How can a company measure its sustainability performance?

A company can effectively measure its sustainability performance by employing key performance indicators (KPIs) specifically related to sustainability. These KPIs are metrics that provide quantifiable measurements to evaluate how well the company is performing against sustainability goals. Examples of sustainability KPIs could include carbon footprint, energy consumption per unit of product, water usage, waste management efficiency, and social and community impact. By focusing on these indicators, a company can obtain a clear and comprehensive view of its environmental and social impact, which is essential for making informed decisions and driving improvements in sustainability practices.

Measuring sustainability through customer satisfaction, profit margins, or employee turnover does not provide a direct assessment of a company's environmental or social responsibilities. While these aspects are important for overall business performance, they do not specifically gauge sustainability outcomes or initiatives. Therefore, utilizing sustainability-related KPIs is the most accurate and relevant approach to measuring a company's sustainability performance.