The Role of Sustainable Development Indicators in Corporate Decision-making

The research finds that while sustainable development indicators are widely reported in corporate documents, their actual integration into decision-making processes remains limited. At the Board level, indicators are primarily used for risk management, such as health and safety. In corporate strategic management, senior executives have access to indicators—sometimes via Balanced Scorecards—but concrete examples of their use in guiding decisions are scarce. Supply chain management is in an "embryonic stage," relying more on codes of conduct and certifications than quantitative indicators. The author recommends further research into Board accountability, the development of context-specific supply chain metrics, and the integration of sustainability targets into individual performance appraisals.

• At the Board level, corporations are increasingly establishing dedicated committees to manage sustainable development, but there is a lack of evidence showing how specific indicators inform Board-level decisions.
• Board-level use of sustainable development indicators is largely restricted to risk management, with health and safety metrics being the most regularly reviewed.
• In corporate strategic management, senior management generally has access to sustainability indicators, often through the use of Balanced Scorecards or quarterly reviews, though their specific role in guiding decisions is not well-documented.
• The use of sustainable development indicators in supply chain management is in its early stages, with companies relying more on qualitative tools like codes of conduct and green procurement policies than on quantitative indicators.
• A review of 17 Canadian corporate reports showed that while most include performance measures, only 35% clearly report progress against explicit targets for the indicators highlighted in their tables or figures.

APA

Searcy, C. (2009). The Role of Sustainable Development Indicators in Corporate Decision-making. International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/role_of_sustainability_indicators.pdf

Chicago

Searcy, Cory. The Role of Sustainable Development Indicators in Corporate Decision-making. International Institute for Sustainable Development, 2009. https://www.iisd.org/system/files/publications/role_of_sustainability_indicators.pdf.

Wikipedia

{{cite report |last1=Searcy |first1=Cory |title=The Role of Sustainable Development Indicators in Corporate Decision-making |publisher=International Institute for Sustainable Development |date=August 2009 |url=https://www.iisd.org/system/files/publications/role_of_sustainability_indicators.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{searcy2009role, author = {Searcy, Cory}, title = {{The Role of Sustainable Development Indicators in Corporate Decision-making}}, institution = {International Institute for Sustainable Development}, year = {2009}, month = aug, url = {https://www.iisd.org/system/files/publications/role_of_sustainability_indicators.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }