2.5 Connecting KPIs and Material Topics
Relevant and precise key performance indicators (KPIs) are used to measure the company’s material topics over a specific period of time. Like the material topics themselves, the requirements for these KPIs vary from company to company. It is best to apply a framework like SMART to define KPIs that will be meaningful and effective over the years. KPIs are SMART if they are specific, measurable, attainable, relevant, and time-based. After KPIs are put in place and data gathering can start, these KPIs are combined with goals and measures to enable comparison over time and to document the implemented improvement measures.
Example of a KPI scorecard framework for the material topic of personnel safety:
Material Topic | Strategic Goal | KPI | Target Value 20XY +3 | Value 20XY | Measures | Data Source | Owner | Remarks | |
Environment | |||||||||
Social | Personnel safety | Provide a safe work environment | Accident frequency rate | 0 | 3 |
| Reporting office HR | XYZ, HR | |
Rating by external control | ABC | XYZ |
| XYZ | XYZ, HR | ||||
Number of near misses/accidents | 0 | 18 |
| Personnel safety feedback channel | XYZ, HR | ||||
Governance |