ABSTRACT
This chapter is about creating sustainability-aligned metrics and reporting systems that inform and monitor progress towards the “smart” sustainability-aligned Bridge strategy objectives presented in Chapter 3. Systems thinking is used to establish appropriate measurement boundaries and feedback signals. This requires establishing sustainability-aligned and stage appropriate SMART goals. We introduce a multi-capital framework for measuring stock, flow, and threshold performance. Sustainability is integral to the core business and so there is only one strategy and one integrated measurement and reporting system that is enhanced and adapts as the enterprise strategy and performance progresses.
Measurement and reporting system design criteria, collaborations, tools, and case examples are presented for each of the four smart Bridge strategy stages. Doing stage companies realize how much they are already doing. Doing Well is the stage most sustainability-engaged companies are at today. Their performance management and reporting systems showcase competitor differentiation and optimize financial performance and value. Doing Well and Doing Good-stage companies are implementing all prior-stage performance objectives, but cannot become complacent. Their systems need to progress to be more holistic and interconnected with societal goals. Thriving-stage companies are pioneering science-based measurement systems and collaborating to devise context-based allocation schemes that are ethical and fair. These companies are starting to advance their enterprises and industries holistically to contribute to a thriving, flourishing society and world.
