Lesson 7: Measuring and Reporting Sustainability Performance Flashcards
(18 cards)
What is the most challenging aspect of sustainability reporting for professionals?
Gathering relevant data to measure key indicators and tell the company’s sustainability
What are sustainability metrics?
Quantitative measurements used to assess, compare, and track an organization’s environmental, social, and economic value and shortcomings over time
What does ESG stand for?
Environment, Society, Governance
What are the key qualities of good sustainability metrics?
They should be objective, quantifiable, standardized, and insightful
How should sustainability metrics be selected?
Based on the nature of the business and the specific sustainability issues it impacts
What are Key Performance Indicators (KPIs)?
Metrics used to track strategic or operational sustainability performance, comprised of one or measures
What is the difference between strategic and operational KPIs?
Strategic KPIs track progress over time; operational KPIs monitor daily performance
What is Scope 1 GHG emissions?
Direct emissions from a company’s own operations
What is Scope 2 GHG emissions?
Indirect emissions from purchased products and services
What is Scope 3 GHG emissions?
Emissions from the use of sold products and services and other value chain activities
What kind of data and expertise do sustainability metrics require?
Detailed external data, subject matter expertise, and comprehensive ESG databases
What benefits does stakeholder responsiveness provide?
Credibility, reputational strength, branding advantage, and competitive edge
How does sustainability reporting benefit internal communication?
It boosts employee pride, engagement, collaboration, and adoption of sustainability practices
What are market push and pull drivers?
Push: stock exchanges and regulatory bodies. Pull: investors and ESG surveys
What is the CDP?
A reporting system collecting investor-relevant climate, water, and carbon data via a questionnaire
What is the sector-based approach to science-based targets?
Divides the global carbon budget by sector, allocating emissions reduction targets accordingly
What is the absolute-based approach to science-based targets?
Applies the same percentage emission reduction to all companies regardless of sector
What is the economic-based approach to science-based targets?
Allocates emission responsibility based on a company’s share of global GDP
