10 common sustainability metrics and KPIs
If you're new to the area of sustainability and wondering what to start focusing efforts on, this brief overview of 10 common sustainability metrics and KPIs can give you an idea. This list draws inspiration from major global sustainability frameworks and sustainability reports by leading multinationals, providing a glimpse into the diverse aspects that sustainability encompasses.
Greenhouse gas (GHG) emissions
Goal: Reduction of GHG emissions, setting emission intensity ratios, and achieving net-zero emissions targets.
Action: Companies report on their GHG emissions by scope, share emission reduction strategies, and disclose progress toward targets.
Example: "In 2022, our company reduced Scope 1 and Scope 2 GHG emissions by 20%, aligning with our target to achieve net-zero emissions by 2030."
Energy consumption
Goal: Improving energy efficiency and reducing total energy consumption.
Action: Organisations share data on energy consumption, efforts to increase energy efficiency, and energy-saving initiatives.
Example: "Our energy conservation efforts resulted in a 15% reduction in total energy consumption across all our operations in the past year."
Renewable energy usage
Goal: Increasing the proportion of energy sourced from renewable sources.
Action: Companies disclose the percentage of energy obtained from renewables and outline strategies for further renewable energy adoption.
Example: "We successfully increased our renewable energy consumption to 40% of total energy use in 2022, contributing to our commitment to sustainable operations."
Water usage
Goal: Efficient water management, reducing water consumption, and water-use efficiency targets.
Action: Organisations report on total water consumption, water-saving measures, and progress in achieving water-use efficiency goals.
Example: "Through water recycling initiatives and improved water management, we achieved a 25% reduction in water consumption compared to the previous year."
Waste generation and recycling
Goal: Diverting waste from landfills, recycling rates, and waste reduction initiatives.
Action: Companies disclose waste generation data, recycling rates, and initiatives to minimise waste sent to landfills.
Example: "Our recycling efforts led to diverting 80% of waste from landfills, underscoring our commitment to circular economy principles."
Diversity and inclusion
Goal: Increasing diversity in the workforce and achieving gender parity in leadership positions.
Action: Organisations share data on workforce diversity, representation in leadership roles, and initiatives promoting inclusion.
Example: "We have set a target to achieve gender parity in leadership positions by 2025, with women currently comprising 45% of our executive team."
Employee health and safety
Goal: Ensuring a safe work environment and reducing injury rates.
Action: Companies report on health and safety performance, workplace safety programs, and measures to enhance employee well-being.
Example: "Our Lost Time Injury Frequency Rate (LTIFR) decreased by 30% in 2022, reflecting our continuous focus on employee safety and well-being."
Supplier sustainability
Goal: Assessing and promoting sustainability practices among suppliers.
Action: Organisations outline supplier engagement efforts, sustainability criteria for supplier selection, and progress in supplier sustainability assessments.
Example: "As part of our supplier sustainability program, we conducted 100% of supplier assessments, and 75% of our key suppliers are now aligned with our sustainability criteria."
Ethical business practices
Goal: Implementing anti-corruption measures and promoting ethical behaviour.
Action: Companies disclose anti-corruption programs, compliance measures, and instances of corruption prevention.
Example: "We implemented a robust anti-corruption compliance program, and no incidents of corruption were reported in the past two years."
Sustainable product/service offerings
Goal: Developing and promoting sustainable products and services.
Action: Organisations report on sustainable product development, life cycle assessments, and certifications for eco-friendly products.
Example: "Our latest eco-friendly product line received third-party certifications for its reduced environmental impact throughout its life cycle."
Conclusion
The list offers a concise overview of what companies typically disclose in sustainability reports. Each milestone on the way to achieving any of the above targets can also be celebrated through dedicated communications campaigns, to demonstrate genuine ongoing commitment to sustainability. While I tried to generalise some common practices, it's important to note that sustainability metrics and KPIs may vary based on local reporting standards, industry requirements, and other criteria.
