Achieving Sustainability through the use of ERPs


 Achieving Sustainability through the use of ERPs

Sustainability is one of today’s main concerns. Climate change, greenhouse emissions and the general damage the environment has suffered, affect all of us who live on planet Earth. Climate action is number 13 inside the UN’s 17 goals for 2030 Agenda for Sustainable Development. We want to focus on a problem enterprises can help with, that affects not only businesses, but humans: greenhouse emissions. Additionally, we’ll introduce ERP systems as a crucial ally within this battle for a better planet.

The year 2020 showed us that it is possible to have a dramatic impact on the environment. According to the UN during that year, production-related CO2 emissions decreased by 5.2% due to COVID-related restrictions. However, in 2021 when these phased out we reached the highest level of emissions ever, rising up to 6%. These emissions can cause several disastrous outcomes, including but not limited to extreme weather events such as wildfires, droughts and tropical storms. This is fatal for humans, however it has also been reported that supply chains have also been compromised due to these uncontrollable changes.

It should come as no surprise why society is focusing towards a sustainable way of life and seeking businesses that support this goal. From customers to potential employees this subject has gained importance inside their decision making process.

Why many companies can’t achieve sustainability

Customers are acquiring products and services from companies that are consciously trying to reduce their carbon emissions. Also, potential employees want to work inside an enterprise whose values align to theirs. This may be a crucial factor as to why inside a CEO study made in 2021 it was shown that 65% of CEOs are already advancing towards a net-zero business model.

The net-zero business model is basically trying to adjust a company’s processes in such a way that the amount of greenhouse gases produced can be balanced out with the amount that is removed from the atmosphere. However, for this to happen there is one major difficulty. 63% of CEOs reported their enterprises were unable to measure Environment Social and Governance (ESG) data across their value chain. And this is where ERP systems can become your most treasured ally. 

Sustainability focused softwares

Nowadays there are various ERP software solutions that can help any type of business. It’s never been easier to get insights about the carbon footprint of individual products. With this type of data, not only optimization but sustainability can be achieved in production lines. These insights can help you define limits and automatically compare them to your results. In other words, you’ll always be informed in case you exceed pre-established performance levels. Additionally, ERPs can create forecasts for future periods based on historical data. The forecasts could be based on the company’s greenhouse emissions. 

These ERP systems can be vital in clearing pathways in order to optimize and procure an eco- friendly use of resources. They tend to be easy-to-use and accessible everywhere through cloud-based software, although they come with multiple deployment options. They can help your management board create auditable environmental KPIs and overall keep tight control over the sustainability of your business with measurable results.

Taking action doesn’t need to be complicated in order to obtain positive results. You just need the right tools to do so. Let’s focus on building improved, sustainable businesses.

Let’s work together for a greener future.

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