A Design-Oriented Sustainable Balanced Scorecard Framework for the Energy Sector

Abstract

Large multinational energy companies face a strategic trilemma in balancing growth, strategy, and sustainability, which are often difficult to integrate and insufficiently supported by measurable performance indicators. Despite the extensive literature on Sustainability Balanced Scorecard (SBSC) models, prior frameworks remain limited in their ability to differentiate human-related performance drivers, to embed risk management logic structurally, and to reflect sector-specific characteristics of the energy industry. This study aims to develop a structured, metrics-based framework that strengthens sustainability-oriented strategic planning and decision-making. Adopting a design science research perspective, the study proposes an enhanced Balanced Scorecard model, the Sustainable Six-Perspective Balanced Scorecard (HEX-BSC). Building on the Sustainability Balanced Scorecard, the framework expands the traditional four perspectives to six: financial, external customer, internal customer (employee), corporate culture, internal processes, and sustainability. A human-centred structure separates employee satisfaction from organizational culture to improve diagnostic precision. A 4T risk-management module—Transfer, Terminate, Tolerate, Treat—is embedded within each perspective to support dynamic and responsive performance management. Qualitative feedback from senior leaders in the Hungarian energy sector indicates that the HEX-BSC is both conceptually robust and practically interpretable. By explicitly linking outcomes across perspectives–such as assessing how product launches affect sales, customer experience, employee workload, processes, and sustainability—the model enhances strategic alignment, transparency, and organizational learning. The novelty of the HEX-BSC lies in its explicit separation of employee and corporate culture perspectives, the integration of a 4T risk-management logic across all dimensions, and its energy-sector-specific design.