Benefits of Environmental Pillar KPIs

The importance to adapt Environmental Management Systems

The main benefits for organizations implementing an Environmental Management Systems are(Banerjee, 2001):

  • reduce in waste
  • cost savings
  • improvement in product and quality

Impact of the environmental topics on a company

Environmental risks can also have a negative impact on a company and its business models:

The two main categories of risks are associated with:

  • Physical risks= due to extreme weather, flooding, drought and long-term impacts like temperature changes, biodiversity changes and changes in the yield capacity of areas and soil
  • Risks associated with the transformation towards a climate-resistant economy=market risks in the form of changes in demand due to a shift towards climate-neutral suppliers and products, political risks of implementing mandatory energy efficiency regulations, carbon taxes, energy price rises, and technological risks such as the migration to more climate-friendly drive systems
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