Sustainability is becoming a lot more important in corporate settings. Around 40% of corporations had developed a sustainability program by 2015. That number has increased even more in recent years as more consumers express concerns about sustainability.
This highlights the importance of social responsible reporting. As a manager, you need to make sure that you understand the process properly.
Sustainability Reporting is Becoming More Important These Days
For more than 100 years, the globe has been experiencing severe challenges approaching its climax. The most notable is global warming that is associated with dangers such as the fast thawing of polar ice and loss of biodiversity. Far from these, reports of unending wars, hunger, draughts and human trafficking regularly hit the headlines.
The globe is racing fast towards self-destruction, and businesses have a more prominent role to play to halt this. We are even seeing changes to the seasons.
With other initiatives, such as the Kyoto Protocol and corporate social responsibility not yielding much, a new initiative had to be sought, and now we have the answer: sustainability reporting. At first, it was implemented voluntarily, but it has become the go-to tool we have been waiting for. In this post, we take a closer look at ESG sustainability reporting to demonstrate what it is and highlight its merits.
What is Sustainability Reporting?
Sustainability reporting is the disclosure process of a company’s environmental, social, and governance (ESG) impacts from its functions. While the ultimate product of the process is the report generated for stakeholders, the focus is the adoption of sustainability into the businesses’ processes. According to Global Reporting Initiative(GRI), of the pioneers of sustainability reporting, the sustainability report only reflects what is happening in a company.
Sustainability reporting is an opportunity for companies to showcase their responsibilities and affirm that development cannot be isolated from the environment. Moreover, as the concept of sustainability evolves, governments and regulatory authorities are now using it to emphasize its benefits. Particularly, the reporting process comes in handy in helping companies identify opportunities they can exploit for faster growth and success. So, you better take a closer look at the benefits of ESG sustainability reporting and position your farm to reap them.
Merits of Sustainability Reporting
When you adopt ESG sustainability reporting, it is an excellent opportunity to highlight its strategies, values, and acumen. You can use the report to demonstrate your brand’s strategic approach, both internally and externally. This means that everything you do, whether it is a support program for the staff or the focus on cutting down emissions, will help build a positive brand. Other merits of ESG sustainability reporting include:
● Offers the Perfect Opportunity to Link with Company’s Stakeholders
The entire process of ESG sustainability reporting is geared towards telling stakeholders, “Look, these are the efforts we have put in place for sustainability.” By involving them at the start of the process and updating them along the way, you build better engagement. This might be all you require to get them to inject more capital, join your community on social media, and buy your products.
● Your Opportunity to Rethink Your Company’s Operations
If your company has not been performing as you want, it might be time to rethink your strategy. When starting the process of sustainability reporting, you have the opportunity to understand where your enterprise is doing well and areas that are lagging. This is your opportunity to review and upgrade your company’s strategy. You might want to work with an expert to help with redefining the strategy to become more competitive.
● The Perfect Chance to Join the Rest of the Globe in Addressing the Globe’s Challenges
As we highlighted at the start of this post, the challenges facing the planet are disturbing. Whether you are an investor or manager, you do not want to imagine your children or the next generation getting engulfed by the unfolding disasters. This is why you should be proud of adopting sustainability reporting to halt these problems on their tracks. When you adopt sustainability, you can rest assured that the story of success will no doubt follow.
These are some of the merits that come with sustainability reporting. However, you should expect a lot more for your company, staff, society, and environment. To get it right on sustainability reporting, you need to ensure that the data and information captured therein are correct. The best way to do this is by working with experts and using the right software for sustainability reporting. Visit Diginex.com now for all the support you need about sustainability and sustainability reporting in your firm.