Key performance indicator

(KPI).

A measure of performance.

Such measures are used to help an organisation define and evaluate how successful it is, typically in terms of making progress towards its long-term organisational goals.

KPIs can be quantitative, for example error rates.

KPIs can also be judgement-based, for example surveys of customer satisfaction.

Benchmarking is often applied to KPIs, to learn from past performance, and improve future performance.

KPIs can also be linked with external transactions, for example sustainability-linked financing.

KPIs in ESG finance deal to evolve and broaden

"The standout deal in this year’s ESG Finance category – which was also chosen by the judges as this year’s Overall Deal of the Year – was a sustainability-linked supply-chain finance (SCF) solution by Tesco...

With emissions from products and the supply chain accounting for 90% of Tesco’s global emissions footprint, the programme aims to accelerate improvements in supplier behaviour and emissions footprints...

While the initial focus is on the ‘E’ element of ESG, the programme’s supporting KPIs are intended to evolve in the coming years and broaden into S and G, particularly when the sourcing for Tesco’s clothing brand comes into scope."

ACT Deals of the Year Awards 2021: Overall winner.

See also

• Balanced scorecard
• Benchmarking
• Capture ratio
• Carbon footprint
• Environmental KPI
• Environmental, social and governance (ESG)
• Financial ratio
• Goal congruence
• Key
• Key control indicator
• Key risk indicator
• Net promoter score (NPS)
• Objectives and key results (OKR)
• Performance
• Report card
• Service level agreement
• Supply chain
• Supply chain finance (SCF)
• Sustainability linked financing
• Treasury performance management – waste of time or a necessity?
• Win rate

Other resource

• Peak performance, Paul Higdon, The Treasurer