This is where ESG indicators come into play.
In a business environment where being profitable is no longer enough, sustainability has become a key competitive factor. Investors, customers and employees increasingly value companies’ real commitment to the environment, society and governance. But how can this be demonstrated with concrete data?
Measuring sustainability performance is no longer an option. It is a strategic necessity for any organization that wants to grow with positive impact and maintain its reputation over the long term.
What are ESG indicators?
ESG indicators are metrics that allow us to evaluate a company’s performance in three key areas:
- E (Environmental): environmental impact.
- S (Social): commitment to society and people’s well-being.
- G (Governance): quality and transparency in corporate management.
These indicators enable organizations to clearly communicate their sustainability progress and facilitate internal and external decision making. In fact, many companies are including this data in their annual reports or non-financial reporting strategies.
Why are ESG indicators important?
- Transparency and trust
Publishing ESG indicators improves transparency and generates trust among stakeholders: customers, investors, regulators and employees. - Attracting sustainable investment
Many funds and banks already prioritize companies with good ESG performance. Having clear and verifiable indicators can open new doors to financing. - Compliance
More and more countries and regions are requiring sustainability reporting. Measuring ESG indicators systematically helps to comply with current and future regulations. - Data-driven decision making
Indicators allow you to understand what is working, where there are gaps and what actions need to be taken to continuously improve.
Key ESG indicators to get started
Environmental indicators (E)
- CO₂ emissions and carbon footprint.
- Total energy consumption and from renewable sources
- Water use and management
- Waste generation and treatment
- Impact on biodiversity
Social indicators (S)
- Diversity and inclusion in the workforce
- Equal pay
- Occupational accident rate
- Wellness and mental health programs
- Relationship with local communities
Governance indicators (G)
- Number of women on the board of directors
- Code of ethics and anti-corruption policies
- Fiscal transparency
- Shareholder participation in key decisions
- Regulatory compliance and external audits
How to start measuring ESG indicators?
You don’t need to have all the data from day one. The most important thing is to establish a realistic roadmap and start with the indicators that are most relevant to your industry and context. Here are some initial steps:
- Identify which indicators you are already measuring. Often, the prevention, HR or environmental area already has useful data.
- Define concrete goals and objectives. What do you want to improve? In what time frame?
- Choose a suitable tool. Measuring manually may be feasible at first, but to scale you will need to digitize the management of these indicators.
- Involve key areas. ESG is not the responsibility of a single department: it requires collaboration between teams.
- Report and continuously improve. ESG indicators should help you make decisions and demonstrate your progress, not just comply with formalities.
The future is sustainable… and measurable
Incorporating ESG indicators in the management of your company is not only a good practice: it is a clear sign of responsible leadership. Organizations that anticipate, measure and act based on ESG criteria are better prepared to adapt, attract investment, retain talent and generate positive impact.
Start today. Because what you don’t measure, you don’t improve. And what is improved… transforms. If you are looking for a technological solution to manage your ESG indicators with rigor, efficiency and a vision of the future, discover what Prodity offers Prodity..
