Key Performance Indicators (KPI)

73

Waste reduction rate

Strategic perspective

Corporate social responsibility perspective

Key performance question this indicator helps to answer

To what extent are we minimising the amount of waste we generate?

Why is this indicator important?

We live in a world where resources are precious and where we can’t afford to waste any. To that end there is a concerted effort by businesses and governments to reduce the waste we produce.

Any business will aim to reduce waste to a minimum, especially if you take the manufacturing industry where raw material cost is often around 60% of the manufacturing costs. However, waste is an important component of any business, and beyond the simple costs of wasted raw materials there are hidden waste costs ...