“Let’s set sustainability KPIs.”
This is a phrase that appears more and more frequently as companies advance their sustainability initiatives. Yet once discussions about KPIs begin, a certain discomfort often emerges within the organisation.
The numbers are defined, but no one is quite sure what needs to change.
Targets such as reducing CO₂ emissions or increasing the share of women in management are formally established. However, it is often unclear how those figures connect to everyday decisions and operations.
KPIs are reported in meetings, but they rarely influence how work is actually carried out. In practice, this situation is not uncommon in sustainability initiatives.
KPIs are an important tool for guiding organisational action. However, they are not always the right place to start. In many cases, they only begin to function once the organisation’s direction and the structure of its activities have become clearer.
In this article, we explore a common misconception in sustainability KPI discussions and consider how these indicators can be approached differently, drawing on Neuromagic’s perspective on designing organisational structures and decision-making systems.
A Common Pattern: Numbers Come First
One pattern appears frequently when organisations begin discussing sustainability KPIs.
“Reduce CO₂ emissions by 30%.”
“Increase the share of women in management to 20%.”
Targets like these are defined first, and the discussion then moves on to how they might be achieved. There is nothing inherently wrong with setting targets. However, when the conversation begins with the numbers themselves, organisations often encounter the following problem: No one can clearly explain what needs to change in order for those numbers to move.
As a result, the KPI exists, but it remains disconnected from day-to-day work. The organisation has metrics, but they do not function as practical guidance for action. This situation is surprisingly common in sustainability programmes.
In many cases, the issue lies less in the numbers themselves and more in the order in which the system is designed.
Designing from Actions, Not Just Metrics
There is another way to approach KPI design. Rather than starting with the metric, it can be more useful to begin by examining which activities actually influence the outcome in question.
Take CO₂ emissions as an example. Several operational areas typically contribute to the result:
・Energy sourcing
・Equipment and production processes
・Logistics
・Supplier practices
The next step is to consider which changes in these areas would realistically shift the outcome. For instance, upgrading equipment, introducing renewable energy, or revising procurement standards.
Only after these connections are understood does it become meaningful to define the indicator that will measure progress.
In other words, the sequence becomes: Activities → Change → Indicator (KPI)
When KPIs are designed in this way, they are no longer abstract targets. Instead, they become indicators that reflect how the organisation is actually evolving. For teams on the ground, this makes the metric easier to interpret. When the number moves, people understand what kind of change is taking place.
KPIs Are Not Something You “Set” — They Are Something You Design
At Neuromagic, we rarely treat KPI development as a standalone exercise. Instead, we view it as part of a broader effort to design the structure that supports sustainability management.
The process usually begins with understanding the current situation: existing initiatives, available data, and areas where gaps exist. From there, we explore how organisational activities lead to measurable changes, and how those changes can be captured through appropriate indicators. In many cases, the KPI emerges naturally from this process.
A principle we often share with clients is this: KPIs are not simply metrics to be set. They are systems that must be designed to function.
For a KPI to truly work, it needs to appear naturally in conversations, inform decision-making, and connect with operational behaviour across the organisation.
Only then does it begin to serve its purpose.
The same holds true for sustainability initiatives more broadly. What ultimately matters is not just the number itself, but the structure that allows that number to move.
If You’re Unsure Where to Start with KPI Design
When designing or reviewing sustainability KPIs, many organizations find themselves unsure where to begin.
At Neuromagic, we provide hands-on support tailored to each phase, from current state assessment and organizational design to data structuring and KPI design.
Please feel free to contact us.
For inquiries related to this article, please select “Roadmap Development Support” in the contact form.
