The Environmental Performance Index: what it means for business

The Environmental Performance Index (EPI) is one of the most recognised global rankings of environmental performance. It scores and ranks countries on how well they tackle climate change, protect environmental health and safeguard ecosystems. While it rates nations rather than companies, its indicators and methodology are a useful reference for any business benchmarking its own environmental footprint.

This guide explains how the EPI is built, what its latest edition measures, and how companies can adapt its categories to their own sustainability strategy.

What is the Environmental Performance Index?

The EPI is produced by the Yale Center for Environmental Law and Policy and Columbia University's Center for International Earth Science Information Network (CIESIN). The most recent edition, the 2024 EPI, ranks 180 countries using 58 performance indicators, giving each a score from 0 to 100, where higher is better. It draws on satellite data, on-the-ground measurements and official statistics.

The three policy objectives

The 2024 EPI groups its indicators into three broad objectives:

1. Climate change mitigation: greenhouse gas emissions trends, emissions intensity and projected progress towards 2050.
2. Environmental health: air quality, drinking water and sanitation, heavy metals and waste management, which most directly affect human health.
3. Ecosystem vitality: biodiversity and habitat, forests, fisheries, agriculture, water resources and pollution.

The 2024 edition also introduced new indicators on how well countries protect important habitats and how effectively their protected areas are managed.

Why the EPI matters for business

1. Operating environment: a company operating in a country with a high EPI score often benefits from stronger regulatory frameworks and greener infrastructure.
2. Risk assessment: low scores can flag environmental risks, such as water scarcity or weak pollution controls, that affect operational continuity and reputation.
3. Market opportunities: firms offering sustainable technologies or services may find demand in countries seeking to improve their EPI standing.
4. Benchmarking inspiration: companies can adapt EPI themes to measure performance at facility or product level.

Adapting EPI indicators to corporate strategy

1. Air quality and emissions

• Internal monitoring: track particulate matter and volatile organic compounds at company sites.
• Carbon targets: align with science based targets to cut emissions, taking local air-quality rules into account.

2. Water resources

• Water footprint analysis: assess and minimise water use in production, especially in water-stressed regions.
• Wastewater treatment: invest in treatment that meets or exceeds local standards.

3. Biodiversity and habitat

• Land use: preserve or restore habitats around sites through reforestation or wetland conservation.
• Sustainable sourcing: prioritise suppliers that protect biodiversity, especially for materials such as paper, cotton or palm oil.

4. Climate and energy

• Renewable energy: replace fossil fuels with renewable sources to power operations.
• Energy efficiency: deploy efficient HVAC, LED lighting and building automation to cut consumption.

Challenges and criticisms

• Data gaps: some countries lack robust data systems, which can leave indicators incomplete or outdated.
• National vs corporate scope: the EPI measures countries, so applying it to a single company requires more granular, adapted indicators.
• Local nuances: national averages can mask regional differences; a site in a weaker region of a high-ranking country may still face real challenges.

Turning EPI themes into corporate reporting

1. Materiality assessment: identify which EPI themes (air, water, biodiversity, climate) align with your most significant impacts.
2. KPIs and targets: translate them into indicators such as water use per unit of product or the share of renewable energy, drawing on recognised sustainability indicators.
3. Continuous improvement: review performance annually and aim for year-on-year progress.
4. Stakeholder communication: report progress using frameworks such as the GRI or SASB standards.

Frequently asked questions

Who produces the EPI?

The Yale Center for Environmental Law and Policy together with Columbia University's CIESIN. The latest edition is the 2024 EPI.

How many countries does the EPI cover?

The 2024 EPI ranks 180 countries across 58 indicators, grouped into climate change mitigation, environmental health and ecosystem vitality.

Can companies use the EPI directly?

Not directly, since it scores countries. But its themes and indicators offer a credible structure for benchmarking environmental performance at company level.

To turn these themes into measurable company data, Manglai helps you quantify and report your environmental impact, starting with your carbon footprint.