ACCA Applied Knowledge · Business and Technology · Sustainable business practices
A retailer wants to measure progress on waste reduction. Which of the following is the best example of a quantified sustainability key performance indicator?
The best KPI is tonnes of waste sent to landfill per 1,000 units sold, compared with target. It is quantified, linked to the waste objective, and can be tracked over time. A general statement or a list of bins does not measure outcomes.
- ATonnes of waste sent to landfill per 1,000 units sold, compared with the targetCorrect
- BA statement that the company cares about the environment
- CA list of recycling bins installed in head office
Explanation
A good KPI is measurable, relates to the objective and can be compared with a target or past results. Waste to landfill per 1,000 units meets all these tests. A general statement of care is not measurable, and a list of bins measures activity or inputs rather than outcomes.
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