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7 Keys to defining and achieving ESG goals from finance

Updated on
July 7, 2025

These are the 7 keys to defining and achieving ESG goals from finance in 2025:

  1. Link each ESG goal with a specific indicator

  2. Connect ESG goals with financial KPIs

  3. Define short-, medium-, and long-term targets

  4. Align your goals with international standards

  5. Make ESG compliance part of everyday financial operations

  6. Assign clear internal responsibilities

  7. Use digital solutions to automate and measure

More and more companies are aligning their ESG goals with their business strategy. They don’t do it for show, they do it because they want to remain competitive.

Measuring environmental, social, and governance impact is not just an obligation to comply with regulations. It’s a tool to make smarter decisions, reduce costs, identify opportunities, and position better with customers, investors, and regulators.

Not having control over this data puts you at a disadvantage. And if others are already measuring and you are not, you’re late.

In this article, we will see how to turn ESG goals into a real strategic lever for your company. No empty speeches. We go straight to what matters.

The 7 keys to defining and achieving ESG objectives in Finance

1. Link each ESG goal to a concrete indicator

If you can't measure it, it's worthless. It's that simple. An ESG goal without data is just a nice intention.

We need specific indicators that tell us whether we're on track or wasting time. We're talking about things like emissions per unit produced, percentage of audited suppliers, or pay equity ratio. No vagueness.

Only with clear indicators can we make data-driven decisions, not just follow gut feelings.

2. Connect ESG goals with financial KPIs

There is no sustainability without profitability. If we want an ESG goal to carry weight within the company, it must be tied to numbers that matter.

Does it reduce costs? Improve margins? Lower operational or reputational risk? Then it makes sense to integrate it into the budget.

That’s the only way ESG stops being just a showcase report and becomes part of real strategy.

3. Set short, medium, and long-term targets

Thinking big is fine, but without knowing how to get there or when to review progress, it becomes just talk.

That’s why we need staggered goals. Short-term to start steering the ship. Medium-term to see tangible results. Long-term to build deep-rooted change.

This way we can adjust what’s needed and show real progress at every stage.

4. Align your goals with international standards

No need to reinvent the wheel. Frameworks like CSRD, GRI, or SBTi already show us the way.

Using them not only gives us internal clarity, it also brings external credibility. With investors, banks, clients, or whoever is watching.

Plus, they help us report our actions in an organized way without duplicating effort.

5. Make ESG compliance part of daily financial routines

This isn’t a side project. It belongs in the forecasting, the planning, the decision-making.

If we keep treating ESG like a “side initiative,” it won’t take off. It must be part of the annual budget, profitability analyses, investment decisions.

Only then does it become a growth lever, not just another expense.

6. Assign clear internal owners

This isn’t just a sustainability issue, it’s a business matter. And as such, it needs owners with decision-making power.

Finance must lead. Not because it's about numbers, but because finance decides what gets funded, what moves forward, and what doesn’t.

Without internal leadership and follow-up, ESG goals fade away.

7. Use digital solutions to automate and measure

We’re not going to progress using endless spreadsheets and scattered emails. Managing ESG data without tech is a waste of time.

That’s where we come in. We’re not auditors or consultants. We’re a Solution for companies that need to collect, organize, and distribute all their ESG information efficiently, securely, and easily.

Doesn’t matter if you’re working with EINF, CSRD, Taxonomy, or SBTi. With well-organized data, you can use it wherever needed.

ESG Goals: The New Strategic Axis

This is no longer an isolated topic. ESG goals have gone from the corner of a sustainability PowerPoint to a key part of financial strategy.

Why? Because without clear data on environmental, social, and governance impact, there’s no way to make well-informed decisions. Reliable ESG data is now fundamental to maintaining competitiveness and credibility.

Compliance, financing, and maintaining competitiveness now depend on more than just traditional numbers. ESG is part of the equation.

What it means to set ESG goals from Finance

1. Turning ESG strategy into measurable metrics

Talking about commitments is useless unless we turn them into numbers we can track and compare.

This means translating ESG strategy into concrete data: energy consumption, employee turnover rate, emissions per unit produced. Whatever applies in each case.

2. Aligning ESG goals with financial KPIs

If there’s no economic impact, there’s no real interest. Each ESG goal must be tied to a financial KPI that justifies it.

That way, ESG stops being seen as a cost and becomes an investment that boosts profitability, reduces risk, or opens up new markets.

3. Integrating ESG into planning and budgeting processes

This goes straight into Excel, not as a footnote at the end.

