Sustainable Operations

Areas of sustainable operations that are common to all industries include greenhouse gas (GHG) emissions, water management, and waste reduction and management:

• GHG emissions refer to the release of certain gases into the Earth’s atmosphere that contribute to the greenhouse effect. GHG emissions reporting is becoming a standard requirement among approved and proposed sustainability regulations, such as the Corporate Sustainability Reporting Directive (CSRD), the International Sustainability Standards Board (ISSB), the Securities and Exchange Commission (SEC), and other jurisdictions and standards-setters.
• Water management refers to the optimization of water usage to minimize waste, along with safe disposal of wastewater to prevent environmental damage.
• Waste reduction and management focuses on minimizing waste generation through efficient operational practices and product design, along with appropriate waste management strategies such as recycling or composting.

Other areas of focus that span multiple industries include implementing energy-saving measures and using renewable resources as a cornerstone of sustainable operations; rethinking supply chain practices to involve ethical sourcing of materials; fair trade practices; promoting diversity, equity and inclusion in the workplace; community engagement; and designing products that have minimal environmental impact throughout their lifecycle — from sourcing materials, manufacturing processes and usage efficiency to end-of-life disposal. Read more.

GHG emissions refer to the release of certain gases into the atmosphere that contribute to the so-called greenhouse effect and raise Earth’s temperature. These gases include carbon dioxide, methane, nitrous oxide and fluorinated gases, all of which trap heat from the sun in the atmosphere near the Earth’s surface, leading to global warming and climate change. Managing GHG emissions is an important part of sustainable operations regardless of industry sector. Companies can reduce their GHG emissions through various means such as improving energy efficiency, switching to renewable energy sources or cleaner fuels, reducing material waste and improving waste management practices, among others.

It is important for businesses to analyze their operations and understand which activities contribute to GHG emissions. Aside from natural processes, such as respiration and volcano eruptions, for example, human activities like deforestation, land-use changes and burning of fossil fuels contribute to the release of carbon dioxide.

Other greenhouse gases, such as methane, are emitted during the production and transport of coal, oil and natural gas. Methane is also emitted by livestock and other agricultural practices and by the decay of organic waste in municipal solid-waste landfills. Agricultural and industrial activities, combustion of fossil fuels and biomass, and certain treatments of wastewater contribute to the emission of nitrous oxide. Lastly, fluorinated gases are utilized in a variety of industrial applications. While fluorinated gases are less common, they are a much more potent greenhouse effect contributor than other GHGs due to the longer periods they can remain in the atmosphere. Read more.

Technology providers, industry groups, public-private partnerships and third-party experts in specific areas can all help a company improve sustainability in its operations and supply chain. For example:

• Engaging with technology providers can help drive insight into real-time tracking of resources to optimize resource utilization.
• Engaging with industry groups can inform best practices and facilitate knowledge-sharing.
• Outsourcing certain operations to third-party providers who are known for their sustainability can improve the overall score of the business.
• Investing in renewable energy projects via third parties can be part of an organization’s carbon-offset strategy.
• Engaging with public-private partnerships can help secure funding for large-scale sustainability projects that otherwise may be financially burdensome.

Remember that while each of these strategies can help boost an organization’s sustainability efforts, they also come with their own set of challenges and risks — including costs, time commitment, data security, dependency on other entities, etc., hence, it is crucial to consider carefully your organizational needs and capabilities before engaging with external entities. Read more.