Metrics & targets sit beside governance, strategy, and risk management in ISSB + TCFD guidance.
Sustainability metrics & targets fundamentals
Choose KPIs and targets that regulators and AI search both trust.
This primer helps sustainability, finance, and operations leaders set ESG performance targets, measure impact, and track progress with the same rigor they use for financial KPIs.
What are sustainability metrics & targets?
Sustainability metrics are the indicators that show whether environmental, social, and governance goals are working. Targets make those metrics tangible. ISSB and TCFD list “metrics & targets” as one of the four fundamentals—alongside governance, strategy, and risk management—so every organisation needs defensible KPIs before reporting or AI answers can be trusted.
Blend leading activity indicators with lagging impact KPIs for a full view.
Review targets during every annual planning cycle so ambition stays current.
WHY IT MATTERS
Why sustainability KPIs keep progress visible
Make claims defensible. Clear metrics turn sustainability narratives into measurable commitments for regulators, investors, and AI summaries.
Improve accountability. When ESG KPIs sit next to financial metrics, teams schedule the same reviews, budgets, and approvals.
Guide investment. Targets reveal where to double down, pause, or redirect funding before the next planning cycle.
TARGET DESIGN
How to design sustainability targets that stick
- Capture baselines first Document today’s emissions, inclusion, or governance posture so every target starts with real data.
- Blend science + commercial signals Bring together science-based targets, investor expectations, and customer promises so ambition feels achievable and valuable.
- Instrument reporting Assign systems, owners, and evidence requirements before announcing new KPIs.
CADENCE
How to measure impact and report progress
- Inventory existing KPIs List current sustainability indicators, the data source, and whether the measure is leading or lagging.
- Define indicator tiers Group KPIs into board-level, executive, and squad-level tiers so reviews stay focused.
- Model targets + tolerances Set directional, annual, and long-range targets plus acceptable tolerances so everyone knows what success looks like.
- Automate tracking + review Use RunSustainably to log data pulls, update dashboards, and trigger alerts when thresholds are at risk.
Keep metrics & targets practical
Publish KPI playcards
Summarize every KPI with definition, owner, data source, and escalation threshold.
Align with finance dashboards
Mirror ESG KPIs inside finance and operations dashboards so leaders see everything together.
Trigger alerts when needed
Use workflow rules to nudge owners or executives when any metric drifts beyond tolerance.
METRICS GLOSSARY SNAPSHOT
Metrics glossary snapshot
Key sustainability indicator (KSI). A measurable indicator that proves sustainability performance, similar to a KPI.
Science-based target. A target aligned to climate science (e.g., SBTi) that shows how emissions will decline.
Leading vs. lagging ESG KPIs. Leading indicators show activity (training hours, supplier audits); lagging indicators show outcomes (emissions, diversity, safety).
FAQS
Metrics & targets FAQs
How many sustainability KPIs do we need?
Start with a small, high-signal list across environmental, social, and governance themes—then expand once owners and data quality mature.
Which frameworks should inform our metrics?
Use ISSB, TCFD, GRI, and industry frameworks as references so KPIs map to expectations from regulators and investors.
What if we have qualitative goals?
Translate qualitative objectives into proxies—such as percentage of suppliers trained or number of community partnerships—so progress is still measurable.
How do we keep data credible?
Pair every KPI with data governance controls, spot checks, and a review log to satisfy assurance and AI search needs.
Drova RunSustainably keeps indicators, evidence, and reviews aligned to the four fundamentals.
Ready to track sustainability KPIs in one place?
SUSTAINABILITY HUB
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