Putting Stewardship to Work: Tracking Progress on the Five Environmental Stewardship & Circularity (ESC) Standards

Clear, business-relevant metrics for footprint tracking, strategy execution, circular design, mitigation, and supplier collaboration

Real sustainability leadership requires more than good intentions. The Environmental Stewardship & Circularity (ESC) standards, developed by B Lab, offer a concrete roadmap for turning climate commitments into operational results, whether that means reducing emissions, designing products for reuse, or partnering with suppliers to scale change.

The ESC framework centers on two powerful levers: environmental stewardship (minimizing harm and regenerating ecosystems) and circularity (keeping materials in use and waste out of the system). Together, they help companies build resilience, reduce risk, and lead with transparency.

But to deliver lasting results, companies need more than a framework. They need ways to track progress, evaluate what’s working, and hold themselves accountable across departments, products, and supply chains.

This post outlines clear, actionable metrics for each of the five ESC pillars. Whether you’re just getting started or strengthening an existing program, these indicators can help you measure what matters, improve over time, and show stakeholders the full value of your sustainability efforts.

ESC1: Environmental Impact Awareness

Understanding your environmental footprint is the foundation for meaningful action. ESC1 challenges companies to assess their actual and potential impacts—across waste, energy, water, biodiversity, and more—so they can identify environmental risks before they escalate.

This standard calls for detailed diagnostics across operations and the supply chain: Where are emissions and waste most concentrated? Are Scope 3 emissions (from suppliers and downstream activities) accounted for? Which facilities are near ecologically sensitive or water-stressed areas? Are animal welfare and biodiversity risks being tracked?

When companies measure and share this data consistently, they reduce blind spots, improve decision-making, and build stakeholder trust.

How to measure progress on ESC1

To meet ESC1, companies must build reliable systems for collecting, reviewing, and using environmental data—not just for compliance, but for proactive risk management. These metrics offer a starting point for understanding and improving your environmental footprint:

1. % of operations with environmental risk assessments. Start with a facility inventory. Document which sites have completed environmental risk assessments within the past 12–24 months. These should identify current and future threats such as flooding, emissions hotspots, or habitat encroachment. Aim for full coverage across owned operations and major partners.
2. % of emissions and waste mapped across the full value chain (Scopes 1, 2, and 3). Use a greenhouse gas (GHG) accounting tool or qualified partner to track emissions:

• Scope 1: direct emissions (e.g., fuel combustion)
• Scope 2: indirect emissions from purchased energy
• Scope 3: indirect emissions from suppliers, product use, and disposal

For waste, track volume by category (e.g., hazardous, recyclable) and disposal method. Coverage across all three scopes and all waste streams is key for impact visibility.

3. % of product lines with lifecycle assessments (LCAs). LCAs help quantify a product’s impact across its entire lifecycle, from sourcing and production to use and disposal. Prioritize products with high sales volume or environmental risk. Document the scope, methodology, and assumptions for each assessment to ensure comparability over time.
4. % of facilities located in or near ecologically sensitive or water-stressed areas. Use geographic risk tools (e.g., Aqueduct for water, IBAT for biodiversity) to assess whether your facilities or suppliers are operating in high-risk zones. This information should feed into location strategy, investment planning, and mitigation priorities.
5. % of environmental data reviewed and updated within the past 12 months. Monitor how frequently key data points (energy, water, waste, and emissions) are updated. Refreshing data quarterly or biannually indicates environmental KPIs are used for real-time planning, not just retrospective reporting.
6. Geographic or supplier-specific risk exposure. Map procurement spend and supplier locations to environmental risk. Use heatmaps to flag high-impact categories (e.g., textiles from water-scarce regions, agriculture near deforestation zones). This helps prioritize engagement and investment.

These indicators build the foundation for environmental accountability. When environmental data is reliable, current, and cross-functional, it moves from a reporting exercise to a strategic asset, powering smarter decisions and reducing long-term risk.

