It is more important than ever for a company to know and analyse the performance and results of its management system. This is why one of the focuses of recent environmental management research has been on the identification and analysis of the actual results of environmental management. There is a need to determine consistent criteria for recording, measuring and assessing the environmental performance (as demanded by the international standard ISO 14031). Therefore the concept of environmental performance measurement (EPM) includes not only the record of the environmental results of a company, but also their assessment. In this paper an eight-step circle for environmental performance measurement called EPM-KOMPAS is presented, which follows the typical characteristics of an (economic) performance measurement system. An empirical study of the mechanical engineering industry in Germany has already shown that the data required by the EPM-KOMPAS instrument are available (Günther and Sturm, 2002). Copyright © 2005 John Wiley & Sons, Ltd and ERP Environment.