For about 30 years, it has been all introductory works and now, the path to success, not just for individual enterprises, but the global economy has been revealed – ESG sustainability reporting. This is the process of disclosure of environmental, social, and governance impacts of a company or organization.
By adopting sustainability reporting, your business becomes an important part of the bigger force working hard to restore the planet’s sanctity. If you have seen the impacts of global warming, massive pollution, unending wars, and social injustices in the media, the focus on sustainability can help to address them.
ESG sustainability reporting is the mirror of a company, helping stakeholders to understand all its internal processes. Customers want to know whether the products they are about to buy were produced in a sustainable way while investors are anxious about the long-term profitability of the enterprise. This is why you need to make ESG reporting an inherent part of your organization.
As we have mentioned, ESG sustainability reporting is a process, but you must have a clear understanding of the type of report to expect. This post will demonstrate how to create top-notch reports that stakeholders can rely on to make the right decisions about your enterprise.
Prepare the Report for Specific Stakeholders
Although you are involved with the company’s daily operations, it will be a mistake to ignore the stakeholders in ESG reporting. The best practice is running a materiality assessment and direct engagement with stakeholders. For example, if you target investors, it will be a good idea to establish what they want to see the company do.
For example, suppose you run a company dealing with fish or food processing. In that case, stakeholders might want to see your ESG reporting process focus on activities that promote the conservation of spawning grounds. Some of the stakeholders you might want to think about include:
● Investors.
● Customers.
● Employees.
● Shareholders.
● Regulatory authorities.
● Business partners.
Target ESG Disclosures Focusing on What Has the Highest-Impact
When looking at the company’s effort on sustainability, stakeholders are no doubt also checking what alternative companies are doing. Therefore, you need to check for the areas where the company will have the largest impact. For example, if your company releases a lot of emissions, it might be a better idea to put more effort into reducing them. Then, link that effort to the problem of global warming.
Other considerations that will have a huge impact are cutting down on wastes at the source, reducing water use, and adopting green energy. Remember to interweave these efforts to the long-term success of the enterprise.
Think about Clarity and Reliability
To make the process of ESG sustainability reporting effective, you have to factor in all the principles. The two most important of them are clarity and reliability. With a clear report, your stakeholders will understand all the activities you are involved in and appreciate the effort. They will also see your non-financial efforts towards sustainability. Other principles of sustainability that you need to factor include:
● Accuracy and completeness of the data you present.
● Flexibility.
● Materiality.
● Verifiability.
● Building on the current reporting efforts.
When targeting to create top-notch ESG sustainability reports, it is crucial to think of the whole process, starting from materiality assessment to data analysis. Particularly, you need to focus on gathering the right data on the company’s sustainability efforts to win the trust of the targeted stakeholders.
To simplify the process further, consider identifying the right sustainability reporting software and framework for ESG reporting. A good sustainability program can help you automate the process and connect with different stakeholders more easily. Well, it is a complex process, but you can simplify it with the right program. Visit Diginex to see their high-rated programs for sustainability.
