The Sustainability Balanced Scorecard. Linking Sustainability Management to Business Strategy.

Frank Figge, T. Hahn, S. Schaltegger, M. Wagner

Research output: Contribution to journalArticlepeer-review

760 Citations (Scopus)


The Balanced Scorecard of Kaplan and Norton is a management tool that supports the successful implementation of corporate strategies. It has been discussed and considered widely in both practice and research. By linking operational and non-financial corporate activities with causal chains to the firm's long-term strategy, the Balanced Scorecard supports the alignment and management of all corporate activities according to their strategic relevance. The Balanced Scorecard makes it possible to take into account non-monetary strategic success factors that significantly impact the economic success of a business. The Balanced Scorecard is thus a promising starting-point to also incorporate environmental and social aspects into the main management system of a firm. Sustainability management with the Balanced Scorecard helps to overcome the shortcomings of conventional approaches to environmental and social management systems by integrating the three pillars of sustainability into a single and overarching strategic management tool. After a brief discussion of the different possible forms of a Sustainability Balanced Scorecard the article takes a closer look at the process and steps of formulating a Sustainability Balanced Scorecard for a business unit. Before doing so, the basic conventional approach of the Balanced Scorecard and its suitability for sustainability management will be outlined in brief.
Original languageEnglish
Pages (from-to)269-284
Number of pages16
JournalBusiness Strategy and the Environment
Issue number5
Publication statusPublished - Sept 2002

ASJC Scopus subject areas

  • Geography, Planning and Development
  • Strategy and Management
  • Management, Monitoring, Policy and Law


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