Which measurement methods help companies to demonstrate genuine sustainability?
Companies that seriously integrate sustainability into their strategy must measure and document their environmental and social impact. There are various recognised methods that are suitable depending on the focus
1. Carbon footprint - measurement of greenhouse gas emissions
The carbon footprint records the greenhouse gas emissions of a company, product or service. It is divided into three categories (‘scopes’):
Scope 1:
Direct emissions (e.g. company vehicles, production facilities).
Scope 2:
Indirect emissions from purchased energy (e.g. electricity consumption).
Scope 3:
Other indirect emissions along the value chain (e.g. suppliers, logistics, utilisation by customers)
2. Life cycle analysis (LCA) - measuring the sustainability of a product
The life cycle analysis (LCA) assesses the environmental impact of a product or service over its entire life cycle:
- Raw material extraction
- Production
- Transport
- Utilisation
- Disposal/recycling
It is measured by well-known standards such as ISO 14040/14044 or the PEF (Product Environmental Footprint).
3. ESG reporting - measuring sustainability in corporate governance
ESG stands for Environmental, Social and Governance. An ESG report shows how a company performs in these areas.
- Required by investors, customers and regulatory authorities.
- Increases transparency and comparability between companies.
- Basis for sustainable financing (e.g. ESG ratings from MSCI, Sustainalytics)
One well-known standard is the CSRD (Corporate Sustianability Reporting Directive, EU).
4. Sustainability certificates & environmental labels - external validation
Independent certificates and labels confirm the sustainability performance of a company or product.
- Blue Angel (environmentally friendly products in Germany)
- Fairtrade (social sustainability, fair working conditions)
- Cradle to Cradle (circular economy)
- B Corp Certification (holistic sustainability assessment of companies)
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