KPIs: Balancing Quantity with Relevance

Well.... As with everything, we need to strike a balance. Too many KPIs can lead to excessive workload and unnecessary costs. The right number and type will vary from company to company. Sure, benchmarking KPIs is essential, but the range of possibilities is limitless. So, let's keep a few things in mind:

• Expanding square footage with a 20% reduction in energy use is far better than growing without it.
• Constructing an energy-efficient building is always preferable to building a high-consumption one.
• If one certificate addresses waste, we should complement it with others that cover deforestation, water scarcity, and other related issues.

There"s no single KPI that captures everything. And no certificate that certifies it all.

In fact, when it comes to certifications, I'm a strong advocate for using specific certificates for specific ESG aspects, rather than bundling everything into one; the same applies to ESG ratings.

We have recently concluded a project with a similar idea: instead of adding new dimensions to existing certificates, let's add additional modules that need to be earned independently. This way, it remains understandable what was measured by the KPIs.

In sustainability and good management, as in many things, the holy grail lies in the details.