ESG goals must be integrated into the annual plan, forecasts, and budget allocations. If it’s not budgeted, it won’t happen. Simple as that.

What Does ESG Mean? Essential Glossary

Before diving into how to define and achieve ESG goals from a finance perspective, it’s key to get a handle on the foundational terms. 

You don’t need to be an expert, but you do need to clearly understand what ESG means in practice and how it directly impacts financial decision-making.

This glossary is designed for CFOs who are starting to integrate sustainability into their day-to-day. No fluff, just what you need to move confidently in this new playing field.

ESG (Environmental, Social and Governance)

The framework that brings together three core areas of sustainability: environmental impact, social responsibility, and corporate governance

In financial terms, ESG covers non-financial risks that affect profitability, company valuation, and access to capital. Ignoring ESG today means operating with blind spots.

ESG Goals

These aren’t vague promises for slide decks. They’re specific, measurable targets that outline how your company plans to improve its environmental, social, or governance performance. 

When well-defined, ESG goals become strategic levers, helping you cut costs, reduce risk, and strengthen market position.

Materiality

Not everything matters equally. Materiality is about identifying which ESG topics truly impact your business and your stakeholders (customers, regulators, investors, etc.). 

If something isn’t material, it’s not a priority. And if you don’t prioritize, you’ll waste resources on actions that deliver no value.

ESG KPI (Key Performance Indicator)

A good ESG KPI turns sustainability into trackable numbers: emissions per unit produced, percentage of renewable energy use, executive gender balance, etc. 

The goal is to align these indicators with your business priorities and ensure they’re monitorable, comparable, and reportable without making it up as you go.

CSRD (Corporate Sustainability Reporting Directive)

The new EU directive that requires thousands of companies to report ESG data that’s structured, traceable, and auditable. If your reporting systems aren’t ready for this, you’ll fall behind. 

And no, a pretty PDF won’t cut it, this is about data that must align with your financial reporting.

SBTi (Science Based Targets initiative)

The go-to standard for validating whether your carbon reduction targets are aligned with climate science

Having SBTi-approved targets boosts investor confidence, improves access to sustainable finance, and protects you from greenwashing claims. In today’s context, it’s a trust signal.

EU Taxonomy

An official EU classification that defines which economic activities are “sustainable.” Why it matters: banks and investors use this to decide who gets funding and under what terms

If your activities don’t meet these criteria, you could miss out on key financing opportunities.

Carbon Footprint

A measurement of all greenhouse gas emissions generated by your company, product, or process. 

It’s one of the most commonly requested ESG metrics and a critical first step toward any meaningful reduction plan. Measuring it accurately helps save energy, meet regulations, and build credibility.

EINF (Non-Financial Reporting Statement)

A report formerly required for certain companies in Spain and Europe to disclose ESG impacts. Now being replaced by CSRD, which expands and strengthens the reporting requirements. 

If you were already doing EINF, it’s time to level up. If not, now’s the time to get started.

Why ESG Goals Matter More Than Ever

This is no longer an optional topic. ESG goals have become a requirement if we want to stay competitive and prepared for what’s coming.

It’s becoming clear to everyone: if we don’t measure, we can’t advance.

1. They are required by regulators and investors

Regulations keep growing, and what was once "recommended" is now mandatory. Without clear goals, you won’t be able to report what is demanded.

Also, investors are already demanding solid ESG data. Without it, there is no financing. And if you get it, it will cost you more.

2. They improve corporate perception and reputation

No one cares about a nice speech if it’s not backed by data. Having clear and measurable ESG goals changes the narrative.

It shows we make informed decisions, that we are transparent, and that we have control over what we do as a company.

3. They facilitate strategic decision-making based on data

When ESG goals are well-defined, we can cross them with financial and operational data. And that’s when they truly add value.

They help us decide more clearly, prioritize better, and anticipate risks or changes. And that, in any context, is an advantage.

What types of ESG goals exist

Not all ESG goals are the same. To have a clear view, we need to divide them according to the type of impact we want to measure and manage.

Here are the three main categories:

1. Environmental goals

Here we talk about concrete data like CO₂ emissions, energy consumption, or waste generation. Goals like reducing your Carbon Footprint can bring measurable impact without compromising business efficiency.

These goals allow us to understand the physical impact of our operations and find ways to reduce it without compromising business efficiency.

2. Social goals

They range from diversity and working conditions to the impact we generate in the communities where we operate.

This is not about decorative CSR. It’s about having real metrics on how we manage people and how that affects our competitiveness and internal culture.

