Sustainability as a performance target

The seventh edition of PRINCE2 added sustainability as a performance target alongside benefits, cost, time, quality, scope and risk. That means sustainability is no longer something a project considers if it has time; it is something the project plans for, measures, reports and manages within tolerances like any other target. This lesson explains what sustainability means in a PRINCE2 project, how sustainability targets and tolerances are set, how they are measured, how they interact with other targets and how the wider policy context differs between organizations and countries. It also explains why sustainability is fundamentally a people topic: it concerns the effects of the project on communities, workers and future generations, and it depends on the choices people make throughout the project.

What sustainability means in a project

Sustainability is usually described in three dimensions. Environmental sustainability covers effects on climate, resources, ecosystems and pollution. Social sustainability covers effects on people: workers, communities, accessibility, equity, health and safety. Economic sustainability covers long-term financial viability, including whole-life costs rather than only the project budget. A project can affect all three in two ways: through how it is run, such as travel, materials, waste and working conditions, and through what it delivers, such as the energy use of a new building over 40 years or the accessibility of a new public service.

Distinguishing the two is important when setting targets. A project manager can directly control how the project runs, but the long-term effects of products are shaped mainly by design decisions and by the people who will operate them. Product-related sustainability often appears in quality criteria and acceptance criteria, while project-related sustainability appears in plans, budgets and tolerances.

Setting sustainability targets and tolerances

Sustainability targets should come from the organization's own commitments, the project's business case and relevant legal requirements. The business layer may set a project-level sustainability tolerance, for example a maximum carbon budget or a minimum share of spending with local or social enterprises. The board then sets stage tolerances, and product descriptions carry product-level criteria such as an energy performance rating. As with other targets, sustainability tolerances should be measurable, agreed and monitored.

Measuring carbon

Carbon is the most commonly quantified sustainability target. Greenhouse gas emissions are usually expressed in metric tons of carbon dioxide equivalent, written tCO2e, which converts other gases into the amount of carbon dioxide with the same warming effect. A simple estimate multiplies activity data, such as liters of diesel or kilowatt-hours of electricity, by an emission factor for that activity. Organizations publish their own factors or use national inventories; the numbers in this lesson are illustrative.

The example shows why measurement matters before action. Without the breakdown, a project might focus on visible measures such as reducing flights, which contribute only 8 % of the footprint here, and miss the material choice that dominates.

Scopes and boundaries

Organizations commonly report emissions in three scopes. Scope 1 covers direct emissions from sources the organization owns or controls, such as its own vehicles and equipment. Scope 2 covers emissions from purchased electricity and heat. Scope 3 covers all other indirect emissions in the value chain, such as purchased materials, supplier activities, business travel and the use of sold products. For a project, many significant emissions fall in scope 3 because they arise in suppliers' operations. Agreeing the boundary of what the project will measure, and how suppliers will report, is part of setting a sustainability target.

Boundaries are a people issue as much as a technical one. Suppliers may need to collect data they have never collected before, and they will be more willing if the customer explains why it matters, keeps requests proportionate and recognizes the effort involved. Building sustainability reporting into contracts and work packages from the start is far easier than adding it later.

Trade-offs with other targets

Sustainability interacts with every other target. A lower-carbon concrete may cost more or cure more slowly, affecting cost and time. A more accessible design may increase scope. Buying from local social enterprises may raise prices but deliver community benefits. PRINCE2's approach is to make these trade-offs visible and decide them consciously, using the business case and agreed tolerances. A useful technique is to put a value on sustainability effects, such as an internal carbon price, so that options can be compared on a common basis while recognizing that not everything reduces neatly to money.

Social sustainability and people

Social sustainability covers the project's effects on people inside and outside it. Inside the project, it includes fair working conditions, reasonable workloads, health and safety, and respect for workers in the supply chain. Outside, it includes disruption to neighbors, accessibility of products, effects on vulnerable groups and opportunities such as local jobs and training. Many public bodies now evaluate social value in procurement and expect projects to report on it.

Supply chain labor practices deserve particular attention. Projects that buy materials or services internationally may be exposed to forced labor or unsafe working conditions in their supply chains. Organizations in several jurisdictions now have reporting duties on these risks, and boards increasingly expect assurance that suppliers have been checked. In PRINCE2 terms, this belongs in the risk register, the quality criteria for procurement and the senior supplier's assurance responsibilities.

The policy context

In the United States, federal sustainability policy changed significantly in 2025: executive orders issued in January 2025 revoked the previous federal sustainability order, Executive Order 14057, and agencies withdrew related guidance. The SEC stopped defending its climate disclosure rule in 2025. At state level, California's climate disclosure laws continue to develop: the emissions reporting law, SB 253, has proceeded, while a federal appeals court paused enforcement of the climate-risk reporting law, SB 261, in late 2025 pending litigation. Many companies and cities keep their own sustainability commitments regardless of federal policy, and the Uyghur Forced Labor Prevention Act affects imports linked to forced labor. A project manager should check which commitments apply to the commissioning organization. All of this is current as of October 2026 and changes frequently.

For PRINCE2 purposes the key point is that sustainability targets come from the commissioning organization's commitments and obligations, which sit in the business layer. The method does not tell an organization what its sustainability ambitions should be; it makes sure that whatever ambitions exist are translated into measurable targets and managed with the same discipline as cost and time.

Reporting sustainability

Sustainability performance should appear in the same reports as other targets: checkpoint reports, highlight reports, end stage reports and exception reports. Showing it alongside cost and time reinforces that it is a genuine target. At closure, the end project report should record performance against sustainability tolerances, and the lessons report should capture what worked, such as materials, supplier practices or design choices, so that future projects can learn.

Engaging people in sustainability

Sustainability targets are met or missed through the daily choices of many people: designers choosing materials, buyers choosing suppliers, site managers deciding on generator use, team members deciding whether to travel or meet online. Targets imposed without explanation tend to be treated as compliance exercises. Targets that people understand, can influence and see progress against tend to be met. Project managers can help by explaining the reasons for each target, showing the breakdown of the footprint so people see where their choices matter, recognizing teams that find reductions and including sustainability in checkpoint discussions rather than only in formal reports.

Suppliers are a key audience. Many have their own sustainability commitments and expertise, and may propose better solutions if asked. Inviting suppliers to suggest lower-impact alternatives during planning, and sharing any savings or recognition fairly, turns sustainability from a contract requirement into a joint objective. Where suppliers lack the capacity to measure emissions, the customer may need to provide simple tools or accept estimates for a first project, improving data quality over time.