What is one of the three indicators used to assess how well a company manages its sustainability impacts?

Peer performance is an important indicator used to assess how effectively a company manages its sustainability impacts. This measure evaluates a company's sustainability practices in comparison to those of its competitors within the same industry. By analyzing peer performance, a company can identify best practices, understand where it stands relative to others, and recognize areas needing improvement.

This benchmarking process is crucial for fostering a culture of accountability and driving progress towards better sustainability outcomes. It promotes competitive advantage and encourages innovation in sustainable practices. Companies often look at peer performance to ensure they are not lagging behind in addressing environmental, social, and governance (ESG) factors, which are becoming increasingly important to stakeholders.

Market share, industry reputation, and employee satisfaction may provide insights into different aspects of a company’s performance, but they do not specifically focus on the effectiveness of sustainability practices in a direct comparative manner. Hence, peer performance stands out as a specifically relevant indicator for assessing sustainability impacts.