10 ESG Metrics Every Company Should Track in 2026
Introduction: Why ESG Metrics Matter
Understanding ESG is one thing. Measuring it properly is another.
In 2025, businesses are under growing pressure to prove ESG performance with data, not statements. Investors, regulators, and stakeholders increasingly expect clear, consistent, and comparable ESG metrics.
This guide outlines 10 essential ESG metrics every company should track — whether you’re preparing for ESG reporting, investor scrutiny, or simply building a more resilient business.
Environmental (E): Measuring Your Impact on the Planet
1. Greenhouse Gas Emissions (Scopes 1, 2 & 3)
This is the most scrutinised ESG metric.
Scope 1: Direct emissions (fuel, vehicles, on-site operations)
Scope 2: Indirect emissions from purchased energy
Scope 3: Supply chain and indirect emissions (often the largest)
📌 Scope 3 emissions are now a major focus for regulators and investors.
2. Energy Consumption & Renewable Energy Use
Track:
Total energy usage
Energy intensity (energy per unit of output)
Percentage from renewable sources
Reducing energy intensity improves both environmental performance and operating costs.
3. Biodiversity & Land Use Impact
This metric is growing rapidly in importance.
Examples include:
Deforestation risk
Impact on natural habitats
Biodiversity protection or restoration activities
🌱 Nature-positive actions such as forest conservation and ecosystem restoration are increasingly recognised as high-quality ESG indicators.
4. Water Usage & Efficiency
Key metrics include:
Total water withdrawal
Water intensity
Water stress exposure in operating regions
Water risk is now considered a material financial risk in many industries.
Social (S): Measuring People & Community Impact
5. Workforce Health, Safety & Wellbeing
Track:
Accident and injury rates
Absenteeism
Employee turnover
Training hours per employee
Strong social metrics correlate with productivity, resilience, and talent retention.
6. Diversity, Equity & Inclusion (DEI)
Common DEI metrics:
Gender and ethnic diversity at leadership and board level
Pay equity
Promotion and hiring diversity ratios
These metrics are increasingly required in ESG disclosures and investor questionnaires.
7. Supply Chain & Human Rights Compliance
Companies are now expected to track:
Supplier audits
Human rights policies
High-risk supplier exposure
Ethical sourcing compliance
📌 Supply chain transparency is a major ESG risk area in 2025.
Governance (G): Measuring Leadership & Accountability
8. Board Structure & Independence
Key governance metrics include:
Board independence
Board diversity
ESG oversight at board level
Strong governance ensures ESG commitments are enforced, not ignored.
9. Ethics, Compliance & Anti-Corruption
Track:
Code of conduct adoption
Whistleblower mechanisms
Reported ethical breaches
Compliance training completion
These metrics reduce legal risk and build investor confidence.
10. ESG Transparency & Reporting Quality
This is often overlooked — but critical.
Measure:
ESG data coverage and accuracy
Alignment with frameworks (CSRD, GRI, TCFD)
Third-party verification or assurance
📊 Transparent reporting builds trust and protects against greenwashing claims.
How to Prioritise the Right ESG Metrics
Not all ESG metrics are equally important for every business.
A practical approach:
Identify material risks and impacts for your sector
Focus on quality over quantity
Align metrics with regulatory and investor expectations
Choose metrics that support real-world impact
ESG Metrics and Nature-Based Solutions
Environmental ESG metrics are shifting away from abstract targets toward measurable outcomes.
High-quality nature-based actions — such as:
Forest conservation
Ecosystem restoration
Biodiversity protection
…can deliver credible, long-term environmental metrics that support climate, biodiversity, and resilience goals.
🌳 This is where platforms like CloudForests help businesses connect ESG metrics to real, verifiable nature impact.
Final Thoughts: Measure What Truly Matters
ESG metrics aren’t just about compliance. They help companies:
Identify risk
Improve performance
Attract investment
Build long-term trust
The businesses that succeed in 2026 will be those that measure what matters — and act on it.
