ESG KPIs? some good basic examples

ESG Key Performance Indicators (KPIs) are quantifiable metrics used by organizations to measure and communicate their performance on environmental, social, and governance priorities.

These indicators help companies monitor progress toward sustainability goals, identify risk areas, and demonstrate transparency to regulators, investors, and stakeholders.

Common ESG KPIs include environmental measures such as greenhouse gas emissions, renewable energy use, and waste recycling; social metrics like workforce diversity, employee safety, and human rights compliance; and governance indicators related to board structure, ethical conduct, and data protection.

Together, these KPIs provide a structured way to evaluate how responsibly and sustainably an organization operates.

ESG KPIs are essential tools that allow organizations to track and demonstrate their environmental, social, and governance performance in a measurable and transparent way.

*also good for the important trend analysis and comparison within the same industrtial sector.

The following ESG KPIs represent widely accepted best practices suitable across sectors, aligning with global standards such as CSRD, GRI, SASB, and TCFD.

Environmental KPIs

• Total greenhouse gas emissions (Scopes 1, 2, and 3)

• Renewable energy share (%) in total energy consumption

• Carbon intensity (emissions per unit of revenue or output)

• Water intensity (water consumed per unit of production)

• Waste recycled (%) versus waste sent to landfill

Social KPIs

• Workplace gender diversity (% women in management and total workforce)

• Employee turnover rate (%)

• Lost Time Injury Frequency Rate (LTIFR)

• Average annual training hours per employee

• Human rights compliance incidents reported/resolved

Governance KPIs

• Board independence (% of independent directors)

• Board diversity (gender, age, skills mix)

• Anti‑corruption and ethics training completion rate (%)

• Number of data privacy or cybersecurity breaches

• Executive compensation linked to ESG performance (%)

References & additional readings

1. https://en-rules.hkex.com.hk/rulebook/appendix-c2-environmental-social-and-governance-reporting-code-0

2. https://www.hkex.com.hk/-/media/HKEX-Market/Listing/Rules-and-Guidance/Environmental-Social-and-Governance/Exchanges-guidance-materials-on-ESG/app2_envirokpis_c.pdf

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