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Sustainability Performance: The growing global cry to address today’s environmental crisis has conferred new responsibility on businesses, boosting their ability and incentive to take care of the earth. Seventy-five percent or more sustainability professionals polled by Business for Social Responsibility say integrating sustainability objectives into your company will enhance its capacity for addressing destruction at a sustainable rate.

Companies have begun evaluating sustainability performance to do continual assessments, analyze where they stand on the sustainability plan, and create data-driven policies and decisions to accomplish this.

Measuring sustainability as an internal business process is critical to ensuring that your company’s bottom line stays secure. By selecting key metrics and implementing practical improvements, you can have the data needed for strategic decision-making, whether environmental or economic.

What is Sustainability Measurement?

Sustainability measurement is a process of determining how sustainable your company’s actions are. This can be done by measuring their greenhouse gas, climate, and environmental impacts or outcomes attributed to the direct actions within an organization itself and those caused by business operations such as manufacturing processes that occur outside its doors but still have some connection with it through supply chains.

For instance, a clothing and apparel company, for example, will track sustainability metrics such as:

  1. The material effects of the company’s suppliers, supply chain, and labor practices, such as waste, water, and emissions
  2. How raw materials and products are transported from manufacture to shop (or to e-commerce stores) to customers (and post-use destinations such as recycling, upcycling, or consignment stores) to promote total circularity
  3. Individual and community well-being results from its operations, including metrics such as workplace wellness, safety, and health for employees and garment workers, along with more significant trends in neighborhood poverty, homelessness, and economic development based on its organizational footprint.

Purpose of Sustainability Performance: Measurement of Sustainability

To be sustainable, a company must first understand the concept of sustainability. Measuring it and ensuring that you’re transparent about your progress is crucial for your company and others who want this information from their competitors. This way, you can hold them accountable when they aren’t executing on these goals or promises made in business before anything else happens with regard to being environmentally conscious.

Sustainability performance indicators give an inside look into how successful enterprises are at living up to standards set out by society.

Sustainability Performance: Measurement of Sustainability

In a nutshell, sustainable corporate decision-making avoids risks, promotes profitable growth, recognizes the long-term perspective, and responds effectively to a quickly changing world.

Here are the reasons why measuring sustainability performance is so crucial for any organization:

Tracking Progress

The primary purpose of tracking progress is to measure sustainable performance. The essential prerequisite for gauging sustainability is current data. Data that is consistently collected is required to track the progress of various sustainable actions, to highlight where significant progress has been made and where additional efforts are required.

First and foremost, what have you done today, this week, or this month in terms of your sustainability policy? What are your plans for today regarding actual actions that will help us accomplish our sustainability goals? Putting sustainability at the top of your daily priorities will aid you in keeping track of your progress and reaching your objectives as intended.

Gaining Green Growth

The second purpose for assessing sustainability is to achieve green growth. By preparing for any difficulties that may arise in the future, a resilient and regularly measured sustainability action can save the firm from future challenges. That is to say, long-term company strategies that incorporate ESG standards throughout all operations are more likely to confront unexpected societal concerns and shocks.

The Covid-19 pandemic is a recent example of this. It caused quick instability for businesses by disrupting supply chains and marketplaces entirely or partially. Companies performing well before the pandemic experienced fewer negative returns amid the market turmoil. Today’s holistic sustainability initiatives must include resilient supply chains that can respond to global catastrophes, pandemics, and climate change-related extreme weather situations.

Showing Impacts

A company’s sustainability performance measures the effectiveness of its operations in terms of how well they align with sustainable practices. By understanding where you operate and what impacts your business activities have, it will be easier for stakeholders to see that positive changes are happening within an organization as well as external influences such as showcase projects or initiatives which demonstrate good faith toward society-at-large

Companies need to calculate environmentally friendly metrics because leaders know precisely where all aspects of impact sustainability happen throughout every aspect, from production processes downstream to disposal methods; this allows them to promote an internal image amongst employees.

The triple bottom line, in which E is for the environment, S for social, and G for governance, is frequently used to portray impacts. Today, the ESG grouping is the widely used and approved framework for impact investors, banks, funds, enterprises, and a variety of other organizations to point out impacts.

Stakeholder Engagement

So, here’s where things start to get interesting! Companies and organizations that have sustainability embedded into their DNA only have one option for achieving it: ensure that everyone is on board with the aims. Because assessing success is a team effort, everyone must understand and be engaged with the goals. Companies should make their responses to stakeholder expectations and interests clear. This can be accomplished, for instance, by disclosing the sustainability performance regularly and establishing channels for open dialogue with important stakeholders.

You can also check out our other related article Sustainability Becoming Important for Global Corporate Strategy

Communicate Performance

When a corporation communicates openly about its acts, both successes, and failures, it gains more credibility and improves its reputation than when it hides unsuccessful actions. Honesty fosters trust, which in turn encourages stakeholders to participate. Companies may increase their brand value and image by being transparent, accountable, and honest with sustainability communications.