ESC2: Environmental Strategy for Ecological Thresholds

Assessment without action is inertia. ESC2 challenges companies to transform insight into strategy: aligning operations with science-based targets, global climate goals, and ecological thresholds.

This standard is about designing for the long term. It calls for comprehensive environmental strategies supported by leadership, embedded across departments, and reviewed regularly. These plans might include biodiversity transition goals, water stewardship targets, or pathways to phase out carbon-intensive operations.

By integrating environmental strategy into business planning, governance, and employee enablement, companies build resilience and demonstrate leadership in a shifting regulatory and resource landscape.

How to measure progress on ESC2

ESC2 metrics assess whether your strategy is in place, implemented, and producing results. These indicators track both plan quality and execution outcomes:

1. % of business activities aligned with science-based targets (e.g., SBTi). Identify which operations, product lines, or facilities are covered by targets validated by initiatives like SBTi. Track this as a share of total business activity, and aim to expand it over time.
2. ESG reporting coverage across operations and the supply chain. Inventory which sites, subsidiaries, or supplier tiers are included in your ESG reporting. Higher coverage supports accountability and drives alignment across the value chain. If you’re missing data from specific regions or partners, flag these for follow-up.
3. Progress against reduction targets (GHGs, water, land use, energy). Track actual reductions versus goals. Note whether progress is absolute (total reductions) or relative (e.g., per unit of revenue). Highlight success stories and identify lagging areas to guide future strategy.
4. Ratio of revenue from ecologically aligned products or services. Classify products based on sustainability criteria (e.g., low-carbon, circular, water-efficient) and track what percentage of total revenue they generate. Monitor how this ratio evolves as the product portfolio shifts.
5. % of clients or investments evaluated for environmental risk. If applicable, record the percentage of major clients, projects, or investments screened for environmental impact. Document the mitigation steps taken and review their effectiveness over time to close the loop.
6. % of relevant employees trained on environmental strategy. Identify the teams responsible for implementation (e.g., product, supply chain, operations) and track who’s received training on the company’s strategy and how it applies to their role. Use follow-up surveys to assess comprehension and behavior change.

Together, these metrics show whether your environmental strategy is more than a vision. They help track execution, surface areas for course correction, and ensure that ecological alignment becomes a durable part of how the business operates.

ESC3: Circularity Integration

Circularity means rethinking how resources flow through your business, from sourcing and design to recovery and reuse. ESC3 challenges companies to move beyond linear take-make-waste models and instead design systems that keep materials in motion.

This standard addresses the full product and packaging lifecycle. Companies are expected to reduce reliance on virgin, non-renewable inputs; increase use of sustainable or recycled materials; and design for longevity, reuse, or regenerative decomposition. Circularity also extends to recovery systems: supporting infrastructure and services that make reuse and recycling not just possible, but practical.

Whether through modular product design, compostable packaging, or take-back initiatives, circular practices improve material efficiency, lower long-term costs, and open up new revenue models tied to sustainability.

How to measure progress on ESC3

Circularity demands intentional design choices, infrastructure investments, and ongoing iteration. These metrics help track how far you’ve moved from extraction and disposal toward closed-loop systems:

1. % of total materials reclaimed or reused across products and packaging. Calculate the percentage of materials that are reclaimed (e.g., internal scrap, returned goods) or reused (e.g., refurbished components) as part of your production or packaging processes. Start with core products or facilities and expand as your tracking systems mature.
2. % of packaging that is reusable, recyclable, or compostable. Audit packaging formats and evaluate them against third-party criteria (e.g., How2Recycle, EN 13432). Categorize by type: primary (consumer-facing), secondary (grouped), and tertiary (transport). Track progress toward phasing out non-compliant formats.
3. Reduction in virgin material use over time (especially non-renewables). Use procurement data to calculate the percentage of inputs that are virgin and non-renewable (e.g., petroleum-based plastics, mined metals). Monitor year-over-year reductions and shifts toward recycled or renewable alternatives.
4. % of product portfolio designed for repair, reuse, remanufacturing, or biological recirculation. Conduct a portfolio-level audit and classify products based on their compatibility with circular pathways:

• Repairable or upgradable
• Modular or easy to disassemble
• Eligible for refurbishment or remanufacturing
• Designed for composting or biodegradation

Report this as a percentage of total product lines or SKUs, and track design improvements over time.

