10 ESG metrics and KPIs you must track in your projects
Companies across all industries face growing social and political pressure to align their operations with Environmental, Social, and Governance (ESG) principles. As a result, ESG KPIs have become a key focus for investors, regulators, and other stakeholders who now demand that organizations actively contribute to a more sustainable and equitable world.
And, as expected, this reality directly impacts Project Management. Whether you are responsible for your organization’s PMO or a Project Manager, integrating ESG metrics into your management processes is essential. Doing so ensures that your initiatives align with corporate sustainability goals while contributing to a more responsible and equitable future.
In this article, we will introduce 10 ESG metrics and KPIs that you must track in your projects and explain why they are crucial in today’s business landscape.
What are ESG metrics?
ESG metrics are measurable indicators used to assess an organization’s environmental impact, social responsibility, and governance practices. These data points help businesses evaluate their performance in areas such as carbon emissions, energy consumption, diversity, and regulatory compliance.
The importance of ESG metrics has surged in recent years due to global challenges such as climate change, social inequality, and corporate accountability. Additionally, several factors have accelerated ESG monitoring in project management, including:
- Regulatory Compliance: governments and international organizations are implementing stricter sustainability regulations. Examples include the EU’s Corporate Sustainability Reporting Directive (CSRD) and the SEC’s proposed climate risk disclosures in the U.S.
- Consumer and employee pressure: today’s society prefers brands committed to ethical and sustainable business practices.
- Climate risks and resource scarcity: organizations increasingly face risks related to resource shortages, environmental disasters, and evolving climate policies.
STRATEGIC PORTFOLIO MANAGEMENT
Align ESG with your strategic business goals
With Triskell Software, ensure every portfolio decision supports sustainability, governance, and long-term ESG objectives.
Why ESG KPIs are crucial in Project Management
Whether launching a new product, constructing new infrastructure, or optimizing operations—whatever the project, you must implement an ESG strategy to track sustainability outcomes to:
- Reduce environmental impact: by monitoring carbon emissions, energy consumption, and waste management, companies can optimize resource use and minimize their ecological footprint.
- Ensure regulatory and ethical compliance: governance-related ESG metrics help prevent legal and reputational risks.
- Strengthen stakeholder trust: transparency in ESG reporting enhances relationships with investors, customers, and society as a whole.
- Improve decision-making: tracking ESG performance enables companies to plan strategically, manage risks, and create long-term value.
Examples of ESG metrics for project and portfolio management
ESG metrics are grouped into 3 groups:
- Environmental (E): this pillar focuses on a company’s impact on the environment, including its carbon footprint, energy efficiency, water conservation, waste management, and biodiversity protection.
- Social (S): this dimension evaluates how a company interacts with employees, local communities, and various stakeholders. It encompasses workforce diversity, labor rights, workplace safety, community engagement, and product responsibility.
- Governance (G): Governance assesses a company’s internal policies, leadership ethics, regulatory compliance, and transparency in reporting. Strong governance ensures anti-corruption measures, ethical supply chain practices, responsible AI usage, data privacy protection, and diversity in board leadership.
Now, we will analyze the impact of key ESG metrics in Project Management and how they can help companies make responsible, data-driven decisions.
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ESG metric #1: Carbon footprint
The carbon footprint is arguably the most closely monitored environmental ESG metric. It measures the total greenhouse gas (GHG) emissions generated directly or indirectly by a project, process, or organization. Tracking carbon emissions allows companies to implement reduction strategies, comply with regulatory requirements, and achieve their sustainability goals.
Which companies should track their carbon footprint?
Industries with a significant environmental impact, such as Manufacturing, Construction, and Technology, should prioritize carbon footprint monitoring.
How to measure Carbon footprint
To accurately assess carbon emissions, organizations must follow internationally recognized standards such as the Greenhouse Gas Protocol (GHG Protocol) or ISO 14064. The measurement is classified into three scopes:
- Scope 1 – Direct emissions: emissions from company-owned or controlled sources (e.g., fuel combustion in company vehicles, machinery, etc.).
