Global benchmarking for monitoring environmental, economic, and social performance for metallurgical production enterprises

Abstract

The development of the ideology of sustainable development stimulated the emergence of companies’ Performance Management Systems with an emphasis on the environmental aspects of their activities. Benchmarking, as a modern management tool, is often used for competitive analysis and setting development goals. This study’s scientific problem is to assess the feasibility of applying benchmarking studies to assess the global industry’s environmental aspects. The purpose of the study is to identify the prerequisites for using benchmarking to improve environmental performance, as well as to identify best practices among world-leading companies. For benchmarking, a logical information model is proposed in the study. On its basis, eight world leaders were selected, trends in the industry’s development were analysed, and reference values of environmental indicators were established. For environmental performance assessment, it is proposed to use such indicators as greenhouse gas emissions, energy consumption, material efficiency, environmental management systems. Comparative benchmarking analysis of world leaders and 16 largest Ukrainian companies allowed determining the reserves for increasing environmental performance. The directions for increasing environmental performance are Investment in resource-saving technologies, production of higher value-added products, investments in energy-saving and new technologies, improvement of management systems, and certification. These ideas are complemented by recommendations for improving environmental performance, based on the Circular Economy Concept’s philosophy and Industry 4.0. The study’s practical significance is that Ukrainian companies can use their results to achieve higher environmental and economic outcomes.