Measuring what matters: ESG metrics simplified

You can’t manage what you don’t measure. A simple guide to selecting the right ESG indicators.

A few weeks ago, I sat with the leadership team of a mid-sized Nigerian manufacturing company eager to “start ESG”. They had passion, good intentions, and even a few sustainability initiatives already in motion.

But when I asked a simple question, ‘How are you measuring your impact?’ The room fell silent.

This is the challenge many organisations across Nigeria and Africa face today. ESG is no longer a conversation about intent; it is about evidence. And evidence requires measurement.

The truth is simple: you cannot manage what you do not measure.

Yet, for many business leaders, ESG metrics feel overwhelming: a maze of frameworks, indicators, and reporting standards. The good news is that it doesn’t have to be complicated. What matters is not measuring everything, but measuring what truly matters.

Let us simplify it.

Start with strategy, not spreadsheets.

The first mistake companies make is jumping straight into metrics without clarity on priorities. ESG measurement must be anchored in your business strategy.

For a cement company operating in Ogun State, environmental metrics such as carbon emissions and energy efficiency should be front and centre. For a financial services firm in Lagos, governance, data privacy, and ethical lending practices may take precedence. For an agribusiness operating in Kaduna, social metrics such as community impact and labour practices are critical.

In other words, ESG is not one-size-fits-all.

Before selecting metrics, ask: What are the most material ESG issues for our business, our stakeholders, and our operating environment?

Focus on materiality

Materiality is the discipline of identifying what truly matters. It ensures that your ESG efforts are not performative but purposeful.

Across Africa, we see clear patterns:

-Environmental priorities: energy use, water management, deforestation.

-Social priorities: youth employment, gender inclusion, community relations.

-Governance priorities: transparency, anti-corruption, board accountability.

Take the example of a palm oil company in Cross River. Measuring hectares reforested, biodiversity protection, and community livelihood programmes will be far more impactful than generic sustainability disclosures.

Materiality brings focus. Focus drives impact.

Keep it simple and actionable

One of the biggest myths about ESG is that you need hundreds of metrics. You don’t.

In fact, the most effective ESG strategies are built on a small set of clear, consistent indicators.

A practical approach for many Nigerian businesses is to start with 8–12 core metrics across the three pillars:

Environmental

1. Energy consumption (and percentage from renewable sources)

2. Greenhouse gas emissions

3. Water usage

Social

1. Gender diversity across the workforce and leadership

2. Employee health and safety incidents

3. Community investment and impact

Governance

1. Board composition and independence

2. Ethics and compliance breaches

3. ESG oversight at the board level

These are not abstract numbers. They are decision-making tools.

-Tracking energy consumption can directly inform cost-saving initiatives.

-Monitoring gender diversity can shape recruitment and leadership development strategies.

-Measuring compliance incidents can strengthen internal controls.

Metrics should not sit in reports; they should drive action.

Leverage what you already have

Many organisations underestimate how much data they already possess. Finance teams track costs. HR tracks workforce data. Operations track production and efficiency.

The opportunity lies in connecting these existing data points to ESG outcomes.

For example, a logistics company already tracking fuel consumption can easily translate that into emissions data. A bank already collecting customer data can assess financial inclusion metrics. A manufacturing firm already monitoring waste can track recycling and circularity.

ESG measurement does not always require starting from scratch. It often requires seeing differently.

Align with Recognised Frameworks, But Don’t Be Overwhelmed.

Global frameworks such as GRI, SASB, and the emerging ISSB standards provide useful guidance, but they can feel complex.

My advice to African businesses is this: use these frameworks as a compass, not a constraint.

Start small. Align where it makes sense. Build progressively.

Regulators across Africa, including Nigeria, are moving toward more structured ESG reporting. The companies that begin measuring now, even in simple ways, will be better prepared for what is coming.

Build a culture of accountability

Metrics alone do not drive change; accountability does.

ESG indicators should be embedded into performance management systems. Leadership teams must own specific targets. Progress should be reviewed regularly, just like financial performance.

In one leading Nigerian FMCG company I worked with, tying sustainability targets to executive performance transformed ESG from a “nice-to-have” into a business imperative.

What gets measured gets managed, and what gets managed gets done.

From measurement to meaning

Ultimately, ESG metrics are not about reporting; they are about responsibility.

They tell the story of how a business uses resources, impacts people, and governs itself. They provide clarity to investors, confidence to regulators, and trust to communities.

But more importantly, they provide leaders with the insight needed to make better decisions.

As African economies grow and global expectations evolve, the ability to measure ESG performance will increasingly define competitive advantage.

The question is no longer whether to measure ESG. It is how well you do it.

Because in the end, measuring what matters is how we build businesses that last and legacies that matter.

 

Sarah Esangbedo Ajose-Adeogun is the Founder and Managing Partner at Teasoo Consulting Limited, a foremost ESG consulting firm. She is a former community content manager at Shell Petroleum Development Company and served as the special adviser on strategy, policy, projects, and performance management to the Government of Edo State. She is also the host of the #SarahSpeaks podcast on YouTube @WinningBigWithSarah, where she shares insights on leadership, strategy, and sustainable growth.