Sustainable KPI Definitions
Scope 1 Emissions -- Metric tons of CO2 equivalent (mtCO2e) in millions
Scope 1 emissions are direct greenhouse (GHG) emissions that occur from sources that are controlled or owned by an organization (e.g., emissions associated with fuel combustion in boilers, furnaces, vehicles).
Scope 2 Emissions: Location-Based -- Metric tons of CO2 equivalent (mtCO2e) in millions
Scope 2 emissions are indirect GHG emissions associated with the purchase of electricity, steam, heat, or cooling. Although scope 2 emissions physically occur at the facility where they are generated, they are accounted for in an organization’s GHG inventory because they are a result of the organization’s energy use. A location-based method reflects the average emissions intensity of grids on which energy consumption occurs (using mostly grid-average emission factor data).
Scope 2 Emissions: Market-Based -- Metric tons of CO2 equivalent (mtCO2e) in millions
Scope 2 emissions are indirect GHG emissions associated with the purchase of electricity, steam, heat, or cooling. Although scope 2 emissions physically occur at the facility where they are generated, they are accounted for in an organization’s GHG inventory because they are a result of the organization’s energy use. A market-based method reflects emissions from electricity that companies have purposefully chosen (or their lack of choice). It derives emission factors from contractual instruments, which include any type of contract between two parties for the sale and purchase of energy bundled with attributes about the energy generation, or for unbundled attribute claims.
If there are two companies that have the same electricity consumption in the same region, their location-based totals will be the same, but if one purchased a lot of green electricity and the other hasn’t, then the market-based total for the green electricity purchaser will be significantly lower.
To summarize, the market-based method incentivizes organizations to take control of their own electricity fuel type mix and not passively rely on the local grid average.
Scope 3 Emissions -- Metric tons of CO2 equivalent (mtCO2e) in millions
Scope 3 emissions are indirect GHG emissions resulting from the organization's operations and value chain. They are often broken down between upstream and downstream activities. You can think of upstream activities as inputs for creating the product or service and downstream as outputs or distributing the product or service. Examples of upstream Scope 3 emissions sources include: business travel by means not owned or controlled by an organization, waste disposal, and purchased goods & services. Examples of downstream Scope 3 emissions sources include: processing of sold products, use of sold products and the end-of-life treatment of sold products.
Total Emissions -- Metric tons of CO2 equivalent (mtCO2e) in millions
Sum of Scope 1, 2, and 3 GHG emissions made by the company during a specified period.
Total Energy Use -- Gigajoules (GJ)
The total amount of energy that has been consumed within the boundaries of the company's operations. An organization can consume energy in various forms, such as fuel, electricity, heating, cooling, or steam. Energy can be self-generated or purchased from external sources and it can come from renewable sources (such as wind, hydro or solar) or from non-renewable sources (such as coal, petroleum or natural gas).
Renewable Energy Use -- Gigajoules (GJ)
The total amount of energy that has been consumed within the boundaries of the company's operations from renewable sources such as wind, hydro, or solar.
Total Waste Produced -- metric tons (MT)
Total waste produced by the company during the period.
Waste Diverted -- metric tons (MT)
Sum of waste reused, recycled, or recovered by the company during the period.
Water Use -- Cubic meters (M3)
Quantity of water consumed or stored during the reporting period for future use.
Number of Full-Time Employees
Number of total employees who work at a company full-time.
Number of Female Employees
Number of female employees who work at a company full-time.
Female Employees in Management Positions
Number of female employees in management roles at a company.
Minorities in Workforce
Number of minority employees who work at a company full-time.
Minorities in Management Positions
Number of minorities in management roles at a company.
Total Incident Rate
The number of nonfatal injuries and illnesses that occur because of a company’s operations in each period, divided by the total hours worked by employees.
Number of employee or contractor fatalities that occur because of a company’s operations in a given period
Gender Pay Ratio
The gender pay ratio refers to the difference in earnings between women and men. It is calculated by comparing the median pay for men vs the median pay for women at a company.
According to Pew Research, in 2020, women earned 84% (or $0.81 on $1.00) of what men earned, according to an analysis of median hourly earnings of both full- and part-time workers. Based on this estimate, it would take an extra 42 days of work for women to earn what men did in 2020.
Minority Pay Ratio
The minority pay ratio refers to the difference in earnings between minorities compared to whites. It is calculated by comparing the median pay for a given minority vs the median pay for a white person at a company.
According to research from Payscale, Black women earn $0.97 and Black men see a pay gap of $0.98 for every dollar earned by a white man with the same job and qualifications.
Employee turnover, or employee turnover rate, is the measurement of the number of employees who leave an organization during a specified period, typically one year. While an organization usually measures the total number of employees who leave, turnover can also apply to subcategories within an organization like individual departments or demographic groups.
CEO Pay Ratio
CEO pay ratio indicates the gap between the compensation of the CEO and that of a median employee.
The average CEO of an S&P 500 company made 299 times more money than the median employee last year, the union federation said in a press release issued Wednesday. This is greater than the CEO-to-worker ratio of 264 to 1 in 2019, Reuters reports.
The % of corporate boards made up of women or people of color.
Is the company a GRI signatory?
Is the company a SASB signatory?
Is the company a TCFD signatory?
Is the company a CDP signatory?
Has the company set SDGs?