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ESG is a hot topic Companies striving to build long-
term value for their stakeholders, the community and the
environment often integrate ESG indicators into their
business models. ESG stands for environmental, social and
governance metrics – both qualitative and quantitative – to
highlight how well or poorly a firm is doing in terms of long-
run sustainability. Just as the dashboard of a car provides
real-time information on speed and mileage, and alerts us
when things such as engine oil or gas needs our attention,
ESG dashboards provide a company with information on a
variety of sustainability metrics such as CO2 emissions, water
usage, fatalities, etc. It alerts us to environmental and social
risks that pose threats to a company’s future operations and
well-being. On the flipside, however, ESG has been vilified by
some and the space has become quite difficult to navigate.
Elon Musk recently tweeted “ESG is a scam” to former Vice
President Mike Pence’s comments that ESG is politically
driven. Another example is the state of Texas, which has
barred local governments from doing business with banks
that don’t support oil, gas and guns.
Many stakeholders welcome ESG reporting Despite
this controversy, many businesses have turned to ESG re-
porting to satisfy the informational needs of their external
and internal stakeholders. Investors and governments as
well as customers and employees are becoming more and
THE AUTHORS
CB Bhattacharya
Zoffer Chair of Sustainability and Ethics,
University of Pittsburgh, PA
Mostafa Zaman
Postdoctoral Researcher, University of
Pittsburgh, PA
KEYWORDS
ESG, Sustainability, Responsibility,
Metrics, Decision-Making, Investment,
Double Materiality
The What, Why and How
ofESGDashboards
Many businesses have turned
to ESG reporting to satisfy
the informational needs of
their external and internal
stakeholders.
32 — doi 10.2478 / nimmir-2023-0005 ESG Dashboards
ESG Dashboards Vol. 15, No. 1, 2023 NIM Marketing Intelligence Review 33
more concerned with ESG issues. Environmental metrics
include a company’s efforts to battle global warming, reduce
carbon emissions, enhance water quality, manage waste and
control other emissions. Social KPIs provide information on
what a company is doing to better the lives of its customers
and employees, including how it supports diversity, encour-
ages employee involvement, protects human rights and
upholds labor standards. And finally, governance measures
cover issues such as the steps an organization takes to be
accountable for its sustainability targets, combat corruption
and guarantee the longevity of its financial investments.
Beyond its use by investors, rating agencies and other
external parties, there are several internal benefits to
developing and using an ESG dashboard.
FIGURE 1 What stakeholders seek from ESG dashboards
Adapted from Horoszowski (2022)
ESG metrics help investors and
business leaders make more
holistically informed financial
decisions.
Get assurance
ESG metrics help employees
and consumers make informed
decisions about where they
want to work and spend their
money.
See impact
ESG metrics help governments
make and monitor policies,
compliance and laws.
Monitor regulation
compliance
Internal
stakeholders
External
stakeholders
NIM Marketing Intelligence Review Vol. 15, No. 1, 2023 ESG Dashboards
34
What stakeholders expect from ESG reporting The
various internal and external stakeholders have different
motivations for using ESG dashboards. Expectations
typically fall into one or more of the categories presented
in Figure 1. Stakeholders either seek assurance for their
decision-making or are interested in sustainability impact
or regulation compliance. ESG reporting needs to consider
these different functions. ESG for assurance is all about
adjusting for financial risk and making better financial
decisions, while the aspect of driving sustainable business
transformation remains in the background. ESG reporting in
that sense helps investors, board members and chief exec-
utives monitor potential risks to the financial bottom line
– for example, a lawsuit for non-inclusive hiring practices,
or decreased future earnings as natural resources become
less available. In this context, the new concept of “double
materiality” is emerging, which is presented in Box 1. ESG
for impact monitoring is about leveraging ESG to drive more
sustainable business models and creating positive social and
environmental value. ESG further serves to demonstrate
compliance with laws and requirements imposed by outside
authorities – like national governments or the U.S. Securities
and Exchange Commission. Regulation can differ across
countries or regions like the EU and should mostly facilitate
the adoption and comparison of specific standards across
industries and regions.
BOX 1
The special role of the ESG assurance function: the concept of “double materiality”
ESG dashboards ideally provide two types of information: “inside out” and “outside in.” The first perspective refers to
a company’s environmental and social impact on people and planet. The second one refers to the impact of people and
planet on the company and indicates its future profitability – typically described in terms of risks, vulnerabilities and
resilience. This dual use of ESG metrics and thus the dashboard has given rise to a concept called “double materiality.”
