Achieving Data-driven Decision, Profitability in Organisations
Organieations can effectively measure progress, make data-driven decisions, and improve profitability and sustainability performance, should they effectively utilise Environmental, Social, and Governance (ESG) metrics, writes Emma Okonji
Experts are of the view that sustainability is crucial for humanity’s survival and is increasingly proving to be a key driver of business strategy, offering opportunities for positive environmental and societal impact while also increasing profitability. They however said organisations often face challenges in developing efficient and sustainable models.
A Nigerian supply chain management professional with a background in ExxonMobil, a global Fortune 10 energy corporation, and Cummins Inc, Mr. John Odebode, said one of the main obstacles that organisations faced in recent times, was about decision-making, where organisations often face the challenge of choosing between environmentally friendly options, which are often expensive, and cheaper alternatives that harm the environment.
emissions and 50-70 per cent of operating costs, adding that Harvard Business School identifies four components for redefining return on investment (ROI) in supply chain sustainability: cost reduction, revenue growth, risk management, and intangibles.
In his practice, Odebode has facilitated compliance with environmental sustainability regulations from a supply chain standpoint by managing logistics for gas flaring monitoring devices and conducting research on hydrogen fuel cell manufacturing ecosystem as an alternative to mainstream energy.
He believes that organisations must embrace sustainability as a core principle integrated into their strategies.
According to him, “Sustainability is not just an ethical responsibility but also a driver of long-term profitability and success. To address decision-making challenges, organizations should prioritize the environment and human capital alongside financial considerations. Investing in research and development enables cost-effective alternatives that minimise environmental impact without compromising quality or customer satisfaction.
“By aligning strategies with the United Nations’ goals and utilising ESG metrics, organisations can effectively measure progress, make data-driven decisions, and improve sustainability performance. Proactive organisations actively seek opportunities to reduce their environmental footprint, enhance social well-being, and create shared value for stakeholders.”
By embracing sustainability as a core principle, organisations can navigate the path to profitability while making a positive impact on the environment and society, Odebode further said.
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