New Proposal for Sustainability Indicators

A new approach to identifying and developing sustainability KPIs (Key Performance Indicators) for all corporate sectors is suggested in 88-page report From Transparency to Performance: Industry-Based Sustainability Reporting on Key Issues published by The Hauser Center for Non-profit Organizations at Harvard University and the Initiative for Responsible Investment. The authors are Steve Lydenberg, Chief Investment Officer at Domini Social Investments, Jean Rogers, Principal at consulting firm Arup and David Wood, Director of the Initiative for Responsible Investment.

The paper discusses the value of mandatory vs voluntary corporate reporting, and recommends to pursue simultaneously both mandatory reporting of sustainability indicators in a standardized format and reporting on key performance indicators specific to particular industries.

The study’s authors argue that guidance must be relevant to the core operations of the business and that the sustainability data disclosed must be relevant to key stakeholders. They argue that: "Deciding which data points should be disclosed and by whom is critical for the success of this next step in the managing of corporations’ relations with society".

Furthermore they say that determining a “legitimate process” for implementation is the important first step in going down the road to mandatory disclosure. For such purpose, they have concentrated on how a process for determining KPIs might be developed, rather than on determining indicators themselves. Their method relies on three principles — simplicity, materiality, and transparency.


Ver: De la transparencia al desempeño: nuevos indicadores de sostenibilidad