Sustainability isn’t just a buzzword—it’s becoming a key factor in business success.
While some companies are required to comply with ESG (Environmental, Social, and Governance) standards, many others are choosing to track ESG performance voluntarily.
Why? Because integrating ESG metrics can provide significant strategic benefits.
Whether preparing for potential future regulations, enhancing corporate reputation, attracting investors, managing risks, or improving operational efficiency, tracking the right ESG Key Performance Indicators (KPIs) can be a game-changer.
This guide is designed for businesses that want to take control of their ESG impact—whether to future-proof their operations, strengthen stakeholder relationships, or gain a competitive edge. Even if your company isn’t currently required to follow ESG frameworks like GRI or ESRS, tracking the right ESG Key Performance Indicators (KPIs) can provide valuable insights and long-term benefits.
Below, we outline 25 essential ESG KPIs to help you measure, assess, and enhance your sustainability performance.
Environmental KPIs (E)
1. Carbon Footprint (CO₂ Emissions)
This measures the total amount of greenhouse gases your company produces, typically reported in metric tons of CO₂ equivalent.
Lowering carbon emissions is a major priority in facing climate change, and businesses are expected to track and reduce their footprint through energy efficiency, carbon offset programs, or the adoption of renewable energy.
2. Energy Consumption
Energy use is one of the biggest contributors to an organization’s environmental impact. This KPI tracks how much electricity, gas, and other fuels are consumed, helping businesses identify areas where they can cut back on waste and increase efficiency.
3. Renewable Energy Usage (%)
Consumers and investors favor businesses that use clean energy. This metric shows what percentage of a company’s total energy consumption comes from renewable sources such as wind, solar, or hydro power. A higher percentage indicates stronger sustainability commitments.
4. Water Usage Efficiency
Water scarcity is a growing issue worldwide. Companies that track their water consumption per unit of production can find ways to minimize waste, implement recycling systems, and reduce their environmental impact.
5. Waste Generation & Recycling Rate
Waste management is a crucial environmental concern. This ESG KPI tracks both the total waste generated by a business and the percentage of that waste that is recycled or repurposed. Companies with high recycling rates demonstrate a commitment to a circular economy.
6. Air Pollution & Emission Reductions
Beyond carbon emissions, businesses also release pollutants such as nitrogen oxides (NOx), sulfur oxides (SOx), and particulate matter. Tracking and reducing these emissions is critical for regulatory compliance and protecting public health.
7. Biodiversity Impact
Companies in industries like agriculture, real estate development, and resource extraction must monitor their impact on biodiversity. This KPI measures efforts to protect ecosystems, reduce deforestation, and support conservation initiatives.
8. Supply Chain Sustainability
Your suppliers’ environmental impact matters just as much as your own. Businesses are increasingly tracking the sustainability practices of their supply chain partners to ensure responsible sourcing and ethical operations.
9. Deforestation & Land Use
This KPI measures how much land is being cleared for business operations and whether reforestation or conservation efforts are in place. Reducing land degradation helps protect wildlife habitats and supports climate stability.
10. Sustainable Product Development
More consumers are demanding eco-friendly products. This metric tracks the percentage of a company’s product line that meets sustainable criteria, such as recyclability, biodegradability, or reduced carbon footprint.
Social KPIs (S)
11. Employee Diversity & Inclusion
A diverse workforce fosters innovation and inclusivity. This KPI measures the representation of different genders, ethnicities, and underrepresented groups within an organization, ensuring fair hiring practices.
12. Employee Turnover Rate
A high turnover rate can indicate dissatisfaction, poor working conditions, or a lack of career growth opportunities. This KPI helps businesses gauge employee retention and make improvements where needed.
13. Workplace Safety & Lost Time Injury Rate
Employee well-being is critical. This KPI measures workplace injuries and the number of lost workdays due to accidents, helping companies improve safety protocols.
14. Fair Wages & Pay Equity
This metric track whether employees are being compensated regardless of gender, ethnicity, or role. Companies that promote pay equity build stronger, more loyal workforces.
15. Training & Development Hours
Investing in employees’ growth leads to higher engagement and better performance. This KPI tracks the average hours spent on professional training per employee.
16. Employee Engagement & Satisfaction
Happy employees are more productive and committed to company goals. This KPI is often measured through surveys that assess job satisfaction and workplace culture.
17. Community Investment & Philanthropy
Companies that give back to society build stronger reputations. This KPI measures donations, volunteer programs, and community-focused initiatives.
18. Customer Satisfaction Score (CSAT)
Customer loyalty is a strong indicator of business success. This KPI measures how satisfied customers are with a company’s products, services, and ethical practices.
19. Product Safety & Compliance
Ensuring that products meet safety regulations is essential. This KPI tracks product recalls, safety incidents, and compliance with industry standards.
20. Human Rights & Ethical Supply Chain
This metric evaluates labor conditions in the supply chain, ensuring no child labor, forced labor, or unsafe working environments exist.
Governance KPIs (G)
21. Board Diversity (%)
Diverse leadership teams bring different perspectives and improve decision-making. This KPI tracks the percentage of leadership positions held by women, minorities, and other underrepresented groups.
22. Executive Compensation Linked to ESG
Companies that tie executive bonuses to ESG goals are more likely to make real progress in sustainability. This KPI tracks whether ESG performance influences top-level pay.
23. Anti-Corruption & Ethics Violations
Trust is crucial in business. This KPI measures instances of fraud, bribery, and other unethical behaviors, helping organizations strengthen internal controls.
24. Data Privacy & Cybersecurity Incidents
With data breaches on the rise, protecting customer and company data is a top priority. This KPI tracks incidents of cyberattacks and data leaks, pushing businesses to improve security measures.
25. ESG Compliance & Reporting Transparency
Companies need to show they are serious about ESG commitments. This KPI measures adherence to global sustainability standards (e.g., GRI, SASB, TCFD) and the transparency of ESG disclosures.
Conclusion
Tracking these ESG key performance indicators isn’t just about meeting regulatory requirements—it’s about building a more sustainable, responsible, and ethical business.
By integrating these ESG performance metrics into an ESG KPI dashboard, organizations can identify areas for improvement, reduce risks, and create long-term value for stakeholders.
Whether you're just beginning your ESG journey or refining an existing strategy, these KPIs provide a clear roadmap for meaningful impact.
The future of business is sustainable—are you ready to lead the way?
