Asset Sustainability: What It Means To Your Business
It is essential to identify some of the factors which would determine whether or not an organization's asset is efficient
. Seen in another perspective, it is essential to identify fundamental metrics in terms of the assessment of asset viability and in terms of investment returns. Such factors would be centered around performance according to objectives and the baseline for industry expectations.
Asset sustainability is increasingly recognized as an index 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.
What factors determine whether a particular asset is efficient or not within any given organization? Placed in another light, what should be the most essential metrics in terms of asset viability assessment and ROI? Traditional organizations have placed such factors to be central on performance according to specific objectives, with benchmarks reflecting the organization's expected outcome.
Every company needs to decide how it can minimize its exposure, while trying to operate to its maximum potential. It can be a challenging action to take, most especially because stakeholders are now becoming increasingly aware as technology allows information to be easily accessible.
Asset sustainability directly affects the amount of energy that the company is responsible for procuring and using. We know that this energy creates a volume of greenhouse gas emissions and we know that every effort must be made to curtail this carbon pollution in the face of growing anxiety. If energy is to be treated as a scarce commodity, a different set of metrics must be used to record the sustainability of each asset.
An asset that is procured for a specific purpose and because of its efficiency would typically be measured based on benchmarks for the product or industry. In short, the asset is termed to be operating efficiently and to purpose if it performs as measured by specific parameters. Very rarely is it measured according to its carbon output, or determined to be ultimately sustainable, or not.
Asset sustainability would need a breakthrough in asset design and production. 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.
Coming from an era where assets are expected to perform once installed until replacement is needed, we are moving towards taking asset sustainability as a very critical issue.
by: Daniel Stouffer
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