Measuring sustainability: Effective strategies for companies

The change: Why measuring sustainability became indispensable

Do you remember the days when sustainability reports were purely marketing tools? Those days are a thing of the past. Today, measuring sustainability is no longer a nice extra, but a central strategic necessity.

From freestyle to duty: the pressure is increasing

More and more German companies are realizing how important measurable sustainability activities are. There are various reasons for this change. One important factor is the increasing regulatory requirements. The EU taxonomy and the CSRD (Corporate Sustainability Reporting Directive) are obliging more and more companies to disclose their sustainability performance in detail.

Investors are also exerting increasing pressure. They are demanding transparency and demonstrable success in the area of ESG criteria (environmental, social, governance). They are aware that sustainability has a significant impact on the value of a company in the long term.

Consumers and employees: sustainability as an important decision criterion

Consumer expectations have also changed significantly. Sustainability is playing an increasingly important role in purchasing. A survey conducted at the beginning of 2025 showed that around 40% of employees surveyed in Germany would be prepared to change jobs if their employer was involved in climate-damaging projects.

This result illustrates the growing expectations of corporate responsibility. You can find more detailed statistics here. Companies must therefore not only improve their sustainability performance, but also communicate it transparently. You can find out more about sustainability in companies here.

Measurable advantages: Sustainability as a value driver

Forward-looking companies use sustainability measurement to generate real added value. They understand that measuring sustainability not only means compliance, but also creates new business opportunities.

By systematically collecting and evaluating sustainability data, companies can minimize risks, increase their efficiency and improve their image.

Concrete examples: From medium-sized companies to corporate groups

Companies of all sizes are already successfully implementing sustainability measurement strategies. From SMEs that are reducing their carbon footprint to corporations that are making their entire supply chain sustainable – these examples prove that sustainability is measurable and makes economic sense. This leads to measurable economic benefits, such as improved financing conditions and greater attractiveness for investors.

The key figures that really count

Sustainability is essential for companies today. But how do you actually measure it? Being “green” alone is not enough – you need tangible evidence. This section explains which key figures are really relevant and how you can make the best use of them.

Environmental indicators: Keeping an eye on the ecological footprint

Environmental indicators record the impact of your company on nature. The carbon footprint, i.e. the amount of CO? emitted, is central to this. However, water consumption, the recycling rate and the proportion of renewable energy are also important factors. These key figures help you to understand your environmental impact and reduce it in a targeted manner.

The infographic compares three key environmental indicators: CO? emissions per year, water consumption per employee and recycling rate. The differences illustrate the need for a holistic approach. While CO? emissions show a need for action, the high recycling rate indicates positive developments.

The following table provides an overview of key sustainability indicators:

“Core indicators for measuring sustainability” shows the most important indicators, organized by category, with measurement units and their relevance for companies.

Category	Indicator	Unit of measurement	Relevance for companies
Environment	CO? emissions	tons of CO? per year	Very high
Environment	Water consumption	Cubic meters per year/employee	High
Environment	Recycling rate	Percent	High
Environment	Share of renewable energies	Percent	High
Social issues	Employee satisfaction	Index (e.g. from 1-10)	Very high
Social issues	Occupational safety	Accident rate per year	Very high
Social issues	Diversity	Proportion of different groups (e.g. gender, origin)	High
Governance	Corruption cases	Number of reported cases	Very high
Governance	Transparency of corporate governance	Index (e.g. assessment by independent organizations)	Very high

The table shows that environmental as well as social and governance factors are relevant for companies. Measuring these key figures enables a comprehensive assessment of sustainability performance.

Social key figures: Focus on people and society

In addition to ecological aspects, social impacts are also relevant. Social indicators measure, for example, employee satisfaction, occupational safety, diversity and the fair treatment of suppliers. Responsible corporate governance focuses not only on profit, but also on the well-being of employees and ethical principles. One example is supply chain responsibility. How are fair working conditions at suppliers guaranteed? Transparency in the supply chain and fair wages are crucial for sustainable business.