- Scope 2 – Indirect energy emissions: emissions from purchased electricity, heating, or cooling used for daily operations.
- Scope 3 – Supply chain & indirect emissions: emissions related to business travel, outsourced activities, material procurement, waste disposal, and customer product usage.
When should you measure carbon footprint in project management?
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ESG metric #2: Water usage and efficiency
Water is one of the most critical natural resources, yet its availability is increasingly constrained by climate change, industrial activities, and population growth. For this reason, water efficiency is another key ESG metric, reflecting a company’s ability to optimize consumption, minimize waste, and prevent contamination.
Which companies should track water usage and efficiency?
Industries heavily reliant on water—such as Construction, Manufacturing, Energy, and Agriculture—must ensure responsible water management to:
- Comply with regulatory requirements.
- Minimize environmental impact.
- Guarantee long-term sustainability.
- Reduce operational costs.
Streamline ESG project tracking and reporting
Track your carbon footprint, supply chain ethics, and workforce sustainability with ease. See how Triskell Software can help you optimize ESG-driven projects.
How to measure Water usage and efficiency
Water consumption is measured in cubic meters (m³) or gallons per unit of production. To ensure accuracy, organizations should use smart water meters, IoT sensors, and real-time data analytics tools.
Additionally, water efficiency is assessed by comparing water consumption levels to production output or company revenue.
When should you measure Water usage and efficiency in project management?
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ESG metric #3: Energy consumption
The next key environmental ESG metric to consider is energy consumption. This metric measures how efficiently an organization uses electricity, fuels, and other energy sources in its daily operations. In project management, optimizing energy use is essential for cost control, carbon footprint reduction, and compliance with climate regulations.
Which companies should monitor energy consumption?
Industries with high energy demands—such as construction, logistics, data centers, and heavy manufacturing—must closely track and reduce their consumption through efficiency measures and the adoption of renewable energy sources.
Companies that prioritize energy efficiency not only contribute to global sustainability goals but also strengthen their operational resilience and long-term profitability.
How to measure energy consumption?
Energy consumption is measured in kilowatt-hours (kWh) or megajoules (MJ). Like water consumption, energy efficiency is evaluated by comparing usage against production output or revenue. For advanced real-time tracking, it is recommended to use energy management software and smart meters.
When should you measure energy consumption in project management?
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Initiation & Planning |
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Streamline ESG project tracking and reporting
Track your carbon footprint, supply chain ethics, and workforce sustainability with ease. See how Triskell Software can help you optimize ESG-driven projects.
ESG metric #4: Waste Management and Recycling Rate
Waste management helps organizations minimize landfill use, increase recycling rates, and optimize material usage. Efficient waste management is crucial to reducing environmental impact and improving resource efficiency.
Which companies should monitor waste management?
Certain industries generate large volumes of waste, such as construction, retail, healthcare, and food production. For these sectors, implementing circular economy strategies and sustainable disposal methods is essential to:
- Reduce pollution.
- Lower waste disposal costs.
- Ensure compliance with regulatory standards.
It provides companies operating in the European Union or working with European stakeholders with a standardized method to align their projects with the EU Taxonomy and determine their sustainability impact.
How to measure waste management and recycling rate?
Waste management performance is typically measured with three KPIs:
- Total waste generated (tons/year): Measures total waste produced across all operations.
- Recycling rate (%): percentage of waste that is recycled instead of sent to landfills.
- Landfill diversion rate (%): percentage of waste repurposed through recycling, composting, or reuse.
When should Waste Management and Recycling Rate be measured in project management?
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ESG metric #5: Workplace safety and health
Workplace safety is an ESG metric that reflects an organization’s commitment to employee well-being and risk management. A strong workplace safety culture not only reduces accidents but also enhances productivity.
Which companies should monitor workplace safety?
Some industries pose higher safety risks for workers, such as construction, logistics, mining, and manufacturing. In these sectors, it is crucial to focus on proactive risk prevention, safety training, and strict compliance with regulations.
How to measure Workplace Safety and Health?