Companies can use the concept of double materiality to examine both the financial and non-financial effects of their
actions to develop a more thorough ESG strategy.
The “double materiality” concept has been built into new European regulations, where disclosure is required from
the point of view of the environment and society’s financial impact on the company – the financial materiality –
and conversely of the company’s impact on society and the environment – environmental and social materiality. It
recognizes that opportunities and risks may be significant from both a financial and a non-financial standpoint and
acknowledges that businesses are accountable for the current and potential negative effects of their activities on
individuals, society and the environment.
ESG criteria are becoming more and more popular among investors for assessing investment opportunities. They
can give much-needed legitimacy to a company that wants to showcase its sustainability prowess to investors.
Foremost, however, ESG metrics and analysis are intended to be “a means to an end, and that end is a planet that is
livable – and lives worth living, a strategy that explicitly acknowledges that investors have a role to play in providing
these outcomes to the world,” says Amy Domini, the founder and chair of Domini Impact Investments and a pioneer
in the ESG field, in an interview in the New York Times. In reality however, investors and ratings agencies have mostly
ignored this part and Wall Street’s current system for ESG investing, which is designed almost entirely to maximize
shareholder returns, falsely leads many investors to believe their portfolios are doing good for the world. Recent
initiatives such as promoting the understanding of “double materiality” that look at both sides of the coin can provide
valuable course correction.
ESG Dashboards Vol. 15, No. 1, 2023 NIM Marketing Intelligence Review 35
The internal benefits of ESG Beyond its use by investors,
rating agencies and other external parties, there are several
internal benefits to developing and using an ESG dashboard.
Making company progress on sustainability transpar-
ent
ESG dashboards are useful tools for demystifying
and showcasing to internal and external stakeholders
that a company’s sustainability projects are real and
not just greenwashing, vague promises or lip service. It
shows whether the company is on track to achieve its
goals and gives the company legitimacy and credibility
in stakeholders’ eyes. Verifiable KPIs in the dashboard
can also make it easier for the business to handle legal
difficulties when they arise.
Having all the ESG data in one place makes the task
of ESG reporting easier There are myriad reporting
frameworks with their own idiosyncratic requirements –
Global Reporting Initiative (GRI), Carbon Disclosure Project
(CDP), Taskforce on Climate-related Financial Disclosures
(TCFD), Sustainability Accounting Standards Board (SASB)
and the like. Often, different stakeholders – investors, pol-
icy makers, NGOs, regulators – rely on different disclosure
frameworks, and having good data collection mechanisms
in place makes it easier for companies to comply with
such requirements.
Fostering accountability and improving decision-
making By showing the performance of sustainability
initiatives vis-a-vis targets spanning issues, geographies
and departments, the ESG dashboard fosters account-
ability on the part of senior management and improves
decision-making. For example, the ESG dashboard can
help managers use quantitative analysis to demonstrate
to their employees, C-suite and board members the ef-
fectiveness of their sustainability strategy, which in turn
informs company decision-making and resource allocation
internally.
Allowing compensation schemes based on ESG perfor-
mance Tying ESG performance to variable compensa-
tion of employees is increasingly popular as it provides
additional motivation to integrate sustainability into
one’s daily work routine and accelerates sustainability
progress overall.
Enlivening the “sustainability culture” of an organi-
zation ESG dashboards play a key role in developing
a sense of “sustainability ownership.” Companies that are
successful in the sustainability space use key metrics to
ESG dashboards are useful tools for showcasing to internal
and external stakeholders that a company’s sustainability
projects are real and not just greenwashing.
NIM Marketing Intelligence Review Vol. 15, No. 1, 2023 ESG Dashboards
36
communicate incessantly to their employees and other
stakeholders – via hallway tickers, computer pop-ups and
the dashboard itself.
How to build ESG dashboards for more sustainability
While monitoring ESG metrics is beneficial for companies,
failure to comprehend value and inappropriate measure-
ment methodologies might result in mediocre or even
negative performance. ESG reporting is a complicated area,
and companies who report to different stakeholders with
different requirements may find it challenging to stay on
top. As Perez et al. aptly put it in their McKinsey article, “ESG
is a process, not an outcome.” Figure 2 shows the important
steps in such a process.
The first point to note is that the ESG dashboard is idiosyn-
cratic to a company and ought to be tightly coupled with
the company’s purpose, its raison d’etre, or the answer to
the all-important question of “why do we do what we do?”
