Sustainability benchmarking isn’t just about seeing where you are, it’s about identifying where you could be. By looking both inside and outside your industry, defining what good looks like and making the most of available data, businesses can sharpen their strategies and drive real progress.
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With benchmarking, a key question to ask is: what does good look like, and what could bad look like? This isn’t just about ambition, it’s about setting measurable benchmarks.
Are leading companies transparent in their reporting? Do they set science-based targets? What innovative strategies are they using? Are they putting money where their mouths are and not just having the policies and targets in place, but reaching these in a holistic, just way? And is their leadership in support of the initiatives and strategy too? Identifying these elements helps you gauge where your business stands.
Who to benchmark against?
For all these benchmark questions, it is recommended to look at both your industry peers, but also businesses outside your sector. Your direct competitors may help to provide a baseline, but innovation can often come from unexpected places. A technology company might offer insights into energy efficiency, while a consumer goods brand could lead in circular economy initiatives. A consultancy may have a more forward-looking approach to diversity, equity and inclusion (or not… Accenture scraps diversity and inclusion goals), but a utilities company may have a strong track record of community engagement. Looking beyond your industry helps broaden your perspective and uncover fresh approaches.
Looking at other geographies is just as important too, since different regions may have regulations that drive innovation in ways your local market hasn’t yet considered. What’s considered best practice elsewhere could soon become the standard, giving you a head start in adopting forward-thinking strategies.
Data availability challenge
However, with all of the excitement, it’s easy to overlook some of the challenges, and one of the biggest challenges in benchmarking that we often come up against is data availability. While some companies publish extensive reports, others provide limited insights. This doesn’t mean benchmarking isn’t possible, but businesses could consider running two versions: one based on publicly available data and another with estimated insights where data is lacking. Even the best investigative efforts can’t always fill the gaps, but a comparative approach still provides valuable direction.
Sustainability benchmarking isn’t just about seeing where you are, it’s about identifying where you could be. By looking both inside and outside your industry, defining what good looks like and making the most of available data, businesses can sharpen their strategies and drive real progress.
If you'd like support in any of these areas, please reach out to Marigold:
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