Governance metrics: For ethical corporate governance

Governance metrics relate to the structures and processes within the company. These include combating corruption, the independence of the Supervisory Board and the transparency of corporate management. Good corporate governance is the basis for sustainable action and creates trust among investors, customers and employees. Compliance with the law and clear internal guidelines are essential here. This protects against risks and strengthens the company’s image.

The right mix of key figures for your success

Which KPIs are most important for your company depends on your industry, size and sustainability goals. An individual mix of key figures that reflects your most important sustainability aspects is crucial. This allows you to measure progress, optimize your strategy and communicate your sustainability performance transparently. The targeted selection and analysis of these key figures forms the basis for a successful and sustainable future for your company. You gain the trust of your stakeholders and position yourself as a pioneer in sustainability – a win-win situation for your company and the environment.

Navigating standards: Which frame suits you?

Choosing a suitable sustainability standard can be confusing given the many different frameworks and standards. This section provides guidance to help you find the right approach for your business. After all, measuring sustainability is essential for success.

International standards: Global comparison

International standards offer companies the opportunity to compare their sustainability performance with other companies worldwide.

• Global Reporting Initiative (GRI): The GRI Standards cover a wide range of sustainability topics and provide a comprehensive framework for reporting. More information on GRI
• Sustainability Accounting Standards Board (SASB): The SASB standards focus on industry-specific sustainability aspects and are particularly relevant for investors. More information about SASB
• Task Force on Climate-related Financial Disclosures (TCFD): The TCFD recommendations focus on the disclosure of climate-related risks and opportunities. More information on TCFD

National approaches: Focus on Germany

In addition to international standards, there are also national frameworks that are specifically tailored to the needs of German companies.

The German Sustainability Code (DNK) offers a compact and practice-oriented framework for sustainability reporting. It is particularly suitable for small and medium-sized enterprises (SMEs) as an introduction to the topic.

The German Sustainable Development Strategy (DNS) integrates the Sustainable Development Goals (SDGs) of the United Nations. It serves to measure and manage sustainability in Germany. You can find out more about the German Sustainability Strategy here.

EU regulations: CSRD and EU taxonomy

The Corporate Sustainability Reporting Directive (CSRD) and the EU taxonomy tighten reporting obligations for companies. The CSRD expands the group of companies subject to reporting requirements and demands more detailed information. The EU taxonomy defines which economic activities are considered environmentally sustainable. What is ESG and how can you use it for your company?

The right combination: synergies and efficiency

The large number of standards can lead to duplication of work. An intelligent combination of different standards utilizes synergies and avoids redundancies. The Sustainability Code can serve as a basis, supplemented by GRI or SASB standards, in order to meet the requirements of different stakeholders. This allows companies to measure sustainability and minimize their efforts at the same time.

Which standard suits you?

The choice of the right standard depends on various factors.

Factor	Relevant standard
SMES	DNK, GRI Standards (selected indicators)
Large companies	GRI Standards, SASB Standards, TCFD Recommendations
Financial sector	EU taxonomy, TCFD recommendations
Industry focus	SASB standards
Climate reporting	TCFD recommendations

This table serves as an initial guide. An individual consultation can determine the optimum combination for your situation. Consistent application and transparent communication of the results are important. This will make you a pioneer in sustainability.

The right tools: From data chaos to clarity

Measuring sustainability means keeping an eye on lots of different data. From CO? emissions to employee satisfaction and supply chain transparency – the amount of data can quickly become confusing. This section shows you how suitable software solutions can help you to bring order to your data and manage your sustainability performance efficiently.

From Excel chaos to automated data collection

Many companies initially use Excel spreadsheets to measure their sustainability. This may be sufficient for the first few steps, but as complexity increases, manual calculations reach their limits. Specialized sustainability software offers a much better solution here. It automates data collection, minimizes sources of error and saves time. This enables a more precise measurement of sustainability.

The right software for your needs

The selection of sustainability tools is diverse. From affordable entry-level solutions for SMEs to comprehensive platforms for corporations, there are many options. It is important to choose software that suits your individual requirements.

• Data sources: Which data sources need to be integrated? (e.g. ERP systems, energy management systems)
• Reporting obligations: Which standards and frameworks must be taken into account? (e.g. GRI, DNK, CSRD)
• Range of functions: Which functions are important to you? (e.g. carbon footprint calculation, supply chain analysis, risk assessment)
• Scalability: Can the software keep pace with the growth of your company?

To make your choice easier, we have created a comparison table that compares different software solutions:

Table: “Comparison of sustainability software and tools”
Description: “Comparison of various digital solutions for sustainability measurement according to functional scope, costs and suitability for company sizes”

Tool/Software	Main functions	Target group	Price category	Integration with other systems
Example software A	CO? tracking, reporting	SMEs	Low	Limited
Example software B	Supply chain analysis, risk assessment	Corporate groups	High	Extensive
Click A Tree	Automate sustainability measures, achieve ESG targets, improve CSR reporting	SMEs, corporations	Medium	API integration
Example software D	Data visualization, stakeholder communication	All	Medium	Good

This table provides an initial overview. It is advisable to compare different providers and use free trial versions.

Hidden costs and implementation

In addition to the license costs, also consider hidden costs, for example for training, adjustments or data migration. Smooth integration into existing systems is essential for success. Click A Tree offers individual advice and technical support.

AI and automation: the future of sustainability measurement

Modern technologies such as artificial intelligence (AI) and automation are becoming increasingly important in sustainability measurement. For example, AI can analyze large amounts of data, identify patterns and make predictions. This improves data quality and speeds up the reporting process. Many leading companies are already using AI-based solutions to optimize their sustainability performance.

From data collection to strategic advantage

The right tools not only help you to measure sustainability, but also to use the data obtained strategically. By analyzing sustainability data, you can identify risks, discover potential and make well-founded decisions. This turns sustainability from a reporting issue into a real competitive advantage.

Use the opportunities offered by digitalization to improve your sustainability performance and achieve your corporate goals. With the right software and suitable strategies, you can make sustainability measurable and controllable – and thus make an important contribution to the future.

Measuring sustainability that also impresses the finances

Sustainability and profitability belong together. Accurate sustainability measurement can increase financial value creation. In this section, you will learn how leading companies calculate the Return on Sustainability Investment (ROSI) and how you can benefit from it.

Sustainability indicators and financial performance

There is a correlation between sustainability indicators and financial performance. A low environmental impact and high employee satisfaction often go hand in hand with increased efficiency and reduced costs. The brand image also benefits. This has a positive effect on turnover and profit. Investors see these key figures as indicators of long-term success.

The Solactive Sustainability Index Europe, which also includes German companies, provides insights into the financial performance of sustainable companies. Available since the beginning of 2025, the index showed a performance of 0.62 percent over the last 30 days in March 2025. Detailed statistics can be found here. Interest in sustainable investments is growing.

Integration of sustainability metrics into financial decisions

How can sustainability be integrated into financial decisions? One example is investment evaluation. In addition to traditional financial indicators, ESG factors (environmental, social, governance) should also be taken into account. What is the environmental impact? What social risks are there? A holistic approach enables better risk assessments and more sustainable decisions.

The same applies to risk management. By monitoring ESG factors, companies can identify risks at an early stage and take action. In this way, financial damage, reputational damage and legal problems can be avoided.

Advantages for financing and competitiveness

Sustainability in the financial strategy offers many advantages. Companies with strong ESG performance often receive better financing conditions. Investors prefer sustainable companies and grant more favorable loans. The attractiveness for investors and the corporate image increase.

Sustainability creates competitive advantages. Companies that focus on sustainability at an early stage position themselves as innovators and open up new markets. They gain customer confidence and retain employees. Read also: How to master your CSRD sustainability reporting.

By measuring and managing sustainability, companies not only improve their environmental and social footprint, but also their financial performance. A win-win situation for everyone involved.

Avoid stumbling blocks: Common mistakes when measuring

Measuring sustainability is a complex task. Many companies make mistakes that affect the validity of their results. This section highlights common mistakes and provides tips on how to avoid them. This will make your sustainability measurement target-oriented and effective.

