How do you measure sustainability performance against competitors?

1 Define your scope and goals

Before you start measuring your sustainability performance, you need to define the scope and goals of your assessment. What aspects of sustainability are relevant for your industry and business model? What are your strategic objectives and targets for sustainability? Who are your main competitors and how do you compare with them in terms of size, market share, and reputation? By answering these questions, you can narrow down your focus and set clear criteria for your measurement.

2 Choose your reporting standards

One of the main challenges of measuring sustainability performance is the lack of a universal standard or framework that applies to all sectors and organizations. However, there are several voluntary reporting standards and guidelines that can help you structure and communicate your sustainability performance in a consistent and credible way. Some of the most widely used standards are the Global Reporting Initiative (GRI), the Sustainability Accounting Standards Board (SASB), the International Integrated Reporting Council (IIRC), and the Task Force on Climate-related Financial Disclosures (TCFD). Depending on your scope and goals, you can choose one or more of these standards to report on your sustainability performance.

3 Collect and analyze your data

Once you have chosen your reporting standards, you need to collect and analyze the data that reflects your sustainability performance. This can include quantitative data, such as your carbon footprint, water consumption, waste generation, energy efficiency, and social impact, as well as qualitative data, such as your policies, practices, initiatives, and achievements in sustainability. You can use various tools and methods to collect and analyze your data, such as surveys, audits, indicators, indexes, ratings, and software. The key is to ensure that your data is accurate, reliable, and relevant for your reporting standards.

4 Compare and benchmark your performance

After you have collected and analyzed your data, you can compare and benchmark your sustainability performance against your competitors. You can use different sources and platforms to access and compare your competitors' sustainability data, such as their sustainability reports, websites, databases, rankings, awards, and media coverage. You can also use tools and frameworks that allow you to compare and benchmark your performance across different dimensions and indicators of sustainability, such as the Dow Jones Sustainability Index (DJSI), the Carbon Disclosure Project (CDP), the Environmental, Social, and Governance (ESG) ratings, and the Sustainable Development Goals (SDGs). By comparing and benchmarking your performance, you can identify your strengths and weaknesses, gaps and opportunities, and best practices and innovations in sustainability.

5 Communicate and improve your performance

The final step of measuring your sustainability performance is to communicate and improve it. You can use various channels and formats to communicate your performance to your internal and external stakeholders, such as reports, dashboards, infographics, stories, and videos. You can also use feedback and engagement mechanisms to solicit and respond to the views and expectations of your stakeholders, such as surveys, dialogues, forums, and partnerships. By communicating your performance, you can enhance your transparency, accountability, and reputation in sustainability. By improving your performance, you can achieve your sustainability goals and objectives, and gain a competitive edge in the market.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?