Businesses have the responsibility of promoting and investing in innovations that meet the requirements of sustainable development. According to the UN Secretary General’s High-Level Panel on Sustainability, the global agenda on sustainability is to reduce inequality, eradicate poverty, and help make production and consumption more sustainable. One way of achieving this noble agenda and make the world a better place is through sustainability reporting.
ESG sustainability reporting allows companies to review their processes and craft strategies to help them impact the planet more positively. If you are new to sustainability reporting or want to make it more effective, here are the four most important things that you should know about.
What is ESG Reporting?
ESG sustainability reporting is the disclosure of information about the significant social, environmental, economic, and governance impacts of a company. It combines profitability with the goal of a company to make a positive impact on the planet. Organizations use a number of ways to communicate sustainability information. Here are some of them:
- The way they use and affect different resources, such as natural, human, social and financial.
- Response to specific stakeholders’ needs for information.
- An organization’s sustainability strategies.
- Positive and negative implications a business has on the society, economy, and society.
Sustainability is All about Creating Value
To get more from ESG sustainability reporting, it is important to consider it as a process targeted at delivering value. This is why organizations that had already adopted corporate social responsibility or conscious capitalism find it pretty easy to shift to ESG sustainability reporting. In line with the UN Secretary General’s High-Level on Sustainability, the goal is to add value to the planet by making it a better place for all. This implies that every business, no matter the size, can participate and help to make the planet better for both the current and future generations. From cutting down on your emissions to adopting green energy, your effort will be greatly appreciated by stakeholders.
There is No Limitation on the Impact You Can Have through ESG Reporting
The question of standards and metrics always come-up when companies are drawing their ESG reporting strategies. Although there are many standards, such as Sustainability Accounting Standards Board (SASB) and Global Reporting Initiatives (GRI), their universal application can be challenging. However, you should not use these standards to limit the impact you can have on the planet. Instead, you should follow the recommended reporting framework and the best practices to make the world a better place. For example, you can target cutting emissions by 30% through the adoption of clean energy, surpassing the set limit.
Success of Sustainability Depends on Strategic Importance
One of the most important principles of sustainability reporting is materiality. This means that your company should target the areas that have an impact on an organization’s ability to create, preserve or harm social, environmental, and economic value. Therefore, you need to carefully select the projects or activities that can help achieve the greatest positive impact on the enterprise. For example, a smart idea might be supporting social projects that make people to become part of the company’s community. Other high-impact projects might be automation, staff training, and supporting vulnerable communities.
For managers and entrepreneurs, the best thing that you can probably do is adopting ESG sustainability reporting. It not only helps to make production more efficient, but you are sure of leaving a positive mark in making the world a better place.
To make reporting more effective and enjoy the benefits associated with the process, you should consider automaton through sustainability software reporting software. Visit Diginex Solutions to learn more about ESG reporting and get the best reporting apps.