WinningKPI - Sustainability BalancedScorecard - KPI for Measuring of % Decrease in Energy Consumption posted in category Sustainability BalancedScorecard KPI details: This indicator is for measuring the % decrease in energy consumption, over a given period of time. This is measured by calculating the % by which energy use has been decreased.
Monitoring and moderation energy use can have a great impact on sustainability; hence part of the strategies is to reduce the consumption.
In many companies they try to tackle this from roots, putting posters around the office with notices such as:
1. A computer left on overnight consumes as much as n numbers of printers
2. A printer left on overnight consumes as much as the salary for one person
3. A light left overnights consumes as much as….
etc (please note the statements above are for example only, may not be accurate).
The downturn to this KPI as part of a Sustainability strategy is that most companies work on fixed energy contracts, where a certain value of energy is paid upfront and available for consumption.
Formula:
(Energy Consumption Value at the beginning of measurement period - Energy Consumption Value at the end of measurement period) / Energy Consumption Value at the beginning of measurement period x 100
KPI Unit: %
KPI Time frame: update annually Posted by Oana Boteanu | Help to protect community: Flag for moderation
Ideas suggested by WinningKPI community:Here are comments:
Let us assume the following example in order to gain a better understanding of how to use this KPI (please note, hypothetical values are used in this examples, real life values may vary):
Company A recorded an energy consumption of 60,000,000 KWh for the 2010/11 period.
A new manager was brought in to improve the company’s sustainability records. In terms of energy consumption, the manager incorporated several energy saving techniques and carbon management projects.
The strategic KPI was set at a 15% decrease in energy consumption over the next year.
We assume that for 2011/12 the energy consumption was of 54,000,000.
Let’s see how the formula above will be calculated for the actual KPI:
(60,000,000 – 54,000,000)/ 60,000,000 x 100 = 10%
As the decrease was of 10% at the end of the measurement period, this shows how the actual KPI is % behind planned KPI.
Good thing to keep in mind, that KPIs are great to measure performance, but it is expected that they will not always be on point. This is why it is useful to measure the regularly and build strategies based on them which will help you meet your goals.
Oana Boteanu | + | October 29, 2012 at 7:43 pm
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