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.

Sustainable Supply Chains

Highlighting the immense potential of sustainable supply chains, Odebode said: “This dilemma raises important questions about prioritising profit over the well-being of the environment and human capital when positioning organisations as enablers of sustainability. Innovative approaches to investment and operational management, supported by an agile organisational culture, empower employees to enhance growth opportunities. It is crucial to align offerings with the United Nations’ sustainable development goals for 2030.”

Odebode who studied environmental ethics at the University of Lagos and green business management at San Francisco Bay University in California, United States, added that to effectively measure profitability and efficiency, organisations must assess sustainability impact through Environmental, Social, and Governance (ESG) metrics. Supply chain management plays a critical role in achieving sustainability objectives, he said. According to him, considering the environmental impact in decision-making and implementation reduces waste, energy consumption, and carbon emissions, fostering reliability, transparency, cost savings, customer retention, and competitive advantage.

He cited Ernst and Young, which had emphasised the importance of the supply chain, as it contributes over 90 per cent of an organisation’s greenhouse gas 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.