Measuring Sustainability KPIs for Businesses

Measuring sustainability Key Performance Indicators (KPIs) is more than just a trend; it is a crucial strategy for businesses committed to long-term environmental success. While conventional KPIs have long been part of a business’s performance evaluation, the focus on sustainability KPIs, encompassing environmental, social, and governance metrics has become increasingly prioritised.

Why should businesses measure sustainability KPIs?

Competitive advantage: Businesses prioritising sustainability often gain a competitive edge, attracting environmentally conscious consumers, investors, and partners. Compliance and regulation: Governments worldwide are tightening sustainability-related regulations; tracking KPIs ensures compliance and avoids fines. Risk mitigation and efficiency: Monitoring KPIs can pinpoint areas of risk and signal inefficiencies that reduce costs. Transparency: Tracking KPIs is an opportunity to communicate sustainability efforts to stakeholders and the public. Monitoring progress: KPIs allow organisations to track their journey towards sustainability goals.

Carbon emissions

Carbon emissions are one of the most well-known environmental metrics. They can be tracked by calculating a company’s carbon footprint (GHG emissions across Scopes 1, 2, and 3), measuring carbon intensity (emissions per unit of output), and setting sustainability targets grounded in climate science.

Energy consumption

Track total energy usage, energy intensity (consumption per unit or activity), and renewable energy use. Organisations can use utility bills, meter readings, or energy management systems like ISO 50001.

Water usage

Understanding water usage involves measuring total water consumption, water intensity, and water recycling/reclamation systems. These metrics collectively gauge efficiency, a critical component for sustainable water management.

Waste generation

Track total waste produced, waste diversion rate (percentage diverted from landfill via recycling, composting), and hazardous waste management. A comprehensive audit across operational areas is essential.

Supply chain environmental impact

Assess supplier environmental performance through resource usage, emissions, waste management, and social responsibility. Conduct Life Cycle Analyses of specific products to scrutinise emissions at every stage from raw material extraction to disposal. Tracking sustainability KPIs is pivotal in reducing an organisation’s environmental impact and provides a roadmap for progress.