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# Optional ESG KPIs and Reporting Readiness

As your organisation matures in its ESG approach, the ability to **track, analyse, and report performance using key indicators** becomes increasingly valuable. This page introduces a range of optional ESG KPIs that can help you prepare for future reporting, demonstrate improvement, and align with customer and regulatory expectations.

<figure><img src="https://551681473-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F0sfFfv9ZuaD3d62mRpKw%2Fuploads%2FEhiYb3MvHyN59piJ5ze5%2FEnv%20KPIs.png?alt=media&amp;token=2d273565-fcb3-47a9-91c3-313331879b46" alt=""><figcaption></figcaption></figure>

## Why Track ESG KPIs?

Implementing ESG KPIs brings several benefits:

* **Quantifies progress** beyond narrative reporting
* **Supports evidence-based decision-making** at leadership level
* **Strengthens internal governance** and cross-team accountability
* **Builds trust** with customers, investors, and regulators
* **Enables alignment** with recognised frameworks such as:
  * CSRD (Corporate Sustainability Reporting Directive)
  * SECR (Streamlined Energy and Carbon Reporting)
  * GRI (Global Reporting Initiative)
  * CDP (Carbon Disclosure Project)

## Suggested KPIs by ESG Theme

Below are examples of optional KPIs you may choose to track and report on. These are not mandatory for assessment but demonstrate strong maturity and help prepare your organisation for formal disclosures.

### **Environmental**

* **Total GHG emissions** (Scopes 1, 2, 3) – tonnes CO₂e
* **Energy consumption** – kWh/year
* **Water usage** – litres per employee or per product
* **Waste generation and recycling rate** – kg or %
* **Product carbon footprint** – g CO₂e per unit
* **% of renewable energy used**

### **Social**

* **Lost Time Injury Rate (LTIR)** – per 100,000 hours worked
* **Employee engagement score** – via internal surveys
* **Training hours per FTE** – average annual figure
* **Diversity metrics** – e.g. gender balance, minority representation
* **Community investment** – hours volunteered or £ invested
* **Employee turnover or retention rate**

### **Governance**

* **ESG training completion rate** – % of employees or board
* **Board-level ESG oversight frequency** – meetings/year
* **ESG-related risks in enterprise risk register** – # identified
* **Policy coverage ratio** – % of required ESG policies in place
* **Supply chain audits completed** – per year or % of suppliers
* **Whistleblower cases reported/resolved**

## When to Use ESG KPIs

* **Internally**: To track performance over time, inform strategy, and report to leadership or boards.
* **In customer engagements**: To respond to supplier questionnaires or meet sustainability expectations in tenders.
* **During reassessment**: To provide evidence of improvement or change since your last SCS ESG Pillar assessment.
* **For disclosure**: As foundational inputs for alignment with formal standards such as CSRD, GRI, or SECR.


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