Sustainability in portfolio management: from vision to visualisation

With climate and social issues dominating the front pages of newspapers, the issue of how to integrate sustainability into project and portfolio management is becoming increasingly concrete for organisations. In our previous article we discussed how organisations can translate the term sustainability into concrete indicators. In this follow-up article, we discuss how an organisation chooses their own relevant sustainability indicators and translates them to the different levels. Then we will elaborate a little further on our [sustainability] radar diagram; how do you use it to visualise the impact of the project portfolio on sustainability indicators?

Selecting sustainability factors

Choosing relevant sustainability indicators is a crucial first step to effectively integrate sustainability into project management.

1. Vision and core values of the organisation

It all starts with the organisation's vision. This should give a good indication of its ambitions with regard to sustainability. Think for example of terms such as 'environmental awareness' or 'innovation'. By integrating sustainability into the organisation's vision top-down, it becomes a fundamental part of the organisational culture and strategy.

2. Translation into organisational strategy and concrete objectives

The vision is then translated into a concrete organisational strategy. This means making sustainability ambitions practical by integrating them into strategic objectives and plans. For example, if the organisation aims for CO2 neutrality, this will be translated into a SMART-formulated target.

3. Selecting relevant indicators

Based on the organisational strategy, the organisation selects indicators that reflect the degree of contribution to the objectives. These indicators should be measurable and clearly linked to the specific objectives. For each objective, a key word or measurable term is chosen as an indicator. For example, for the objective of improving energy efficiency by 25%, the indicator 'energy efficiency' can be used.

Example: the vision, objectives and indicators of municipality X

Municipality X strives for a sustainable future where welfare, environment and economy are in balance. Our vision is further elaborated in an organisational strategy with corresponding objectives.

1. Energy transition:

• We encourage solar and wind energy, constructing energy-efficient buildings and supporting initiatives for natural gas-free homes.
• We are investing in smart grids and energy storage to maximise the efficiency of renewables.

To make this strategy measurable, Municipality X sets a target: Municipality X aims to be fully carbon neutral by 31 Dec 2030, produce 50% less waste compared to 31 Dec 2025 and get 100% of its energy from renewable sources.

• CO² reduction (indicator)
• Waste production (indicator)
• Energy from renewable sources (indicator)

2. Sustainable mobility:

• Municipality X encourages the use of public transport, bicycles and electric vehicles by building bicycle paths, electric car charging points and an efficient public transport network.
• We organise campaigns to make residents aware of the benefits of sustainable mobility.

With this strategy, the following objective has been established: Municipality X aims to increase the use of bicycles for commuting by 40% compared to January 2025, through the construction of new cycle paths and secure bicycle parking facilities. 75% of public transport by 2030 will be emission-free through the use of electric buses and trams.

• Use bicycle as means of transport (indicator)
• Public transport emissions (indicator) 

3. Cooperation and participation:

• Municipality X works closely with residents, businesses and civil society organisations to promote sustainability. We organise regular meetings and workshops to share ideas and initiatives.
• We offer educational programmes and grants to support sustainable projects and encourage active community involvement.

 This strategy is made measurable by the following objective: Municipality X wants 40% of residents to be actively involved in at least one sustainability project, through education and participation programmes.

• Involving residents (sustainability projects) (indicator)

By following these steps, an organisation ensures that sustainability indicators are not only relevant, but also practically applicable within the organisation. This helps to integrate sustainability into project and portfolio management in a structured and measurable way.