To summarize, the most effective sustainability communications are those in which a corporation can demonstrate genuine progress and benefits using current data. This will not be practicable without a straightforward and understandable sustainability measurement instrument.

How to Measure the Sustainability of an Organization?

All want to do their part in the environment, but sometimes it’s not always possible. You can measure sustainability by making sure that you are looking at how well a company treats its social responsibilities, environmental impact, and economic growth principles when assessing them on an individual level.

Sustainable companies have a positive impact on the world around them. Unlike environmentally harmful businesses, sustainable ones consider not only your environment but also society as well with what they do and how profitable it is for you.

Here are the most crucial sustainability metrics on which it is measured:

Energy Consumption

The most important aspect of sustainability is energy use. Increasing energy efficiency lowers expenses and improves operations overall, all of which increase financial performance. Furthermore, it contributes directly to greenhouse gas emissions and other harmful substances to the environment.

IoT sensors make it easy to track energy usage. IoT sensors constantly monitor your energy use in a dynamic process, providing you real numbers you can use to prove an actual reduction, rather than measuring it at a single point in time. This reduction can subsequently be transferred into environmental benefits such as carbon offsets and reduced air pollution.

Water Usage

The importance of water can’t be overstated. It sustains life every day. Being a fundamental component of everyday usage in most facilities, water is an essential metric for sustainability. Water quality and leaks can be monitored in real-time, which can help to ensure health and safety while also conserving water. In addition, sensors connected to the internet of things can give near-real-time monitoring of consumption and conditions.


This section contains metrics related to your efforts to avoid or decrease pollution and waste whenever possible. For example, are you attempting to reduce waste by redesigning your packaging to incorporate reusable and recyclable materials or by using less packing altogether? Do you recycle a significant part of your trash? Do you purchase materials that have been repurposed from other sources? Are you attempting to include sustainable energy sources into your energy portfolios, such as solar, geothermal, wind, or biofuels? Waste and pollution prevention are essential strategies for any sustainable firm.

Carbon Footprint

Sustainability Performance: Measurement of Sustainability

Fossil fuels are used to generate electricity, and transport people and goods. They are used in cars, trucks, planes, and heat houses and buildings. The release of carbon dioxide and other molecules into the atmosphere due to fossil fuel burning is a crucial contributor to climate change.

One-third of fossil fuel consumption is accounted for by electricity generation, transportation, and heating. However, the high amount of CO2 produced by burning fossil fuels is a big concern when it comes to reducing energy usage and thus greenhouse gas (GHG) emissions. As a result, efforts to enhance energy efficiency by shifting to renewable energy and switching from coal to methane help lower hazardous emissions.

Employee Safety

The importance of occupational safety and health is an ongoing concern for companies. A safe work environment ensures that employees are healthy, but it also protects them from injury or illness while on the job – which means less time off with missed wages. This includes providing a safe work environment that ensures employee health by ensuring they are not exposed to toxic substances or hazardous materials in their place during the production process.

We spend most of our time indoors, so improving environmental conditions should be a top priority. Productivity, time off for health reasons, sick days, and the work environment are significant factors to consider. According to several types of research, there are several advantages to upgrading building conditions.


·         How to measure social sustainability?

The framework for social sustainability measurement includes the following dimensions:

  • Employee participation.
  • Cooperation with co-workers and managers.
  • Equal opportunities to be successful regardless of race or gender identity/expression, or any other personal characteristic.
  • Robust development programs that help employees grow as people both inside their organization but also outside it through education initiatives on topics ranging from financial literacy webpage(s) containing useful information such you can read at home like budgets & savings plans.
  • Health & safety initiatives focus on protecting workers’ personal well-being both inside work hours and outside of them.

●     What does environmental sustainability include?

Environmental sustainability means taking care of our planet’s natural resources and protecting global ecosystems so they can support human health. How do you think this responsibility could be vital for your business?

●     How to Improve Your Corporate Sustainability Performance?

While some businesses have been more vocal about their desire to become more sustainable, many are still unprepared to implement a sustainability program, which can be daunting without a clear plan. To get started and optimize the impact on your supply chain, here is a 5-step method:

  • Establish your sustainability strategy in line with the company’s objectives
  • Involve your procurement function from the developmental stage of the strategy
  • Give your procurement team the skills and resources they need to carry out your sustainable strategy
  • Sort your suppliers into categories based on their potential to affect your sustainability performance
  • Identify risks, measure results, and communicate them


Sustainability measurement is essential for all businesses, large and small. It provides a way to assess how well your company is performing environmentally and socially and can help you identify areas where you need to make changes. There are various ways to measure sustainability, but all methods should consider an organization’s Triple Bottom Line (TBL).

The TBL takes into account three factors when measuring organizational performance: financial, social, and environmental. Measuring sustainability can be complex, but it is critical for organizations that want to operate more sustainably.

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