The Top 14 Sustainability KPIs Every Business Should Track

Sustainability is more than just a buzzword in today's business environment. As climate change and environmental degradation continue to threaten our planet, organizations are increasingly focusing on their sustainability initiatives. One essential aspect of these initiatives is the ability to measure and assess their progress using Key Performance Indicators (KPIs). KPIs are critical metrics that help businesses gauge their sustainability performance and determine whether they're on track to meet their sustainability goals.

Why KPIs are Essential for Sustainability Initiatives

In the realm of sustainability, KPIs serve as a mirror reflecting a company's commitment towards sustainable development. They allow stakeholders to gauge the success of sustainability strategies and ensure transparency. Moreover, KPIs act as decision-making tools, providing businesses with clear insights on areas needing attention and revealing opportunities for cost savings, waste reduction, and positive impact generation. Furthermore, they provide a framework for benchmarking, allowing companies to measure themselves against competitors and industry standards.

The Top 14 Sustainability KPIs:

1. Carbon Footprint (or GHG Emissions)

Definition: The total amount of greenhouse gas emissions (ghg emissions) attributable to an organization, often broken down into Scope 1, 2, and 3 emissions.
Why it matters: Addressing carbon emissions is essential in combating climate change, a major global concern.
How to collect the data: Through energy consumption records, fuel usage data, and procurement information.
Common 3rd party tools: Carbon Analytics, Ecometrica

2. Energy Consumption and Energy Use

Definition: The amount of energy consumed by an organization.
Why it matters: Energy use directly correlates with emissions and can signal the efficiency of operations.
How to collect the data: Via utility bills, meter readings, and monitoring equipment.
Common 3rd party tools: EnerNOC, Schneider Electric's Energy Management Software

3. Water Consumption and Water Usage

Definition: The total volume of water used by a business.
Why it matters: Conserving water is vital given global water scarcity issues.
How to collect the data: Through water bills and onsite meters.
Common 3rd party tools: Water Footprint Network

4. Recycling Rate

Definition: The percentage of waste that is recycled instead of sent to the landfill.
Why it matters: Promotes a circular economy, reducing environmental impact.
How to collect the data: Waste management records.
Common 3rd party tools: Waste Management's Sustainability Services

5. Supply Chain Sustainability

Definition: Assessing environmental, social, and economic sustainability factors within the supply chain.
Why it matters: Ensures responsible procurement and addresses human rights and ecosystem concerns.
How to collect the data: Supplier questionnaires and scorecards.
Common 3rd party tools: EcoVadis

6. Energy Efficiency

Definition: The ratio of useful output to energy input, indicating how well energy is utilized.
Why it matters: Directly tied to cost savings and emissions reduction.
How to collect the data: Energy audits and monitoring equipment.
Common 3rd party tools: Energy Star Portfolio Manager

7. Waste Reduction

Definition: Decrease in the volume or toxicity of waste generated.
Why it matters: Reduces landfill contributions and promotes environmental sustainability.
How to collect the data: Waste management and recycling records.
Common 3rd party tools: AWARE

8. Renewable Energy Consumption

Definition: The amount of energy sourced from renewable inputs such as wind, solar, or hydro.
Why it matters: Reduces carbon footprint and counters climate change.
How to collect the data: Utility bills and renewable energy certificates.
Common 3rd party tools: RECs

9. ESG (Environmental, Social, and Governance) Metrics

Definition: Metrics measuring a company's environmental sustainability, social impact, and governance practices.
Why it matters: Allows stakeholders to gauge overall sustainability performance.
How to collect the data: ESG questionnaires, audits, and company reports.
Common 3rd party tools: GRI Standards

10. Life Cycle Assessment (LCA)

Definition: Evaluation of the environmental impacts of a product throughout its life cycle.
Why it matters: Provides insights into the overall environmental sustainability of products.
How to collect the data: Product inputs and outputs, supply chain data.
Common 3rd party tools: SimaPro

11. Social Impact Metrics

Definition: Metrics assessing a company's contribution to societal goals.
Why it matters: Gauges a company's commitment to sustainable development and human rights.
How to collect the data: Social impact assessments and stakeholder feedback.
Common 3rd party tools: Impact Management Project

12. Water Efficiency

Definition: Ratio of beneficial output to water usage.
Why it matters: Maximizes the benefits derived from water use, vital given water scarcity.
How to collect the data: Water audits.
Common 3rd party tools: BREEAM

13. SDGs (Sustainable Development Goals) Alignment

Definition: How a company's initiatives align with the UN's SDGs.
Why it matters: Demonstrates commitment to global sustainability objectives.
How to collect the data: SDG reporting and self-assessment.
Common 3rd party tools: SDG Action Manager

14. Stakeholder Engagement Rate

Definition: The degree of stakeholder participation in sustainability initiatives.
Why it matters: Stakeholder buy-in is essential for the success of sustainability initiatives.
How to collect the data: Feedback platforms and engagement metrics on platforms like LinkedIn.
Common 3rd party tools: SurveyMonkey, LinkedIn Analytics

Harnessing the Power of Portable for Your Sustainability KPIs

Portable is an indispensable tool for businesses looking to enhance their sustainability strategy. With its ability to seamlessly pull data from various sustainability-related systems, it offers a comprehensive methodology for organizing and reporting KPIs. With this kind of streamlined approach, businesses can ensure accuracy, save time, and strengthen their commitments to stakeholders.

In Summary: Sustainability KPIs are at the heart of a company's ability to demonstrate their dedication to combatting climate change, upholding human rights, and ensuring environmental and social impact. With Portable, the process of gathering, analyzing, and presenting these important KPIs is made effortlessly efficient.