Performance Mesaurement - Supply Chain Sustainability School Limited

Why is industry consistency desirable for performance measurement?

If organisations within an industry are measuring different things, in a different way, how can we compare like for like?

The process of performance measurement and management during a project or contract has several business benefits, it:

Ensures that what has been committed to during tender stages will be or is being delivered on the ground.
Enables the supply chain to demonstrate performance against contractual targets and requirements
Enables organisations and project/contract teams to mitigate their own impacts and understand risks and opportunities
Enables companies to gain commercial advantage through their ability to demonstrate performance
Allows companies to demonstrate performance to external stakeholders

More widely, enables companies to write and enact more informed strategies, using data to inform their targets. In time, they can then report performance against these strategies.

Language

However, if the organisations within an industry are measuring different things, in a different way, how can we compare like for like? How can we produce industry baselines and how can companies start to benchmark themselves?

In order to ensure consistency when measuring sustainability performance this SIG has agreed on the following definitions:

Metric: data point that you would like the supply chain to collect data against; in order for you to calculate your indicators.
Indicator: indication of performance; how likely you are to hit your target(s)
Target: need to be SMART. Your clients should be setting targets and communicating them to you
Goal: long term aim/aspiration

Environmental performance measures

The remit of this Special Interest Group was to establish an agreed set of metrics and indicators for partners to measure the same things in the same way, please see the outputs below. We recommend these are adopted by partners and members, and more widely across the Built Environment.

% waste diverted from landfill (calculated by weight)
Total waste produced (by weight) per £1 million spend
Potable and non-potable water use per £1 million spend
tCO2e released per £1 million spend
- including: waste and logistics/deliveries.
- excluding : passenger vehicles (staff and visitors)
% materials purchased that were responsibly sourced (by volume)

Part of this work has been to produce guidance alongside these metrics and indicators, including any relevant unit conversion factors, normalising factors or scope boundaries

Social value performance measures

What constitutes social value on a project is dependent on a wide range of variables, including the project context, wider social objectives and stakeholders requirements. This makes it difficult to standardise on a single or even multiple indicators for Social Value. Therefore the Social Value Special Interest Group has provided a library of indicators and metrics that might be used by clients.

Social Value