As businesses worldwide face mounting pressure to align with sustainable and ethical practices, ESG metrics have emerged as the cornerstone for measuring an organisation’s true impact. These metrics go beyond numbers, offering a window into how companies balance profit with purpose. From Apple’s strides in reducing emissions to Nike’s inclusive supply chain programs, the journey toward embedding ESG principles is both transformative and urgent. Let us delve into the key ESG metrics that will shape corporate accountability in 2025.
Understanding ESG Metrics
Environmental, Social, and Governance (ESG) metrics help measure how a company impacts the environment, treats employees, and manages itself. They show if a business is responsible, ethical, and committed to sustainability.
Environmental metrics focus on areas like energy use, greenhouse gas emissions, waste, water management, and efforts to protect biodiversity. They help reveal how a company addresses its environmental footprint and takes responsibility for its impact. Take Apple’s recent move as an example. The company reduced lifecycle greenhouse gas (GHG) emissions by 30% for the new iPhone 16 Pro and iPhone 16 Pro Max.
On the social side, these metrics assess how a business interacts with its employees, customers, and communities. By focusing on diversity, human rights, community involvement, and product safety, they show the company’s dedication to fair and ethical practices.
As for governance, the metrics evaluate leadership, transparency, and decision-making. Factors such as board diversity, executive pay, and anti-corruption policies highlight whether the company is well-managed and trustworthy.
ESG metrics every company should monitor
As companies face increasing pressure to show their commitment to social and environmental responsibility, tracking the right ESG (Environmental, Social, Governance) metrics has never been more critical. Whether you are just getting started or looking to improve your current ESG metrics, make sure to track these seven key metrics for your business:
1. Gender pay equity
Gender pay equity measures the pay difference between men and women in the same roles and at the same level within an organisation. Any organisation needs to create an environment where all employees, regardless of gender, are paid fairly.
According to the International Labour Organisation, women, on average, earn about 20% less than men globally. More concerning is that the gender pay gap in India is even wider, at 34%. Given its importance, gender pay equity should be a key component of your organisation’s Environmental, Social, and Governance (ESG) reports.
2. Diverse board of directors
A company’s board needs diversity in age, gender, ethnicity, and professional backgrounds. This shows that DEI is a priority in decision-making and that the company values meaningful representation, not tokenism. Women leaders and directors from marginalised groups can help prevent blind spots, particularly in industries where inclusivity remains a challenge.
Take Hindustan Unilever (HUL), often called the “CEO Factory,” for its track record of DEI in leadership roles. Prabha Narasimhan now leads Colgate-Palmolive India as managing director, while Priya Nair serves as business group president for Unilever’s beauty and wellbeing sector. Harman Dhillon plays a key role as HUL’s executive director of beauty and wellbeing and general manager for South Asia.
However, prioritising diversity doesn’t mean reducing an individual’s contributions to their gender, ethnicity, or background. The goal is to value a person for their skills while also making sure different perspectives are included to create fair and meaningful progress. This way, diversity isn’t just for show but for building a leadership team that is both talented and genuinely representative of everyone.
3. Employee diversity
A company should not only focus on having diversity in its board of directors. It is just as essential to ensure that diversity extends to the entire workforce, including employees at all levels. It means promoting gender diversity, as well as diversity in terms of ethnicity, age, background, and experience, across the whole organisation, not just within leadership roles.
4. Clearly defined business ethics
A policy that protects employees from discrimination and ensures equal opportunities shows a company’s commitment to human rights. If a company ignores reports of discrimination or unethical treatment, it indicates that its human rights policies are ineffective.
From an ESG perspective, business ethics is a responsibility throughout the entire organisation. It means that every decision, from the highest level of leadership to the newest hire, reflects a commitment to integrity, fairness, and sustainability.
To truly measure how an organisation is performing on human rights, look beyond just policies and track how these principles are lived out daily. Are employees empowered to speak freely and protected from unfair treatment? Are their rights respected across all levels of the organisation?
5. Health and safety
Some industries, such as manufacturing, naturally carry higher risks than others, making health and safety policies essential. It is vital to assess the effectiveness of existing health and safety policies. These policies should be tailored to the specific risks of the sector, ensuring they address potential hazards and protect employees.
Metrics like tracking the number of incidents over time help measure the effectiveness of health and safety measures. However, they don’t tell the whole story. You also need to look at how employees perceive safety in the workplace. Do they feel confident in the safety protocols? Are they reporting hazards or accidents without fear of retaliation?
6. Cutting wastage in your company
Every business produces some waste, even if it’s not always obvious. Take a tech company, for example. Waste in this context could include e-waste from outdated electronics, packaging waste from shipping products, or energy consumption from running servers. Focusing on waste reduction can improve resource use, cut operational costs, and enhance the brand’s reputation. It can also attract customers and investors who value responsible, sustainable practices.
7. Supply chain management
Supply chain management refers to the way a company organises and oversees its activities related to sourcing materials, producing goods, and delivering products to customers. While companies often focus on the efficiency and cost-effectiveness of these operations, it’s equally important to consider the social impact of their supply chains, particularly when it comes to labour practices and diversity.
For example, a company that manages its supply chain well might ensure that workers in its factories are treated fairly, paid appropriately, and work in safe conditions. However, a more socially responsible approach looks beyond just the labour conditions and includes broader social issues. It means assessing the diversity of suppliers, such as how many are owned by women or minorities.
Nike’s Diverse Supplier Program is an excellent example of how companies can positively impact their supply chain by focusing on diversity and inclusion. Nike created the Business Diversity and Inclusion program to provide opportunities for suppliers from underrepresented communities, such as minority-owned or women-owned businesses, to compete for contracts with the company.
The final thoughts
These metrics are essential, but not all of them apply to every industry. Each industry faces unique challenges. Hence, the relevance of these metrics will vary. However, these metrics can still offer valuable insights into a company’s operations and efforts to address key issues.
Well-designed metrics help you identify areas for improvement and integrate better practices into your company’s value chain. It is also worth asking your customers, employees, and shareholders for feedback. Their perspectives can provide further insight into where you can make meaningful changes.
Disclaimer: The views expressed in this article are based on the writer’s insights, supported by data and resources available both online and offline, as applicable. Changeincontent.com is committed to promoting inclusivity across all forms of content, which we define broadly to include media, policies, law, and history—encompassing all elements that influence the lives of women and gender-queer individuals. Our goal is to promote understanding and advocate for comprehensive inclusivity.
