As environmental, social, and governance (ESG) performance becomes a core part of business strategy, metrics and key performance indicators (KPIs) are now critical for companies aiming to prove credibility and create measurable impact. Investors, regulators, and stakeholders are no longer satisfied with broad sustainability statements. They want data-driven evidence that ESG initiatives translate into real-world outcomes and long-term value.

If you are asking, What ESG KPIs should businesses track in 2025, this guide provides a detailed look at key metrics across the environmental, social, and governance pillars, why they matter, and how to align them with global reporting standards.

What are ESG metrics and KPIs?

ESG metrics are quantifiable data points that measure a company’s performance on environmental, social, and governance issues.

ESG KPIs (Key Performance Indicators) are the specific targets or performance thresholds companies set to improve and demonstrate progress in these areas.

Tracking ESG KPIs in 2025 is no longer optional. It is essential for:

Meeting regulatory disclosure requirements like CSRD, SEC climate rules, and ISSB standards
Gaining access to ESG-focused capital from investors and funds
Enhancing brand reputation and stakeholder trust
Improving risk management and operational efficiency

Why ESG metrics are critical for business in 2025?

The ESG reporting landscape in 2025 is shaped by three major forces:

Regulatory Pressure
The EU Corporate Sustainability Reporting Directive (CSRD), ISSB global standards, and emerging U.S. SEC climate disclosure rules are making ESG metrics a compliance issue rather than a voluntary initiative.
Investor Expectations
Asset managers and institutional investors are increasingly relying on ESG ratings and scorecards to assess risk and resilience. Metrics provide the quantifiable evidence they need.
Competitive Advantage
Companies that track and improve ESG KPIs often uncover operational efficiencies, lower cost of capital, and innovation opportunities, directly tying sustainability to profitability.

In short, what gets measured gets managed. Without ESG KPIs, businesses risk falling behind in credibility and performance.

ESG metrics and KPIs: Environmental pillar

Environmental KPIs measure how a company impacts and interacts with the planet’s natural resources. These metrics are particularly scrutinized under climate-focused reporting frameworks.

Key environmental KPIs to track in 2025 include:

1. Greenhouse Gas Emissions

Scope 1 emissions: Direct emissions from owned or controlled sources
Scope 2 emissions: Indirect emissions from purchased energy
Scope 3 emissions: All other indirect emissions across the value chain

KPI Example: Achieve a 50% reduction in Scope 1 and 2 emissions by 2030, verified under the Science-Based Targets initiative (SBTi).

2. Energy Usage and Renewable Energy Share

Total energy consumption in kWh or GJ
Percentage of energy from renewable sources like solar, wind, and hydro

KPI Example: Source 80% of electricity from renewables by 2027.

3. Water Usage and Efficiency

Total water withdrawal and consumption
Water intensity per unit of production
Percentage of operations in water-stressed regions

KPI Example: Reduce water intensity by 30% by 2025 in high-risk geographies.

4. Waste Management and Circularity

Total waste generated and diverted from landfill
Percentage of materials recycled or reused
Progress toward circular economy initiatives

KPI Example: Achieve 90% waste diversion from landfills and establish closed-loop recycling in core product lines.

5. Biodiversity and Land Use

Area of land rehabilitated or protected
Impact on critical habitats or endangered species
Investments in nature-based solutions

KPI Example: Commit to net-positive biodiversity impact for all new projects by 2030.

ESG metrics and KPIs: Social pillar

Social KPIs focus on people and communities, both inside and outside the organization. In 2025, stakeholders expect clear evidence of social responsibility, inclusion, and human rights practices.

Key social KPIs to track include:

1. Workforce Diversity, Equity, and Inclusion (DEI)

Gender and ethnic diversity in workforce and leadership
Pay equity ratios and promotion rates across demographics

KPI Example: Ensure 40% of leadership positions are held by women and underrepresented groups by 2026.

2. Employee Engagement and Well-being

Employee turnover and retention rates
Health and safety incident rates (e.g., Lost Time Injury Frequency Rate)
Participation in well-being programs and training

KPI Example: Achieve 95% participation in employee engagement surveys with a score of 80% or higher.

3. Human Rights and Supply Chain Responsibility

Number of suppliers audited for labor and human rights compliance
Incidents of child labor, forced labor, or violations in supply chains
Percentage of spend with ethically certified suppliers

KPI Example: Conduct 100% supplier audits in high-risk regions annually.

4. Community Investment and Impact

Total social investment as a percentage of profits
Community development initiatives and beneficiary reach
Partnerships with NGOs or social enterprises

KPI Example: Allocate 1% of net profit annually to verified community impact programs.

ESG metrics and KPIs: Governance pillar

Governance KPIs demonstrate ethical leadership, risk oversight, and decision-making integrity. They are particularly important for investors and rating agencies.

Key governance KPIs to track include:

1. Board Diversity and Independence

Percentage of independent directors
Gender and ethnic diversity at the board level
Board ESG or sustainability committee presence

KPI Example: Maintain 50% independent board members and 40% diverse representation.

2. ESG Integration in Executive Compensation

Proportion of executive bonuses tied to ESG performance
Clear metrics linking environmental and social targets to pay

KPI Example: Link 20% of executive compensation to ESG outcomes by 2025.

3. Anti-Corruption and Ethics

Number of confirmed ethics or compliance breaches
Percentage of employees trained in anti-bribery and ethics policies

KPI Example: Achieve 100% employee completion of annual ethics training.

4. Cybersecurity and Data Privacy

Number of data breaches or privacy incidents
Percentage of employees trained on data security protocols

KPI Example: Maintain zero major data breaches and ensure annual cybersecurity training for 100% of staff.

How to align ESG KPIs with global reporting standards?

Tracking ESG KPIs is only effective if they are aligned with recognized frameworks and communicated transparently. In 2025, key standards include:

GRI (Global Reporting Initiative) for comprehensive ESG disclosure
SASB (Sustainability Accounting Standards Board) for industry-specific metrics
TCFD (Task Force on Climate-related Financial Disclosures) for climate risk reporting
CDP for climate, water, and supply chain transparency
ISSB and CSRD for integrated and investor-focused ESG disclosure

Aligning your KPIs with these standards ensures credibility, comparability, and compliance across markets.

Final thoughts on ESG metrics and KPIs for 2025

The shift toward data-driven ESG means that companies cannot rely on vague commitments. To succeed in 2025 and beyond, businesses must:

Define clear KPIs across environmental, social, and governance pillars
Measure and monitor progress using robust tools and assurance processes
Disclose results transparently to stakeholders, investors, and regulators
Continuously improve to stay ahead of industry and regulatory expectations

By tracking the right ESG metrics and KPIs, companies transform sustainability from a marketing narrative into a measurable engine for long-term business resilience and positive impact.

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If you want to identify, track, and report ESG KPIs effectively, OneStop ESG is here to guide your journey.

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