Measuring the Impact of ESG Initiatives: Key Takeaways

Through communication, identifying metrics and increasing visibility, project leaders can help make ESG goals a reality. 

Environmental, social and governance (ESG) initiatives are critical to a sustainable future. 

A new report from PMI, “Measuring the Impact of ESG Initiatives,” reveals that project leaders struggle with identifying and measuring the impact of their organization’s ESG efforts. It found 72% of decision makers lack trust in reported data to stakeholders, while 63% feel unprepared to meet ESG regulatory mandates. Project professionals have the capabilities needed to overcome these roadblocks, using sound project management practices—such as managing risk, focusing on benefits realization and engaging with stakeholders—to drive demonstrable results backed by data. 

So how can organizations better focus on ESG commitments and deliver value to their stakeholders, partners, communities and customers? Through measurement, aligned metrics and consistent tracking. To move an organization’s ESG ambitions forward, project leaders can: 

• Identify and align on what to measure and define what ESG success looks like.  
• Develop clear metrics and uphold a consistent reporting schedule.  
• Show how the agreed-upon ESG efforts support their organization’s strategy. 
• Document and communicate outcomes to keep teams and organizations accountable and on track. 

Measuring the Impact of an ESG Project 

A critical step for ESG measurement is to establish ongoing communication with all stakeholders to remove confusion or roadblocks to the strategy. Mapping out internal guidelines, regulations or suggested requirements such as the U.N. Sustainable Development Goals helps project leaders to ensure timely delivery of ESG commitments.  

In addition, project leaders need to ensure ESG metrics are meaningful and can be used to show true impact. To prevent ESG data from becoming abstract, teams should meticulously identify, review and implement ongoing milestones.   

Companies also need to consistently track outcomes and report on successes and failures to accurately reflect a project’s performance. For example, UNICEF’s Learning Passport rigorously reviews new data and revises its implementation strategy based on customer feedback, ensuring ESG accountability and customer satisfaction.  

By identifying what to measure, keeping open lines of communication with stakeholders and diligently ensuring metrics align with the strategic vision, organizations and project leaders can keep ESG top of mind and deliver greater impact.  

 
Read the report >>  

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