Measurement
We measure our social, economic and environmental performance using a growing set of metrics that underpin our reporting and help us monitor our progress.
Our key performance indicators
We are committed to reporting on our social, economic and environmental impacts using a robust set of key performance indicators (KPIs).
With a well-established process and a global set of KPIs to measure the eco-efficiency of our manufacturing operations, this is an area that we have been reporting on for 14 years.
We are now making progress in the measurement and reporting of social and economic KPIs too, though we recognise that work remains to be done to consolidate a consistent set of indicators. Some social performance measures and targets are straightforward, such as employee health and safety and consumer safety. However, we find that not all social impacts can be measured in every country, either because it is difficult to do so in a consistent way, or because local laws or the absence of relevant measures prevent us from doing so.
To illustrate our economic impact we use cash value added. This is a measure of the wealth we create by adding value to the raw materials we buy around the world and processing them into branded goods in our local markets. This wealth is then shared among our stakeholders in the form of wages, taxes, dividends and community investment.
Vitality metrics
The next stage in our development has been to measure the impacts of our products across their lifecyle. To begin with we have developed a set of 'vitality metrics' that measure the environmental impacts of our products. There are four indicators covering our priority issues:
greenhouse gas emissions
water
waste
sustainable sourcing.
The metrics seek to measure the impacts of our brands when used by consumers. The first three metrics provide an estimate of each element per consumer use, such as grams of greenhouse gas per single usage occasion of shampoo. The greenhouse gas metric takes into account impacts across a product's lifecycle, including:
direct manufacturing impacts, which we have managed and reported on for more than a decade through our eco-efficiency programme
indirect impacts such as sourcing of raw materials and the quantity of energy and water required for consumer use.
In 2008, we piloted these metrics in selected geographies and with certain products. During 2009 we will be refining these metrics and reviewing how far we can use them to shape future brand development and to set a baseline to track progress across our portfolio.
