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Sustainability indicators, or ESG KPIs, are metrics that quantify a company's environmental, social and governance performance. The most widely used are Scope 1, 2 and 3 emissions, energy consumption, share of renewables, water withdrawal, waste and recovery rate, workplace accident frequency and the gender pay gap. Each has its own data source and its own realistic update frequency.
What are sustainability KPIs?
A sustainability KPI is an indicator tied to an objective, with a closed definition, a unit of measurement, an identified data source and an owner. Without those four elements it is not a KPI, it is a loose number.
Its purpose is threefold: turning commitments into comparable data, spotting deviations before they become irreversible, and underpinning a sustainability report that survives external assurance.
Which sustainability KPIs should a company measure?
This is the set of indicators almost every company ends up needing, with its definition, unit, where the data comes from and how often it can genuinely be updated.
| Indicator | Definition | Unit | Data source | Realistic frequency |
|---|---|---|---|---|
| Scope 1 emissions | GHG from owned or controlled sources: stationary combustion, own fleet and refrigerant leaks | tCO2e | Natural gas and diesel invoices, fuel cards, HVAC maintenance records | Monthly |
| Scope 2 emissions | GHG from purchased energy: electricity, heat, cooling and steam | tCO2e, market based and location based | Electricity invoices per supply point, half-hourly curve from the grid operator, guarantees of origin | Monthly, daily with telemetry |
| Scope 3 emissions | GHG across the value chain, split into the fifteen GHG Protocol categories | tCO2e | ERP purchasing data, supplier questionnaires, transport and travel data | Quarterly with spend data, annual with primary supplier data |
| Carbon intensity | Emissions per unit of economic or physical activity | tCO2e per million euros of turnover, or per unit produced | Footprint calculation cross-referenced with accounting or production | Quarterly |
| Total energy consumption | Final energy consumed across all sources | MWh or GJ | Invoices, own meters, plant telemetry | Monthly, hourly with telemetry |
| Share of renewable energy | Renewable energy as a percentage of total consumption | % | Guarantees of origin, PPA contracts, on-site generation | Quarterly, because guarantees of origin are redeemed with a lag |
| Water withdrawal | Volume of water withdrawn, broken down by source and by local water stress | m3 | Utility invoices, borehole meters, discharge permits | Monthly |
| Waste generated and recovery rate | Waste by European Waste Catalogue code and share sent to recovery versus disposal | tonnes and % | Waste transfer documents and certificates from the authorised waste manager | Per collection, consolidated monthly |
| Accident frequency rate | Lost-time accidents per million hours worked | accidents per million hours | Occupational health records and sick leave reports | Monthly |
| Gender pay gap | Difference between average male and female pay, as a share of male pay | % | Payroll and pay register | Annual, half-yearly at most |
| Employee turnover | Voluntary leavers over average headcount for the period | % | HR system | Quarterly |
| Procurement spend with ESG screening | Share of supplier spend that has passed an ESG criteria assessment | % of spend | Procurement ERP and supplier qualification platform | Quarterly |
| Ethics and anti-corruption training | Share of the workforce that has completed the mandatory training for the period | % | Internal learning platform | Half-yearly |
Can you get sustainability reports in real time?
Partly yes, and it pays to be precise about what real time means. It is realistic to keep electricity consumption, fleet activity and waste generation almost instantly up to date, because they already sit in connected systems. It is not realistic to have supplier Scope 3 or most social indicators in real time, because they depend on third parties and periodic closes.
The useful way to frame it is by latency tier:
- Continuous or daily: electricity with telemetry or interval data, on-site generation, fleet mileage and fuel via telematics, production volumes.
- Monthly: full Scope 1 and 2, water, waste, accident rates. This is the frequency most companies reach once invoice capture is automated.
- Quarterly: spend-based Scope 3, carbon intensity, supplier ESG screening.
- Annual: Scope 3 with primary supplier data, gender pay gap, double materiality assessment.
An honest dashboard always shows the date of the latest data point for each indicator and distinguishes measured from estimated data. That is what separates a useful panel from one nobody believes. We go into detail in our article on real-time carbon footprint data.
What does it take for KPIs to update themselves?
Three conditions, in this order. First, a data source connected by API or automated reading of incoming documents (invoices, delivery notes, waste manager certificates). Second, a stable mapping between that source and the indicator, with the emission factor versioned. Third, a named owner per source who resolves incidents.
Without the third condition the system stalls at the first invoice with a new layout. The full sequence is in our guide on how to automate ESG reporting.
Which KPIs does regulatory reporting require in 2026?
KPIs are no longer just an internal tool: they underpin obligations. The CSRD and the ESRS require companies to disclose specific indicators under the principle of double materiality, which combines the company's impact on the environment with the effect of ESG factors on its financial position.
On 3 July 2026 the European Commission adopted the delegated act with the simplified ESRS: ESRS 1, ESRS 2 and ten topical standards remain, while more than 60% of mandatory datapoints and more than 70% of total datapoints are cut, applying to financial years starting on or after 1 January 2027. Earlier, Directive (EU) 2026/470 had narrowed CSRD scope to companies with more than 1,000 employees and more than 450 million euros in net turnover. You can see the detail in our guide to the Omnibus package and in the comparison CSRD and ESRS: differences and similarities.
The practical reading is simple: there are fewer fields to fill in, but the ones that remain are more quantitative and demand the same traceability. Measuring fewer indicators and measuring them well is the right strategy.
How do you choose the right KPIs?
- Sector: an energy-intensive manufacturer and a consultancy do not share material indicators.
- Strategic objectives: if the goal is cutting energy cost, the KPI is intensity per unit produced, not absolute tonnes.
- Third-party expectations: investors, large customers, public tenders and banks ask for specific indicators, usually a verified carbon footprint.
- Materiality: the double materiality assessment decides what gets measured rigorously and what is left out with justification.
- Data availability: a KPI you cannot feed systematically is not a KPI, it is an intention.
How to implement a KPI system step by step
- Define measurable objectives with a time horizon, not generic statements.
- Close the spec sheet for each indicator: definition, unit, formula, source, owner and frequency.
- Fix the base year and the boundary before the first measurement, and document it.
- Connect the data sources, starting with those already digitised.
- Set a target per indicator with concrete values and periodic review.
- Publish and verify: report with evidence attached and prepare the ground for the external assurer.
Common mistakes when defining sustainability KPIs
- Measuring dozens of indicators and using none of them to make a decision.
- Changing the definition or the emission factor mid-series and losing comparability with the base year.
- Mixing measured and estimated data without flagging it.
- Reporting only absolute values, which rise and fall with activity, without any intensity indicator.
- Leaving KPIs without a named owner, which stop being updated by the second quarter.
Frequently asked questions about sustainability KPIs
What is the difference between an indicator and a KPI?
Every KPI is an indicator, but not every indicator is a KPI. A KPI is tied directly to a strategic objective and has an owner, which is why its tracking is prioritised.
How many sustainability KPIs should a company have?
There is no fixed number, but a set of ten to fifteen material, well-fed indicators works better than a list of fifty that nobody uses to decide anything.
Which environmental KPI is the most common?
The carbon footprint. It is required by multiple frameworks, allows comparison between companies and over time, and is the figure large customers and public tenders ask for. You can see how it is calculated in our guide to the carbon footprint.
How often should ESG KPIs be updated?
It depends on the source. Energy and fleet allow daily or monthly updates, supplier Scope 3 is quarterly or annual, and social indicators are usually closed once a year. Forcing a frequency the source cannot support only produces estimated figures.
Do you need verified KPIs to bid for public tenders?
Increasingly yes, especially the carbon footprint. A calculation aligned with the GHG Protocol or ISO 14064, with traceable evidence, is what supports that requirement.
At Manglai we measure and manage these indicators with traceable, assurance-ready data, connecting invoices, ERP systems and supplier data in a single system. If you want to start with emissions, the entry point is our carbon footprint solution.