3. Governance goals

Here we measure how decisions are made in the company: ethics, transparency, leadership structure, prevention of conflicts of interest.

Poor governance will explode sooner or later. That’s why it’s key to define clear goals and have data showing everything is under control.

Examples of ESG KPIs by Sector

Each sector has different priorities, which means ESG KPIs must also be tailored. It’s not about copying standard metrics, it’s about identifying the ones that truly reflect your impact and help you make smarter decisions.

Here are some common examples to guide you in choosing the right indicators for your business:

In Industry

  • CO₂ emissions per ton produced

  • Water consumption per manufactured unit

  • Material recycling or reuse rate

  • Energy use per production line

  • Percentage of suppliers audited under ESG criteria

In Services

  • Annual employee turnover rate

  • Percentage of women in leadership positions

  • Customer satisfaction index

  • Training hours per employee

  • Compliance rate with diversity and inclusion policies

In Technology

  • Energy consumption of data centers or servers

  • Percentage of securely managed personal data

  • Gender and role-based pay gap

  • Resolution rate of cybersecurity incidents within deadline

  • Use of renewable energy in digital operations

These are just starting points. The key is to select ESG indicators that are measurable, relevant to your strategy, and easy to report.

Because if a KPI doesn’t help you make decisions, it’s just a number on a slide.

What Not to Do: Common Mistakes When Setting ESG Goals from Finance

Before setting your ESG goals, it’s worth reviewing the most common pitfalls that often derail otherwise well-intentioned strategies. Here are the mistakes we see most often:

Not Measuring

If there’s no KPI behind it, you’re not managing, you’re guessing. ESG goals without clear metrics lose traction fast. You can’t improve what you don’t measure, and you can’t justify decisions without solid data.

Separating Goals from the Budget

A goal without allocated budget isn’t a goal, it’s a wish. If it’s not built into the annual forecast, planning, and investments, no one is going to prioritize it.

Setting Goals Without Involving the Team

ESG isn’t just Finance’s job. Ops, Procurement, HR, IT, everyone holds a piece of the puzzle. If you set ESG goals in isolation, expect poor execution and little buy-in.

Setting Unrealistic Targets

Ambition is good, but if the goals are out of reach given your resources and timeline, you’ll only create frustration. ESG goals should stretch you, but they must also be realistic.

Avoiding these common mistakes from the start will save you time, resources, and stress. Because ESG strategies usually don’t fail from lack of intent, they fail from lack of structure.

How to define effective (and realistic) ESG goals

Setting ESG goals just for the sake of it doesn’t work. If we want them to bring real value, they must be relevant, measurable, and connected to the business.

This is the minimum we need to do:

1. Identify the material topics for your company

Not everything applies to everyone. The first step is to know what topics matter according to your sector, activity, and risks.

This is where materiality comes in: detecting which topics are critical for the business and stakeholders. If there is no impact inside or outside, it’s not a priority.

2. Use recognized standards like GRI, SBTi, CSRD

No need to invent anything. Frameworks exist to help you define solid goals aligned with market demands.

GRI, SBTi, or CSRD not only structure the information but also facilitate reporting and improve your position with investors, clients, and regulators.

These are among the sustainable finance frameworks that provide credibility and clarity.

3. Involve all key areas from the beginning

This is not just about sustainability or Finance. If we want it to work, we need Purchasing, HR, Operations, Legal... everyone has data and makes decisions.

Defining ESG goals without them is like making a budget without talking to anyone on the team. It will go wrong.

Mental Checklist: Is Your ESG Goal Solid?

If you want a quick way to validate whether your ESG goal is well-structured and aligned with your financial strategy, ask yourself these key questions:

  • Is it linked to a clear KPI?
    If you can’t measure it, you can’t manage it.

  • Is there someone responsible for it?
    If no one owns it, it won’t move forward.

  • Can it be measured with current data?
    A goal based on unavailable or unreliable data is a dead end.

  • Is it integrated into the financial plan?
    If it’s not in the budget, it’s not a true priority.

  • Does it have a defined target date?
    Without a deadline, you’ll never know if you’re on track.

If you answered “yes” to all of these, your ESG goal is on the right track. If not, it’s time to tweak it. The goal isn’t perfection, it’s clarity, action, and value.

Why Dcycle helps you achieve your ESG goals

Good intentions are not enough. For ESG goals to work, we need reliable data, constant monitoring, and the ability to report without wasting time.

That’s where we come in.

1. Automatic data collection from different sources

No more chasing Excel files or loose emails. We connect with your systems and data sources so all ESG information arrives automatically in one place.

