8. Measuring Impact Beyond Profit

Non-financial metrics are growing in importance and should matter as much as financial ones. Comprehensive sustainability targets track the company’s most important impacts across the value chain. Bold targets that stretch and challenge the organization are vital: it’s not just about looking good; it’s about making a difference. At a minimum, targets should be relevant to the business, quantifiable, and fact-based. In the area of climate, science-based targets are the gold standard. Learn how to distinguish a strong key performance indicator (KPI) from a weak one and how to anchor sustainability metrics by connecting them to the core business and normal performance reporting, with clear lines of responsibility and accountability. We look at how strong metrics can help sustainable companies to outperform their peers. A focus on energy efficiency and energy labeling has made global appliance company Electrolux’s Green Range of products (those with the best environmental performance) also the most profitable.