What are the best KPIs to measure the environmental impact of your business?

1 What are KPIs?

KPIs are key performance indicators, which are measurable values that show how well you are achieving your objectives. KPIs can help you monitor and evaluate your progress, identify strengths and weaknesses, and communicate your results to stakeholders. KPIs can be quantitative or qualitative, and they can be applied to different levels and aspects of your business.

2 Why are KPIs important for environmental impact?

KPIs are important for environmental impact because they help you align your business strategy with your sustainability goals. By measuring your environmental performance, you can identify where you can reduce your emissions, waste, energy use, water consumption, and other impacts. You can also benchmark your performance against industry standards, regulations, or best practices, and demonstrate your commitment to social responsibility and environmental stewardship.

4 How to use KPIs for environmental impact?

To use KPIs for environmental impact, you need to collect and analyze data, report and communicate your results, and review and improve your performance. You can use various tools and methods to gather and process data, such as surveys, audits, sensors, meters, or software. You can also use dashboards, graphs, charts, or reports to visualize and share your data with your team, customers, investors, or regulators. Finally, you can use your data to evaluate your performance, identify gaps and opportunities, and adjust your actions and goals accordingly.

5 What are some examples of KPIs for environmental impact?

When it comes to environmental impact, there are various KPIs to consider depending on your industry, scope, and objectives. These could include carbon footprint – the amount of greenhouse gas emissions generated by your activities, products, or services – as well as waste generation, energy efficiency, water efficiency, and environmental compliance. The latter refers to the degree to which you meet or exceed the legal or voluntary standards and requirements for environmental protection.

6 How to set SMART goals for environmental KPIs?

When setting SMART goals for environmental KPIs, you should ensure that they are specific, measurable, achievable, relevant, and time-bound. For instance, a SMART goal for reducing your carbon footprint could be to reduce emissions by 20% by 2025 compared to 2020 levels through energy-saving measures and switching to renewable sources. This goal is specific (defining what you want to achieve and how), measurable (quantifying desired outcome and tracking progress), achievable (ensuring it is realistic and attainable with resources and capabilities), relevant (aligning with business strategy and sustainability vision), and time-bound (setting a deadline or timeframe).

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?