What are the best ways to align KPIs for sustainability and social responsibility?

1 Define your purpose and vision

The first step to align KPIs for sustainability and social responsibility is to define your purpose and vision as a business. What are your values, mission, and goals? How do they relate to the needs and expectations of your customers, employees, partners, and society at large? How do you want to contribute to the global challenges of climate change, inequality, human rights, and ethical conduct? By clarifying your purpose and vision, you can identify the areas where you can make the most positive impact and create value for your business and stakeholders.

2 Choose relevant and meaningful KPIs

The next step is to choose KPIs that are relevant and meaningful for your sustainability and social responsibility objectives. You can use frameworks and standards such as the Global Reporting Initiative (GRI), the Sustainability Accounting Standards Board (SASB), or the United Nations Sustainable Development Goals (SDGs) to guide you in selecting the appropriate indicators. You should also consider the materiality, feasibility, and comparability of the KPIs, and how they link to your financial and operational performance. For example, you can use KPIs such as carbon footprint, employee engagement, customer satisfaction, diversity and inclusion, or social impact.

3 Align KPIs with your strategy and culture

The third step is to align your KPIs with your strategy and culture. You should ensure that your KPIs are aligned with your vision, values, and goals, and that they support your strategic priorities and initiatives. You should also embed your KPIs in your culture, by communicating them clearly and consistently, involving your stakeholders in the process, and rewarding and recognizing good performance. By aligning your KPIs with your strategy and culture, you can create a shared sense of purpose, direction, and accountability, and foster a culture of sustainability and social responsibility.

5 Review and refine your KPIs

The fifth step is to review and refine your KPIs. You should evaluate your KPIs regularly, and use the feedback and insights from your data and stakeholders to identify the gaps, opportunities, and risks. You should also adapt your KPIs to the changing context and expectations, and to the emerging trends and best practices. For example, you can use benchmarks, surveys, or audits to assess your performance and compare it with your peers or standards. By reviewing and refining your KPIs, you can ensure that they are relevant and meaningful, and that they drive continuous improvement and innovation.

6 Engage and inspire your stakeholders

The sixth and final step is to engage and inspire your stakeholders. You should involve your stakeholders in the design, implementation, and evaluation of your KPIs, and solicit their feedback and input. You should also share your stories and successes, and celebrate your achievements and learnings. For example, you can use social media, events, or awards to showcase your impact and value, and to inspire others to join you in your sustainability and social responsibility journey. By engaging and inspiring your stakeholders, you can create a sense of ownership, collaboration, and commitment, and amplify your positive influence and reputation.

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?