What Information Should You Include in Sustainability Reports?
Although the concept of sustainability reporting appears new, it has been around for some time, all the way back from 1992 during the UN Conference on Environment and Development. So, if you are only hearing of it now or want to start reporting more effectively, the most important thing is doing it correctly. In this post, we are going to answer the big question that you might be having, “What information should you include in a sustainability report?”
What is ESG Reporting?
To have a clear picture of what you should include in corporate sustainability reports, the first step should be to understand what it is. ESG reporting is the process of disclosing information about the significant social, economic, governance, and environmental impacts of a company. As a reporting process, it means that your business will be required to measure and correctly show the impacts it has on different areas.
Notably, the process surpasses the simple generation of a report and extends into the internalization of efforts for progressive improvement in different sectors. So, even as you focus on, say, cutting down emissions from your facility and minimizing waste at source, the ultimate target should be seeing the planet become a better place for both the present and future generations. Therefore, you might also consider additional corporate social responsibility activities, such as support for groups dealing with conservation.
When generating reports, it is crucial to follow the guiding principles, which require transparency and accuracy. So, here is the information that you need to include in the reports;
Production of Wastes and Pollutants
In order to demonstrate how you are impacting the environment, you have to capture the type and amounts of wastes coming from your facility. This information needs to be complete, meaning that a reader should be able to tell the nature of wastes, how they are generated, and disposal methods. If you have any initiative to cut wastes or recycle it, make sure to also capture it correctly in the sustainability report.
Consumption of Non-Financial Resources
If your organization is involved in direct exploitation or use of non-financial resources, it is important to ensure the details are captured correctly on the report. The overall goal is to demonstrate the rate of resource exploitation and possible efforts for enhancing the process of regeneration. Here are some of the main non-financial resources used by different companies:
• Forestry products.
Participation in the Works of Local Communities
One of the principles of ESG management software is the need to link reporting and action. The goal is to ensure that companies focus on areas of priority. So, if your organization deals with forest resources, the area of priority might be helping to regenerate the natural habitats or promoting species diversity. If you work with communities to promote conservation, enhance social justice and eradicate poverty, the efforts should be captured in the report.
Innovation to Produce Products for Sustainability Agenda
The agenda for sustainability cannot be achieved without getting as many parties as possible involved. This is why companies are encouraged to be innovative in designing products that support sustainability. Whether this is part of your core product or a separate initiative, you need to report it correctly.
These are only a few of the items that you should include in the report. Others that you might consider depending on your industry include human rights due diligence, the position taken on sustainability matters, and costs associated with the adoption of sustainability reporting. Remember that you can also make the process of reporting easy, fast, and reliable by using automation software.