This avoids errors, saves time, and gives us full control from minute one.

2. Real-time tracking with customized dashboards

Seeing data once a year is useless. We need to know how we’re doing in real time, with dashboards tailored to each area.

This allows Finance and the rest of the team to make agile decisions without waiting for someone to finish a report.

3. Reports aligned with ESG regulations and audits

CSRD, EINF, SBTi, Taxonomy, ISOs... no matter the framework required. Our solution generates reports already structured according to the necessary standards, with the data you need.

We’re not auditors or consultants. We’re a Solution for companies wanting to work efficiently, without hassles or external dependencies. You have control, we give you the tool.

Frequently Asked Questions (FAQs)

How do I start defining ESG goals from Finance?

The first step is knowing what topics truly impact the business. We do a materiality analysis, connect with the data we already have, and start translating ESG strategy into real metrics.

From there, we define targets that can be integrated into the budget and financial tracking.

What standards should I follow to set them?

It depends on your sector and what your stakeholders demand, but the most used are CSRD, GRI, and SBTi.

These frameworks not only give structure but also help with reporting and positioning better with investors and regulators.

How do I know if my ESG goals are realistic?

If you can’t measure them or no one can execute them, they are not realistic. We must set goals aligned with the company’s resources, timelines, and operational capacity.

And always validate them over time to adjust what’s necessary.

What is the CFO’s role in monitoring ESG goals?

The CFO must lead the process from the financial side. They ensure that ESG goals are integrated into planning, budgeted, and followed up like any other KPI.

And above all, that their real impact on the business is demonstrated.

What digital tools help measure and control these goals?

A solution like ours. At Dcycle we are not auditors or consultants: we are a Solution for companies that need full control over their ESG data.

We automatically collect information, organize it, and put it in the formats you need, whether for CSRD, ISOs, SBTi, or whatever comes next. No hassle, no duplicated work.

What happens if I set ESG goals but don’t link them to KPIs?

You’re basically wasting your time. Without a KPI to track progress, you can’t know if you’re improving or not. 

And what doesn’t get measured, doesn’t get managed. You also won’t be able to report anything meaningful to investors, stakeholders, or your board.

How do I know if an ESG goal will have financial impact?

Ask yourself whether the goal reduces costs, improves margins, opens up markets, or lowers risks. If the answer is yes, it has financial impact. 

And if you’re not sure, dig into the data. ESG goals should support your economic strategy, not sit off to the side.

Can I start working on ESG without a dedicated team?

Yes. You don’t need a full department to get started, but you do need commitment from Finance and other key teams. You can lean on digital solutions to gather and organize ESG data without the chaos. 

Start with what you’ve got and scale up smartly.

What’s the difference between ESG goals and sustainability commitments?

An ESG goal is specific, measurable, has a deadline, and someone responsible for it

A sustainability commitment is often more general or aspirational. If you want to be taken seriously (and stay compliant), you need real targets, not just good intentions.

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Frequently Asked Questions (FAQs)

How Can You Calculate a Product’s Carbon Footprint?

Carbon footprint calculation analyzes all emissions generated throughout a product’s life cycle, including raw material extraction, production, transportation, usage, and disposal.

The most recognized methodologies are:

  • Life Cycle Assessment (LCA)
  • ISO 14067
  • PAS 2050

Digital tools like Dcycle simplify the process, providing accurate and actionable insights.

What Are the Most Recognized Certifications?
  • ISO 14067 – Defines carbon footprint measurement for products.
  • EPD (Environmental Product Declaration) – Environmental impact based on LCA.
  • Cradle to Cradle (C2C) – Evaluates sustainability and circularity.
  • LEED & BREEAM – Certifications for sustainable buildings.
Which Industries Have the Highest Carbon Footprint?
  • Construction – High emissions from cement and steel.
  • Textile – Intense water usage and fiber production emissions.
  • Food Industry – Large-scale agriculture and transportation impact.
  • Transportation – Fossil fuel dependency in vehicles and aviation.
How Can Companies Reduce Product Carbon Footprints?
  • Use recycled or low-emission materials.
  • Optimize production processes to cut energy use.
  • Shift to renewable energy sources.
  • Improve transportation and logistics to reduce emissions.
Is Carbon Reduction Expensive?

Some strategies require initial investment, but long-term benefits outweigh costs.

  • Energy efficiency lowers operational expenses.
  • Material reuse and recycling reduces procurement costs.
  • Sustainability certifications open new business opportunities.

Investing in carbon reduction is not just an environmental action, it’s a smart business strategy.