KPIs can be financial (EBITDA margin, cash conversion cycle) or non-financial (customer satisfaction, emissions intensity). For KPIs that are published or linked to bonuses and financing terms, a defined calculation method and independent verification increase reliability.
Related terms
Integrated reportingA company presenting its strategy, governance, performance and prospects in a single report that explains its value-creation process across financial and non-financial capitals.Green financeInstruments such as green bonds, green loans and sustainability-linked loans used to finance projects with environmental benefits.Carbon Border Adjustment Mechanism (CBAM)An EU regulation that puts a price on the embedded carbon emissions in the production of certain goods imported into the European Union.Carbon footprintThe total greenhouse gas emissions caused by an organisation, product or activity, expressed in carbon dioxide equivalent (tCO₂e).Climate-related risksThe potential effects on a company's financial position of physical risks arising from climate change and transition risks arising from the shift to a low-carbon economy.Double materialityAssessing sustainability matters both in terms of their effect on the company's financial position (financial materiality) and the company's impact on the environment and society (impact materiality).
Last updated: October 22, 2026 · This definition is for general information only.