Incomplete data: An incomplete picture

A common mistake is the use of incomplete data. Companies often only focus on individual areas, while other aspects of sustainability are neglected. This results in a distorted picture of actual performance. Holistic data collection is essential for meaningful results. Capture all relevant areas to gain a comprehensive understanding of your sustainability performance.

Inconsistent methods: ensuring comparability

Different survey methods lead to inconsistent results. This makes it difficult to compare and interpret the data. Make sure you use uniform standards when collecting and evaluating data. This is the only way to obtain comparable data and effectively measure your progress in the area of sustainability.

Lack of comparability: where do we stand?

Without comparative values, it is difficult to classify your own performance. Benchmarking with other companies enables an objective assessment and reveals potential for improvement. Use best practices and industry comparisons as a guide to optimize your sustainability strategy and remain competitive.

Limited resources: efficiency is crucial

SMEs in particular often have limited resources for measuring sustainability. Concentrate on the most important key figures. Use tools to minimize the effort. Click A Tree offers solutions that are specially tailored to SMEs and help you to carry out effective sustainability measurement even with limited resources.

Simplifications and compromises: The right balance

Simplifications in data collection reduce the effort involved, but can jeopardize the informative value. Think carefully about which simplifications make sense and where compromises reduce data quality. Transparency about the methods used is important here to ensure credibility.

Communication and stakeholders: Transparent dialog

The results of sustainability measurement should be communicated transparently – both internally and externally. An open dialog with stakeholders promotes trust and provides valuable feedback. Use the results to further develop your sustainability strategy.

Step-by-step development: Continuous improvement

A robust measurement process takes time. Start with the most important key figures and expand your system step by step. Avoid overload and focus on continuous improvement. With Click A Tree you can automate your measures and achieve your ESG goals. This will make your sustainability measurement successful.

Shaping the future of sustainability measurement

The need to measure sustainability is undisputed today. But what does the future hold for these measurement methods? This section looks ahead and analyzes the trends that will shape sustainability measurement in the coming years.

Technological progress: new possibilities for precise measurements

Advancing digitalization is opening up new ways to measure sustainability more precisely and efficiently. Real-time data collection by sensors and IoT devices provides comprehensive information on resource consumption, emissions and other environmental aspects.

These data volumes are processed using AI-supported analyses to identify patterns and create forecasts. This enables companies to monitor and optimize their sustainability performance in real time.

Blockchain technology is also playing an increasingly important role. It ensures the transparency and tamper-proofing of sustainability data.

New key figures: Beyond the carbon footprint

The focus of sustainability measurement is expanding. In addition to traditional environmental indicators such as the carbon footprint, new metrics are gaining in importance.

Measuring biodiversity impacts, systemic effects and social contributions is becoming increasingly important. Companies must learn to quantify these complex aspects and integrate them into their sustainability strategy. Innovative measurement approaches are needed here.

According to the SDG Summit at the midpoint of the 2030 Agenda in 2023, 85 percent of the measurable targets in Germany are not on track for implementation. Find more details on the statistics here. This alarming development requires new strategies.

Future-proof measurement systems: Agility and adaptability

Companies must design their metering systems to be future-proof. Regulatory requirements in the area of sustainability are constantly increasing. New standards and frameworks are being introduced.

Companies must react flexibly to these changes. Agile measurement systems that can be quickly adapted to new requirements are therefore essential. Leading companies are already relying on modular systems. These can be flexibly expanded and configured.

From measurement to management: sustainability as an integral part of corporate strategy

The future of sustainability measurement lies in its integration into the corporate strategy. Measurement data must serve as the basis for strategic decisions.

This means that sustainability indicators must be integrated into all relevant business processes – from product development to the supply chain and marketing. This is the only way for companies to achieve true sustainability and make a positive contribution.

Practical examples: How companies are future-proofing their metering systems

More and more companies are using innovative technologies and measurement approaches to optimize their sustainability performance. One example is the use of satellite data to monitor deforestation.

Another example is the use of AI-based algorithms to evaluate the social performance of suppliers. These examples show how sustainability measurement is shaping the future of companies.

Automate your sustainability efforts and achieve your ESG goals with Click A Tree. Visit Click A Tree to find out more.