Development Of Sustainability Key Performance Indicators (KPIs): A Systematic Literature Review

Aulia Maray Obvius CESSARIA; Agus  BANDIYONO

doi:10.38142/ijesss.v5i4.1112

Authors

Aulia Maray Obvius CESSARIA STAN Polytechnic of State Finance, Indonesia
Agus BANDIYONO STAN Polytechnic of State Finance, Indonesia

DOI:

https://doi.org/10.38142/ijesss.v5i4.1112

Keywords:

Global Reporting Initiative (GRI), Sustainability Balanced Scorecard (SBSC), Sustainability Key Performance Indicators (KPIs)

Abstract

This research aims to review the development of sustainability performance measurement indicators used around the world. The application of these indicators varies greatly because there is no standard that regulates sustainability performance measurement indicators. The Global Reporting Initiative (GRI) is one of the guidelines for the implementation of Sustainability Key Performance Indicators (KPIs). However, it does not rule out the possibility of companies adopting other systematics that are widely developed, such as the Sustainability Balanced Scorecard (SBSC). By conducting a Systematic Literature Review (SLR) approach, there are 8 articles as data in the study. Reference articles come from Scopus and Google Scholar database sources with restrictions on publication years 2019-2024. The selected articles discuss factors that become challenges and obstacles, measurement methods, and strategies for formulating sustainability performance indicators. The research results present a literature review of variations in sustainability performance measurement indicators applied to the private sector depend on the entity's objectives, strategies, and the interests of external parties or stakeholders.

Downloads

Download data is not yet available.

References

Asiaei, K., O’Connor, N. G., Moghaddam, M., Bontis, N., & Sidhu, J. (2023). Corporate sosial responsibility and performance measurement systems in Iran: A levers of control perspective. Corporate Sosial Responsibility and Environmental Management, 30(2), 574–588. https://doi.org/10.1002/csr.2375

Azmi, Z., & Nuraini. (2020). Emisi Karbon dan Akuntansi Manajemen (Tinjauan terhadap pengungkapannya dan corporate governance). In R. Anugerah (Ed.), Bunga Rampai Tata Kelola dan Akuntabilitas (1st ed.). Jurusan Akuntansi FE UR.

Brink, M., Hengeveld, G. M., & Tobi, H. (2020). Interdisciplinary measurement: A systematic review of the case of sustainability. Ecological Indicators, 112, 106145. https://doi.org/10.1016/j.ecolind.2020.106145

Burhany, D., Novianty, I., & Suwondo, S. (2021). Pengukuran Kinerja Lingkungan dengan Sustainability Balanced Scorecard: Seimbang, Komprehensif, dan Strategis. Jurnal Riset Akuntansi Dan Keuangan, 9(1), 149–164.

Cöster, M., Dahlin, G., & Isaksson, R. (2020). Are They Reporting the Right Thing and Are They Doing It Right?—A Measurement Maturity Grid for Evaluation of Sustainability Reports. Sustainability, 12(24), 10393. https://doi.org/10.3390/su122410393

DiMaggio, J., & Powell, W. (1983). The Iron Cage Revisited: Institutional Isomorphism and Collective Rationality in Organizational Field. American Sosiological Review, 48(2), 147–160.

Dissanayake, D. (2021). Sustainability key performance indicators and the global reporting initiative: usage and challenges in a developing country context. Meditari Accountancy Research, 29(3), 543–567. https://doi.org/10.1108/MEDAR-08-2019-0543

Elkington, J. (1998). Cannibals with Forks: The Triple Bottom Line of 21st Century Business. New Society Publishers.

Figge, F., Hahn, T., Schaltegger, S., & Wagner, M. (2022). The Sustainability Balances Scorecard - Theory and Application of a Tool for Value-Based Sustainability Management. Greening of Industry Network Conference.

Fitriani, D., & Putra, A. (2022). Systematic Literature Review (SLR): Eksplorasi Etnomatematika pada Makanan Tradisional. Journal of Mathematics Education and Learning, 2(1), 18. https://doi.org/10.19184/jomeal.v2i1.29093

Gbolarumi, F. T., Wong, K. Y., & Olohunde, S. T. (2021). Sustainability Assessment in The Textile and Apparel Industry: A Review of Recent Studies. IOP Conference Series: Materials Science and Engineering, 1051(1), 012099. https://doi.org/10.1088/1757-899X/1051/1/012099

Ghozali, I. (2020). 25 Grand Theory: 25 teori besar ilmu manajemen, akuntansi, dan bisnis (untuk landasan teori skripsi, tesis, dan disertasi). Yoga Pratama.

Hristov, I., & Chirico, A. (2019). The Role of Sustainability Key Performance Indicators (KPIs) in Implementing Sustainable Strategies. Sustainability, 11(20), 5742. https://doi.org/10.3390/su11205742

Kaplan, R., & Norton, D. (1996). The Balanced Scorecard - Measures that Drive Performance. Harvard Business School Press.

Meyer, J., & Rowan, B. (1977). Institutional Organizations: Formal Structure as Myth and Ceremony. American Journal of Sociology, 340–363.

Mio, C., Costantini, A., & Panfilo, S. (2022). Performance measurement tools for sustainable business: A systematic literature review on the sustainability balanced scorecard use. Corporate Sosial Responsibility and Environmental Management, 29(2), 367–384. https://doi.org/10.1002/csr.2206

Nichola, A., & Septiani, A. (2019). Analisis Pengungkapan Indikator Kinerja dalam Sustainability Reporting Perusahaan Pertambangan Besar di Indonesia. Diponegoro Journal of Accounting, 8(2), 1–13.

Pham, D. C., Do, T. N. A., Doan, T. N., Nguyen, T. X. H., & Pham, T. K. Y. (2021). The impact of sustainability practices on financial performance: empirical evidence from Sweden. Cogent Business & Management, 8(1). https://doi.org/10.1080/23311975.2021.1912526

Ponomarenko, T., Nevskaya, M., & Marinina, O. (2020). An Assessment of the Applicability of Sustainability Measurement Tools to Resource-Based Economies of the Commonwealth of Independent States. Sustainability, 12(14), 5582. https://doi.org/10.3390/su12145582

Rosati, F., & Faria, L. G. D. (2019). Addressing the SDGs in sustainability reports: The relationship with institutional factors. Journal of Cleaner Production, 215, 1312–1326. https://doi.org/10.1016/j.jclepro.2018.12.107

Serzante, M., & Khudozhnyk, A. (2023). Reviewing Sustainability Measurement Methods for Enterprises. Sustainability, 15(21), 15514. https://doi.org/10.3390/su152115514

Spallini, S., Milone, V., Nisio, A., & Romanazzi, P. (2021). The Dimension of Sustainability: A Comparative Analysis of Broadness of Information in Italian Companies. Sustainability, 13(3), 1457. https://doi.org/10.3390/su13031457