If you had one wish that would help your company to grow faster and become more successful, what would it be? Many are those who would pick winning a bigger market share, but one excellent choice would be to implement ESG sustainability reporting correctly.
This is because ESG reporting is at the heart of any organization’s explosive potential. See – investors, customers, employees, and regulatory authorities are all looking for sustainability reports to help the company move ahead.
Environmental, social, and governance (ESG) reporting is the process used by companies to demonstrate their efforts towards promoting a better planet. Since 1992, focus on sustainability has created a new way for addressing the root causes of the ills facing the planet. So, are you ready for ESG sustainability reporting? Here is a demonstration of how to navigate through.
Understand What ESG Sustainability Reporting Is
The first step to correctly navigate through sustainability reporting is to understand what the process is all about. Here, it is important to appreciate that although you will finally have to create a report, the bulk of your company’s effort should be directed at the process of ESG reporting. So, here are the main components of the reporting process:
- Start by reviewing the company’s processes to identify key risks and opportunities.
- Identify and work with key stakeholders. This will help you to identify the most important areas to focus on.
- Create a strategy and plan that highlights what the company will do to remedy negative impacts identified during the review and suggestions from stakeholders. Make sure to put focus on areas that have greater impacts for your company depending on the stakeholders’ preference.
- Gather data as you start working on the action plan. Particularly, you need to follow pre-identified key performance indicators (KPIs) for sustainability to know if the strategy is working. If you find that the targeted levers are not being met, do not hesitate to initiate changes.
- Finally, generate your report and study it well to ensure that all the information presented therein is correct, easy to read, and verifiable. For example, when you say that the company has cut emissions by 50%, demonstrate that with verifiable details. For example, you might want to provide data on emissions before and after installing new machinery.
Have the Right Reporting Framework
Another important component that you must have for correct reporting is an appropriate framework. The most common and the oldest is the Global Reporting Initiative (GRI), which is preferred for its flexibility. It lists standards that firms need to follow to report their sustainability efforts correctly. It works well for both small and large organizations: Other reporting frameworks that you might want to consider include:
- The Sustainability Accounting Standards Board (SASB).
- Carbon Disclosure Project (CDP).
- The Task Force on Climate-Related Financial Disclosures (TCFD).
Make Sure to Have an Appropriate Sustainability Management Software
Even with the right framework and correct understanding of the sustainability reporting process, we must say that the process can still be pretty complex. Imagine picking data from the management system about staff, checking reports on the production line, and following with staff to see their sentiments after adopting new initiatives.
If you have multiple teams, the process can be overwhelming. To overcome these challenges, you need to use appropriate sustainability management software.
With a good program, you can directly integrate it with the company’s management system, automate the data collection process, and even run analytics. When it comes to shifting to the next reporting session, demonstrating continuity will be pretty easy. Other benefits of using sustainability reporting software include:
- Helps to cut down cost of operations.
- Makes engagement with stakeholders easy and enjoyable.
- Increases the accuracy of the sustainability report you generate.
- It makes the otherwise complex process of ESG reporting seamless.
ESG sustainability is the new dawn defining the company management trends, and you have to take note. Whether your company is in the US, Europe, or Asia, among other places, adopting ESG sustainability reporting can help you race ahead of competitors, a stronger brand, larger market share, and success. Reach Diginex to get the best sustainability reporting app for your company.