5. % of end-user markets with active recovery programs or infrastructure. Map your product distribution against recovery systems: take-back programs, municipal recycling, refurbishment partners, or composting facilities. Define “active” based on accessibility, scale, and customer participation. Prioritize expansion in high-volume or underserved markets.
6. Reduction in material input costs due to circular sourcing or redesign. Measure procurement savings that result from using recycled materials, lightweighting, or eliminating unnecessary packaging. Compare current costs against a pre-circularity baseline. This metric helps connect sustainability with business performance.
7. % of revenue from circular product or service lines. Segment your offerings to isolate revenue from circular models, such as refurbished goods, refillable packaging, product-as-a-service, or closed-loop systems. Track how this share evolves and whether margins are improving alongside impact.

These metrics translate circularity into business terms, highlighting cost savings, resilience, and innovation. By embedding them into product design reviews, supply chain dashboards, and performance evaluations, companies can move from pilots to scalable, system-wide impact.

ESC4: Environmental Action & Mitigation

Strategy only matters if it’s put into motion. ESC4 holds companies accountable for executing their environmental strategies… transparently, consistently, and with measurable outcomes.

This standard focuses on implementation: reducing emissions, restoring ecosystems, mitigating water risk, and responding to environmental incidents. It also emphasizes continuous learning: evaluating progress, adjusting strategies, and publishing results to build stakeholder trust.

Done well, this work not only mitigates environmental harm; it also strengthens brand integrity, reduces compliance and reputational risk, and creates a cycle of learning that supports long-term sustainability leadership.

How to measure progress on ESC4

To meet ESC4, companies must demonstrate that action is underway, that impact is being tracked, and that lessons are driving improvement. These metrics help signal real accountability:

1. $ investment in environmental remediation or offset projects. Track annual spending on mitigation activities: reforestation, wetland restoration, carbon credits, pollution cleanups, or water replenishment. Break down by geography and category. A rising investment can reflect deeper commitment or growing exposure.
2. % reduction in negative environmental indicators year over year. Use your baseline from ESC2 to monitor improvements in key impact areas: GHGs, water, land use, energy, and waste. Track both absolute reductions and intensity-based metrics (e.g., emissions per unit of output). Highlight progress, gaps, and corrective actions.
3. % of operations covered by an Environmental Management System (EMS). EMS systems (such as ISO 14001) help structure ongoing environmental oversight. Track how much of your business operates under a formal EMS, and whether audits are conducted regularly. This metric reflects depth of process and readiness to adapt.
4. % of environmental incidents reported, including response time and remediation outcomes. Log incidents such as spills, deforestation, community complaints, and record how quickly and effectively they were resolved. Over time, aim for fewer incidents, faster resolution, and improved community perception.
5. Evaluation outcomes for environmental, biodiversity, and water strategies. Conduct formal reviews of your strategies at least every three years. Track which goals were met, what changes were made, and how the strategy evolved. Publish key learnings internally and externally.
6. Frequency of updates and leadership engagement with evaluation findings. Document how often environmental strategies are reviewed and who’s involved: executives, boards, or cross-functional task forces. Leadership engagement helps integrate environmental priorities into business decisions.
7. Public reporting cadence, including updates to strategy and results. Measure how frequently you publish updates to your environmental strategy and progress reports (e.g., in ESG reports, websites, or stakeholder briefings). Include not just metrics but also descriptions of challenges, trade-offs, and course corrections. Transparency builds credibility and sets your company apart as a learning organization.

Together, these indicators show whether a company is walking its talk. They also create a feedback loop that turns strategy into execution, execution into insight, and insight into improved performance, year over year.

