By the close of World War II, it was estimated that about 60 million people were left dead. That is approximately two times the population of Canada. Indeed, using death alone does not provide the entire picture because so many were wounded and others stigmatized because of the atrocities caused by war. It is unacceptable, but even today we continue seeing similar suffering on the planet, from human trafficking to social inequalities. To address these challenges, one of the tested and approved methods is sustainability reporting.
Sustainability reporting ensures that organizations take responsibility to address their social, economic, and environmental impacts. If you are an entrepreneur or manager, you now have the chance to make the world a better place. We can say no to social injustices and environmental degradation by adopting sustainability reporting. In this post, we take a closer look at the main categories of information that you should include in a sustainability report.
What is Sustainability Reporting?
Sustainability reporting is the disclosure of a company’s social, environmental, and economic impacts on its operations. It allows an organization to evaluate itself and target making a positive impact on all spheres of the environment. Therefore, it is a way of helping an organization to focus on and build long-term economic value.
Sustainability reporting is based on crucial principles, including transparency and accountability, which target to ensure that only the correct information is captured. Other principles include materiality, flexibility, completeness, and consistency.
When implemented well, ESG sustainability comes with a host of impressive benefits that your company should not miss. Here are some of them:
- Enhanced awareness of risks and opportunities for a business.
- Better long-term management and business planning.
- Enhancing efficiency of production.
- Stronger brand.
- Better relationship with stakeholders.
Information to Capture in Your Report
Now that you know the main principles and benefits that come with ESG reporting, how do you go about it? First, you need to identify the objectives to focus on and craft strategies for achieving them. To make the process more effective, it will be a great idea to select and use appropriate sustainability management software. Here are the main categories of information to capture in the report:
- Your Company’s Consumption of Non-financial Resources
Whether your company uses water, fossil fuel or water as part of the production system or raw materials, you need to capture the information correctly. This makes it easy to understand the rate of the respective resources extraction and your effort to facilitate restoration. Where possible, try to participate in projects that promote restoration.
- Waste Production
Most businesses, especially those in manufacturing, release a lot of wastes that can have a huge impact on the environment and people’s health. So, does your company release a lot of solid, liquid, or hazardous wastes? Once you identify the wastes, capture the quantities and the method used for their disposal.
- Participation in the Work of Community Groups
For most companies that want to exert a greater impact on the society and environment, one of the best ways is working with local groups. For example, you can support conservation groups, social justice NGOs, and self-help initiatives to uplift the communities. These efforts should be captured well in your report for stakeholders to see.
The three categories of information we have listed in this post highlight only part of what should go into your ESG sustainability report. Other crucial information that you can include is risks and opportunities, due diligence on human rights, and policies on matters of corporate sustainability. Remember to review your sustainability strategies and make changes to help improve the performance of your company and make the world a better place for all.