Finance

Measuring Sustainability KPIs with Dynamics 365: A Roadmap for ESG Compliance

Finance
October 23, 2025
15 min to read
Dharmendra Panwar

Sustainability and ESG compliance have become critical priorities for modern businesses.

Microsoft Dynamics 365 provides organizations with the tools to track sustainability KPIs, streamline reporting, and align operations with ESG standards. By leveraging Dynamics 365, businesses can make data-driven decisions that promote environmental stewardship, social responsibility, and governance excellence.

Why Measuring Sustainability KPIs Matters

Tracking sustainability KPIs helps organizations:

a. Monitor carbon footprint and energy consumption

b. Optimize resource utilization and reduce waste

c. Ensure regulatory and ESG compliance

d. Align operational strategy with sustainability goals

Using Dynamics 365, businesses can centralize sustainability data, visualize trends, and generate actionable insights.

Key Sustainability KPIs to Track in Dynamics 365

1. Carbon Emissions

Measure emissions across operations, logistics, and supply chains to identify reduction opportunities.

2. Energy Consumption

Track energy usage across facilities and processes, enabling cost savings and improved efficiency.

3. Waste and Recycling Metrics

Monitor waste generation, recycling rates, and material reuse to enhance circular economy practices.

4. Water Usage

Measure water consumption to ensure responsible usage and regulatory compliance.

5. Supplier ESG Compliance

Assess suppliers’ sustainability performance to mitigate risks and maintain ethical sourcing.

How Dynamics 365 Enables ESG Compliance

Centralized Sustainability Dashboard –

Visualize key metrics in real-time for faster decision-making.

Automated Reporting –

Generate ESG-compliant reports for stakeholders, auditors, and regulators.

Predictive Insights –

Leverage AI to forecast environmental impacts and optimize resource allocation.

Integration with Microsoft Sustainability Manager

Connect operational data with ESG frameworks for comprehensive compliance tracking.

Steps to Implement ESG KPI Tracking with Terracez

At Terracez, we guide organizations in effectively measuring and managing sustainability KPIs:

Identify key sustainability metrics aligned with industry standards

Integrate Dynamics 365 with existing operational systems

Set up automated dashboards, alerts, and reporting for ESG compliance

Provide training and ongoing support to maximize adoption

Measuring sustainability KPIs with Dynamics 365 enables businesses to achieve ESG compliance, improve operational efficiency, and drive long-term sustainable growth. Organizations that leverage real-time insights and automation can make smarter decisions while demonstrating accountability to stakeholders.


Ready to transform your ESG strategy with Dynamics 365? Contact Terracez today to implement a comprehensive sustainability KPI tracking roadmap.

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