Key Performance Indicator (KPI)

Definition

KPI is a commonly used term often applied to EMS and CSR to signify specific measurements of the degree of advancement of measures implemented to achieve set environmental and CSR related targets.

Key Performance Indicators are quantitative and qualitative measurements of the degree of advancement toward preset targets used as management benchmarks to evaluate performance and results in various fields. A growing number of companies are introducing environmental and CSR management systems to realize continuous performance improvement in these areas. Both management systems usually implement the plan-do-check-act (PDCA) cycle method, and indicators and quantitative or qualitative data is necessary to evaluate the effectiveness of the measures being implemented.

For example, a KPI for an EMS with an objective of "improving the recycling of resources" may focus on "percentage of waste recycled" and set a target of "above 99%". On the other hand, CSR Europe found that CSR management was being hindered by the task of collecting and analyzing vast amount of KPI data and also that individual figures give only a snapshot of conditions at a specific time and their consolidation can conceal differences from individual practices and sites *1 *2.