This ESG metric can be assessed using three key indicators:
- Total Recordable Incident Rate (TRIR): measures the rate of workplace injuries per 200,000 hours worked.
- Lost Time Injury Rate (LTIR): tracks the ratio of work-related injuries resulting in lost workdays.
- Fatality Rate: Percentage of workplace fatalities.
Workplace safety must be continuously monitored through regular safety audits and employee training programs to ensure a safe working environment.
When should you measure workplace safety and health in project management?
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ESG metric #6: Community Engagement and Social Impact
A company’s ability to positively engage with society—promoting local well-being, economic development, and social equity—is another key ESG metric to be tracked in project management.
Which companies should measure community engagement and social impact?
Industries such as energy, manufacturing, and telecommunications often have a direct impact on local communities. To build trust and establish long-term relationships, companies must adopt fair labor practices, promote transparent dialogue, and invest in local initiatives.
How to measure community engagement and social impact?
Measuring a company’s social impact requires both qualitative and quantitative assessments, including:
- Stakeholder interviews.
- Online surveys.
- Economic impact studies.
When should you measure community engagement and social impact in project management?
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PROJECT PORTFOLIO MANAGEMENT
Ensure ESG compliance across your project portfolios
Go beyond traditional PPM and see how Triskell Software can help to ensure every project aligns with ESG compliance and sustainability goals.
ESG metric #7: ethical supply chain
An ethical supply chain ensures that all suppliers adhere to established standards for fair labor practices, environmental sustainability, and responsible sourcing, mitigating risks such as:
- Human rights violations.
- Corruption.
- Environmental degradation.
Which companies should monitor their supply chain?
Companies operating in retail, manufacturing, and technology must prioritize this ESG metric to avoid reputational damage and legal consequences.
How to monitor ethical supply Chain?
To gather data and insights on the supply chain, companies should conduct supplier audits, sustainability reports, and third-party certifications (e.g., Fair Trade, ISO 20400).
When should you measure ethical supply chain in project management?
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ESG metric #8: ESG policy compliance and reporting transparency
Regulatory compliance and transparency in ESG reporting are essential to building trust among investors, regulators, and society. Companies must ensure their disclosures are accurate, verifiable, and free from greenwashing, aligning with global standards such as GRI, SASB, TCFD, and CSRD.
Which companies should monitor their supply chain?
All companies, but especially those in the Banking, Finance, Healthcare, and Energy sectors, where strict ESG reporting regulations apply.
When should you measure Policy Compliance and Reporting Transparency in project management?
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Streamline ESG project tracking and reporting
Track your carbon footprint, supply chain ethics, and workforce sustainability with ease. See how Triskell Software can help you optimize ESG-driven projects.
ESG metric #9: Biodiversity Preservation
Biodiversity preservation is a shared responsibility. Companies must prioritize minimizing the impact of their operations on ecosystems, wildlife, and natural habitats. To achieve this, they should implement measures that help:
- Restore biodiversity.
- Prevent deforestation.
- Reduce ecosystem disruption.
Which companies should prioritize biodiversity preservation?
Industries such as mining, agriculture, energy, and construction have a significant environmental footprint and must adopt nature-positive strategies to mitigate their impact.
How to measure biodiversity preservation?
To assess environmental impact, companies can leverage remote sensing technologies (e.g., GIS mapping, satellite imagery, environmental sensors) and conduct biodiversity audits to monitor their footprint. Key indicators include:
- Water pollution index (mg/L): measures pollutant levels in nearby water sources.
- Land use impact (ha/year): tracks habitat loss due to business operations.
- Deforestation rate: records forest loss caused by business activities.
When should you measure Policy Compliance and Reporting Transparency in project management?
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STRATEGIC PORTFOLIO MANAGEMENT
Align ESG with your strategic business goals
With Triskell Software, ensure every portfolio decision supports sustainability, governance, and long-term ESG objectives.
ESG metric #10: workforce diversity and inclusion
Last but certainly not least, workforce diversity and inclusion (D&I) is a key social ESG metric that allows companies to assess their ability to foster an equitable, diverse, and inclusive work environment.
