 | Make-to-Order | 2 | M2 |
| M3 | Make-To-Engineering-Order | 2 | M3 |
| M4 | Re-Make | 2 | M4 |
| D | Deliver | 1 | D |
| D1 | Deliver-From-Stock | 2 | D1 |
| D2 | Deliver-to-Order | 2 | D2 |
| D3 | Deliver-To-Engineering-Order | 2 | D3 |
| D4 | Deliver Returns | 2 | D4 |