Is a car company’s purpose to sell more cars or to provide
mobility? The answer to this question will undoubtedly feed
into its sustainability strategy and ultimately to the metrics
displayed in the ESG dashboard.
Once purpose is clear, the next step in deciding the sustain-
ability strategy is to define a set of concrete or “material”
focus areas and goals for the company, the idea being that
sustainability is a big playing field and all companies do not
have to run after the same goals. For instance, while reducing
CO2 emissions may be material for a cement manufacturer
like LaFarge Holcim, financial literacy and inclusion may be
more material for a bank like ING. Materiality analysis entails
assessing key stakeholders’ expectations of the company’s
sustainability efforts and juxtaposing those with the man-
agers’ assessment of the company’s ability to deliver on
those goals. Footprinting, impact screening and traditional
FIGURE 2 Steps toward clear ESG goals and more sustainability
A
company’s
purpose
Sustainability
Define
Operationalize
Current state
Short- and long-
term targets
Stakeholder
expectations
Capabilities
ESG
metrics
Focus areas and
sustainability
goals
ESG
goals
ESG Dashboards Vol. 15, No. 1, 2023 NIM Marketing Intelligence Review 37
SWOT analysis are all part of the process of defining a set of
concrete sustainability goals for a company.
In a third step, ESG metrics are defined and operationalized
in the defined focus areas of the company. Figure 3 provides
examples of ESG metrics for a hypothetical company.
On the basis of such metrics, companies can set clear goals
in a fourth step. Ideally, they will follow the ESG metrics with
a baselining exercise (where are we today) and a visioning
exercise (where we want to be by 2030 or 2040), which
enables them to set year-on-year targets for those metrics.
Data collection on the metrics typically happens through the
Enterprise Resource Management (ERM) systems that most
companies have in place, and then visualization platforms
such as Tableau by Salesforce are used to bring the dash-
board to life.
ESG dashboards are a means to an end In essence, the
ESG dashboard metrics serve as a means of accountability
for all parties concerned and contribute to ensuring that the
business adheres to its ESG commitments. Companies should
use a purpose-driven approach with strong commitment
from management and use cross-functional teams from
On the basis of ESG metrics, companies can set
clear sustainability goals.
E
Environmental S
Social G
Governance
Carbon emissions
Tons of toxic waste
Percent of energy reduction
Percent of water reduction
Percent of sustainably
sourced products
Amount of pay tied to
climate response targets
Percent of racial/ethnic group
representation at all levels
Gender pay gap
Investment in upskilling
per employee
Employee satisfaction and
retention
Number and types of
employee wellness initiatives
Number of female directors
Number of minority directors
Board involvement on
climate issues
Alignment of executive
compensation with
sustainability goals
FIGURE 3 Examples of ESG metrics
NIM Marketing Intelligence Review Vol. 15, No. 1, 2023 ESG Dashboards
38
FURTHER READING
Bhattacharya, C. B. (2019). Small actions, big
difference: Leveraging corporate sustainability to drive
business and societal value. Routledge.
Horoszowski, M. (2022). We need to create a shared
language around ESG.
https://www.triplepundit.com/story/2022/shared-
language-esg/755661
https://www.nytimes.com/2022/06/18/your-money/
esg-investing-stocks-elon-musk.html?smid=em-share
https://www.washingtonpost.com/business/
what-new-esg-approach-double-materiality-means--
and-why-jpmorgan-is-a-fan/2022/09/21/777a5ea0-
39af-11ed-b8af-0a04e5dc3db6_story.html
https://www.mckinsey.com/capabilities/
sustainability/our-insights/how-to-make-esg-real
areas including supply chain, technology and infrastructure
to formulate a plan to integrate ESG metrics for reporting and
identify gaps and deficiencies in current practices. Identify-
ing emerging technologies such as automation, blockchain,
AI and data analytics can lead to improved efficiencies in
ESG reporting. Although ESG impact is sometimes inherently
more difficult to measure, the degree of difficulty ought
not to be a deterrent. If a company’s purpose authentically
aligns with social, environmental and governance causes, it
leads to a clear view of ESG metrics and gives guidelines to
create a more reliable and actionable ESG dashboard – and a
better planet.
The authors thank Claudia Garcia of Enel
North America and Jenelle Sams of the
Antea Group for their insights into ESG
dashboards.
ESG Dashboards Vol. 15, No. 1, 2023 NIM Marketing Intelligence Review 39