In today’s business landscape, companies that prioritize diversity and inclusion not only meet ESG expectations but also achieve higher employee satisfaction, improved talent retention, and a stronger brand reputation.
Which companies should prioritize workforce diversity and inclusion?
Nearly all mid-sized and large companies face challenges related to gender representation, racial equity, and pay gaps. Measuring and improving D&I metrics helps organizations ensure fair hiring practices, leadership diversity, and an inclusive workplace culture.
How to measure workforce diversity and inclusion?
Here are some key indicators to track diversity and inclusion within an organization:
- Gender diversity (%): percentage of employees identifying as female or non-binary.
- Ethnic and Racial Diversity (%): percentage of employees from underrepresented racial or ethnic backgrounds.
- Leadership Diversity (%): Percentage of women and minorities in executive and board-level roles.
- Gender Pay Gap (%): Difference in average earnings between men and women in similar roles.
When should you measure workforce diversity and inclusion in project management?
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Project phase
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Actions
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Initiation & Planning |
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Execution |
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Closure & review |
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PROJECT PORTFOLIO MANAGEMENT
Ensure ESG compliance across your project portfolios
Go beyond traditional PPM and see how Triskell Software can help to ensure every project aligns with ESG compliance and sustainability goals.
Conclusion: make your ESG KPIs impact your business
ESG metrics are not something that can be ignored in project management. Companies that incorporate ESG principles into their decision-making processes are proven to achieve greater resilience and long-term financial stability.
A structured ESG framework improves operational efficiency, reduces risk and generates sustainable value for businesses, communities and the environment. Companies that proactively adopt ESG best practices will be the industry leaders of the future.
Streamline ESG project tracking and reporting
Track your carbon footprint, supply chain ethics, and workforce sustainability with ease. See how Triskell Software can help you optimize ESG-driven projects.
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FAQ ESG metrics and KPIs
For more information on ESG metrics and PPM, what resources can you consult?
For more information on ESG and Project Portfolio Management, you can the resources below:
- How to prioritize projects: best criteria and techniques for effective project prioritization.
- IT Project Management: The ultimate handbook for leading all types of IT projects.
- Critical success factors in project management: Is on budget or on time enough anymore?
- 10 types of PMO: structure, purpose and how to choose the right one.
- 35 PMO KPIs and metrics for Project Portfolio Management.
- What is Lean Portfolio Management? Your path to achieve business agility.
- Resource Management in Project Management: processes, tools and techniques.
- How to manage resource constraints in a multi-portfolio environment.
How can ESG compliance impact a project's success?
ESG compliance plays a direct role in project success by ensuring regulatory adherence, risk mitigation, and stakeholder trust. Companies with strong ESG compliance benefit from:
- Reduced legal and financial risks – Avoid fines, litigation, and reputational damage from non-compliance.
- Better access to investment and funding – Investors prioritize ESG-compliant projects for sustainable financing.
- Improved stakeholder relations – ESG transparency fosters trust with customers, employees, and regulators.
- Higher operational efficiency – Sustainable resource management reduces costs and improves long-term profitability.
Can ESG metrics be customized for different projects?
Yes, ESG metrics should be tailored to the specific needs, industry, and goals of each project. For example, a construction project may prioritize carbon emissions, waste management, and workplace safety, while a tech company may focus on data privacy, cybersecurity, and workforce diversity.
What challenges do companies face when implementing ESG KPIs?
Data collection and standardization
Solution: Use automated ESG reporting platforms and adopt industry standards for benchmarking.
Regulatory uncertainty
Solution: Stay updated on emerging ESG laws (e.g., CSRD, SEC Climate Disclosures) and conduct regular compliance audits.
Stakeholder resistance
Solution: Educate leadership teams on the financial and reputational benefits of ESG adoption.
Integration into existing business processes
Solution: Align ESG with corporate strategy, ensuring cross-departmental collaboration and executive buy-in.
Measuring long-term ESG impact
Solution: Set short-term and long-term ESG goals, track progress over time, and use both qualitative and quantitative data to measure impact.
