Sustainable dairy systems must strive for practices that reduce the negative impacts and enhance the positive impacts, and find measures to track changes in relation to different goals. The aim of this project is to investigate how indicators and tools for ecosystem services and biodiversity can be applied to dairy production on different levels and be used for steering towards sustainability. The goals are to develop a set of indicators and tools with special emphasis on carbon sequestration, biodiversity related to grazing of semi-natural grasslands and habitats and land use. The project will further evaluate the indicators on different levels (farm/regional/national). In addition, the project will propose criteria, measures and policy instruments for enhancing ecosystem services and biodiversity. By emphasising ecosystem services, important but often forgotten aspects of farming can be highlighted and used for strengthening the communication of added values in the dairy sector.