Sustainability Strategy Map and Integrated Sustainability Performance Scorecard Framework

Abstract

This conceptual paper addresses the gap in integrating sustainability into organizational strategy and performance measurement. While many organizations recognize the importance of sustainability, they often struggle to translate this recognition into actionable strategies and effective performance management. Drawing on the ethical sustainability governance framework (Suhardjo et al., 2024), this study proposes a sustainability strategy map and integrated sustainability performance scorecard framework as an approach to integrating sustainability into business operations and decision-making. Building on the balanced scorecard and strategy map, this framework incorporates environmental, social, cultural, and technological dimensions alongside financial considerations. This framework enables organizations to map material sustainability issues to strategic objectives and measures performance against these objectives. To demonstrate the practical application of this framework, this study analyzes the sustainability practices of three global companies: Kao, PepsiCo, and Schneider Electric, to assess their alignment with the ethical sustainability governance framework and how they might fit the proposed framework. Through the analysis of case studies, we aim to provide insights into how organizations can implement sustainability initiatives and measure their impact. It provides a practical tool for aligning sustainability initiatives with overall business strategy, fostering the establishment of sustainable business models and a culture of sustainability, and creating long-term value. 

Keywords: Materiality, Sustainability Strategy, Sustainability Performance, Sustainability Reporting, Balanced Scorecard