What factors determine whether a particular asset is efficient or not within any given organization? Put it another way, what are the important metrics when it comes to assessing the viability of an asset and its return on investment? Traditionally, these factors are centered around performance based on specific purpose and the benchmarks used reflect manufacturer or industry expectations.
Asset sustainability is now becoming more widely recognized as an indicator of value. Companies understand how their activities may impact the people and environment all around them and are beginning to interpret the true meaning of corporate social responsibility. The company understands that it relies on natural resources to operate and that it must be a better steward of these resources.
Is it possible for a company to maximize its profit potential, while also minimizing its exposure? Certainly, this is a juggling act of immense proportions, especially as stakeholders seem to have more and more visibility into the day by day operations of the company.
Asset sustainability, as a concept, looks into the volume of energy that the company buys and uses as a part of its operation. We know that energy is responsible for carbon emissions and this, by itself, is a huge cause of concern in society. While energy is of course a scarce commodity, we also need to determine how each asset is, individually, sustainable from an energy perspective.
When an asset is purchased for use in the business, it is earmarked for a particular purpose and management refers to manufacturer specifications or industry benchmarks in relation to its performance. By using these parameters, traditionally we determine whether the asset is operating efficiently or not. It’s not normally measured according to its carbon output as an indicator of whether it is sustainable.
Asset sustainability will require a whole new approach to asset design and manufacturer. It is conceivable that such an asset may be designed to be less than ultimately efficient from a pure performance perspective in future, if such a design makes it environmentally unsustainable. This is a significant change in approach and will take some assessment.
Asset sustainability may only be revealed if it is individually monitored, from an energy consumption perspective, of course. This is not the case in the vast majority of organizations, who are only beginning to determine their energy-related carbon footprint as a consequence of their overall electricity use. Individual monitoring, before the meter, will reveal how each asset is performing based on a historical analysis.
We are moving from an era where assets, once installed, are expected to perform satisfactorily until they are projected to be replaced, to an era where asset sustainability is much more important.
Daniel Stouffer has a lot of data about asset sustainability and how a visit to www.verisae.com will aid you.
categories: carbon emissions,environmental damage,climate change,climate,environment
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