76. Business Intelligence for Sustainable Management
“Most (companies) still take a fragmented reactive approach-- launching adhoc initiatives to enhance their “green” credentials, to comply with regulations, or to deal with emergencies…..That’s no longer enough” ( McKinsey & Company, copyright 2011, The Business of Sustainability: Putting it into Practice http://goo.gl/VXgsj)
Business Intelligence for Sustainable Management offers corporations the opportunity to capitalize on new revenue opportunities, reduce costs, and manage risks. Yet, while much is written about the critical need for sustainable management, little or nothing has been done to provide executives with effective systems to manage sustainably at scale. Existing approaches are spreadsheet based, manual, costly, and do not scale. In summary, a critical need exists for a viable enterprise quality system for sustainable management. Climate Earth has answered this critical need with a game changing solution that is proven with Fortune 100 clients.
Climate Earth’s Business Intelligence for Sustainable Management (BISM) system is a software and data platform that merges environmental impact data with financial data to provide sophisticated business analysis and timely reporting, resulting in efficient and fact based management of the sustainable enterprise.
Each BISM system is custom built for a client in 90 days and then maintained and updated for the customer as a software and data subscription service. The initial build process consists of three parts, 1) Environmental life cycle analysis, 2) Database design, and 3) Delivery of a web-based analytic portal.
The environmental life cycle analysis consists of Climate Earth experts analyzing business transaction data and using Climate Earth software to map environmental impact (Kg of CO2, Kg water, waste, toxics, etc) to the customer’s purchase transactions and general ledger expenses. This step links each financial transaction to its environmental impacts.
In parallel our database experts develop a custom database design based on the customers’ existing management reporting structure (by country, by region, by business unit, by product line, etc.) allowing the company to report environmental impacts and assign management accountability to operating managers in the same way that financial budgets and growth targets are assigned.
In the final step we produce the web-based analytic portal by loading the environmental impact data and financial data into the custom database and generating environmental dashboards, data visualizations and analytics. Metrics are in financial context, such as “kg of carbon per profit dollar”, or “kg of water per unit cost”. These powerful metrics allow managers to simultaneously consider the financial and environmental impact of every business decision.
Placing environmental impact in financial and organizational context is a game changer for management creating the opportunity for a highly efficient and sustainable enterprise while opening the door to a sustainable economy.
Why it should be recognized:
Building a sustainable economy is critical to the future of our nation and perhaps the planet. Most of the focus for creating a sustainable economy has been placed on producing alternative energy sources, yet it is also well understood that 50% or more of energy produced is wasted and our economy and economic activity is also depleting the world’s supply of other natural resources. More focus needs to be placed on sustainably managing the means of production. The solution must be new management systems that operate at scale and at the same level of efficiency as existing financial management systems. The system must incorporate “external” environmental impacts into the financial management systems and process, and not be separate as profit and growth remain fundamental to a viable economy. Climate Earth is the first in the world to deliver such a system, and to prove it at scale with the world’s largest companies. The company should be recognized for this accomplishment.