ESC5: Supplier Collaboration on Environmental Goals

Most environmental impacts don’t happen inside your four walls; they occur upstream, across complex, often opaque value chains. ESC5 expands environmental accountability beyond direct operations, challenging companies to embed sustainability into procurement and partner with suppliers to drive systemic change.

This standard emphasizes traceability, shared accountability, and long-term supplier engagement. That means identifying high-risk raw materials, verifying deforestation-free sourcing, and co-developing mitigation plans and environmental targets with your vendors. These efforts help reduce environmental and reputational risk while improving supply chain resilience and transparency.

Done well, supplier collaboration turns procurement into a lever for innovation and impact (not just cost control).

How to measure progress on ESC5

To meet ESC5, companies must implement systems that assess supplier performance, support improvement, and verify results. These metrics help track progress from evaluation to action:

1. % of suppliers evaluated for environmental performance. Identify your most material suppliers based on spend, volume, or risk profile. Track the percentage evaluated annually using environmental criteria such as emissions reporting, water use, certifications, or compliance records. Use a consistent scorecard or audit tool to enable comparison and accountability.
2. % of Tier 1 suppliers with verified environmental goals. Engage Tier 1 suppliers to establish measurable targets, such as reducing GHG emissions, diverting waste, or improving water use. Track how many have adopted time-bound, verifiable goals, and request progress updates during quarterly or annual reviews. Third-party validation or audit strengthens confidence in reported figures.
3. % of procurement spend aligned with certified green vendors or sustainable sourcing programs. Calculate the portion of your procurement budget allocated to vendors with verified environmental credentials (e.g., FSC, Rainforest Alliance, or ISO 14001) or participation in credible sustainable sourcing programs. This metric shows how deeply sustainability influences purchasing behavior.
4. % of high-risk raw materials traced to their point of origin. For commodities with known environmental risks (e.g., soy, palm oil, rubber, timber), use mapping tools or supplier declarations to track how much volume can be traced back to source. Focus on country of origin, production methods, and supplier tier. Increased traceability enables targeted mitigation.
5. % of raw materials verified as deforestation-free. Track the percentage of high-risk commodities verified (via certification, supplier audit, or satellite data) as deforestation-free. This is especially important for sourcing from countries with weak forest governance. Publicly available verification protocols strengthen trust.
6. % of joint sustainability initiatives in place with key suppliers. Measure how many suppliers you’ve co-developed environmental projects with, such as GHG reduction pilots, packaging innovation, or shared water targets. Track initiative scope, timelines, and results. Formalizing these programs can increase buy-in and accountability on both sides.
7. Progress metrics from supplier mitigation plans. Ask suppliers to share quantitative updates on their environmental initiatives, such as emissions reductions, improved energy efficiency, or land restoration outcomes. Consolidate this data in a shared platform or scorecard, and review progress annually to ensure alignment with your own mitigation goals.

These metrics help companies shift from transactional sourcing to strategic partnership. By embedding environmental expectations into supplier selection and performance reviews, businesses can extend their sustainability impact beyond direct control, and help build the regenerative systems our future depends on.

Metrics Turn the ESC Framework Into Momentum

The five ESC standards provide a blueprint for environmental leadership; but it’s metrics that turn that blueprint into action. They help you establish a baseline, chart your trajectory, and course-correct as conditions change.

Use the indicators above not just to check boxes, but to generate insight, foster alignment, and drive better decisions. Share them across teams to build shared accountability. Report them transparently to stakeholders to earn trust. Revisit and refine them regularly to keep your strategy adaptive and resilient.

When measurement is integrated into the way you operate (and not just the way you report), the ESC framework becomes more than a guide. It becomes a catalyst for continuous improvement, scaled impact, and lasting environmental and business value.

To learn more or start evaluating your company against these standards, visit the B Impact Assessment and explore how B Lab can support your progress toward a more regenerative future.

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Photo by Annemarie Schaepman