How do you measure, improve, and communicate your company’s sustainability performance?

When collecting data on your company's existing performance, it is crucial to consider the entire life cycle of the goods and services provided; this includes metrics of

The upstream activities of your goods and services, such as  

• Raw Material Extraction,
• Raw Material Processing,
• Material Production,
• Finished Product Assembly.

Your company's activities at its facilities, including its 

• Offices, 
• Retail spaces, 
• Company vehicles, 
• Employee commutes, 
• Business travel.

And the downstream activities associated with your goods and services, including

• Transportation and distribution,
• Consumer Use,
• End of Lifecycle treatment and disposal of sold products.  

While this may seem daunting, you can start with your company's largest supplier and determine your share of responsibility in each stage.

A systematic analysis of the environmental, social, and economic metrics will give you an accurate view of the existing risks and opportunities and help you set goals around your quantitative findings.    

The sustainability journey has no finish line; however, developing time-bound goals guides success. Your company's Sustainability Report or Corporate Social Responsibility (CSR) Report publishes these goals and makes them available to employees, customers, shareholders, investors, suppliers, and competitors; therefore, it is crucial to make these goals achievable.  

While using SMART goals (Specific, Measurable, Attainable, Relevant, and Time-bound) is recommended, the goals must also be scientific and align with the company's core business values. Multiple frameworks outline how businesses should set scientific goals to serve the climate crisis best.

The presiding framework is the United Nations Sustainable Development Goals (SGD) which outline 17 Goals that define the action that all countries must take to improve health and education, reduce inequality, spur economic growth, tackle climate change and preserve oceans and forests. The UN Global Compact provides a platform for businesses to engage with stakeholders from Government, the UN, civil society, and communities to support the SGD. Another framework is the Science Based Target Initiative (SBTi), which "drives ambitious climate action in the private sector by enabling organizations to set science-based emissions reduction targets."

The correct framework again depends on the industry or sector of the company and the company's mission, ambition, and capabilities.  

Some examples of high-level sustainability goals from well know brands:

"Avoid one billion metric tons (a gigaton) of greenhouse gases from the global value chain by 2030." —Walmart.

"Our goals are ambitious – we aim to achieve net zero emissions by 2050 and make all our packaging reusable or recyclable by 2025, and we're investing more than $3 billion globally over the next few years to accelerate our work." - Nestlé.

"Achieve 100% renewable electricity globally by 2030, with an interim target of 75% by 2025." - Ball.

After investing in in-depth sustainability analysis and setting sustainability goals, it would be a disregard to use "sustainability" as a buzzword versus a business strategy. Thus, it will be necessary to develop an internal framework that clearly defines, and holds accountable, the business sustainability goals with concrete actions.  There are various ways a company can do this; the CSR report and ESG assessment provide a foundation for companies to uphold, improve, and report their sustainability goals.    

1. Corporate Social Responsibility (CSR) 

A CSR is a business model for companies that define their internal processes and culture and helps them report their sustainability efforts to themselves, stakeholder, and the public. A CSR is about building accountability and encompasses the activities the company undertakes to achieve a more significant global impact and reach its sustainability goals.  

2. Environmental Social Governance (ESG) 

An ESG assessment measures sustainability and is popular with investors.  Financial performance is the critical purpose of an ESG valuation.  It focuses on quantifying the existing accountability of a company's sustainability performance and has become a set of criteria for sustainability assessments.  

The corporate nature of the company, the industry within which it conducts business, and its mission, ambition, and capabilities determine the reporting framework of its overall accountability strategy.