Can you imagine a world without global warming, pollution, and human trafficking? This might sound like it is a far-fetched reality, but the path of ESG sustainability reporting is going to make it happen. Sustainability reporting is the process of disclosure of information about a company’s performance in environmental, social, and governance areas. This disclosure is aimed at giving stakeholders information they can rely on to answer key questions such as “should I invest in the company?” and “should I become part of the community of the organization?”
Despite the benefits that come with ESG sustainability reporting, some companies have been getting it wrong. Some investors have indicated that the reports they get are not clear or even doubt the accuracy. Other reports have even been labeled greenwashing, and you do not want that. This post takes a closer look at ESG sustainability reporting to demonstrate how it works and four things that you can focus on for success.
What is the Process of ESG Sustainability Reporting?
Before you can decide the main activities for ESG sustainability reporting in your company, it is important to start by understanding the entire process. Here are the main steps of ESG sustainability reporting:
- A review of the company’s opportunities and risks.
- Stakeholder engagement.
- Materiality assessment.
- Strategy formulation (you develop the targets, both in the short and long term) and determine how they will be achieved. For example, will you cut emissions by changing the production line or shifting to green energy?
- Gather data on sustainability and record it correctly.
- Analyze the gathered data, create ESG report, and publish it for stakeholders.
Involving Your Staff in the ESG Reporting Process
When you adopt a strategy for promoting sustainability in your company, employees are primary to the realization of the targeted objective. For example, if you want to cut down energy costs, your staff will come in handy in supporting the initiatives. For example, your staff will be there to switch off lamps, machines, and computers in their working areas to keep the bill low. To involve your staff, here are some useful tips to consider:
- Train the staff about sustainability.
- Engage the staff in strategy formulation.
- Remunerate staff well.
Reach Out to the Rest of the Supply Chain
Think of it this way. You can achieve so much by adopting ESG sustainability. However, the efforts might not work if the suppliers or other parties in the supply chain are still following unsustainable practices. For example, a fruit processor will still be promoting land degradation by purchasing raw materials produced using harmful practices.
It is prudent to carry due diligence and insist that your company can only work with responsible parties. You should insist on getting assurances that all raw materials, supplies, and other related actions do not in any way cause damage to the environment. This will not just reduce damage to the environment, but the cooperating businesses will also start enjoying the benefits of ESG reporting.
Working with the Best ESG Reporting Software
The main cause of inaccuracies in sustainability reports is poor data gathering and analysis. Remember that this does not have to be intentional. If you opt to follow the entire process manually, the sheer number of parameters, data variation, and the need for regular analysis can result in errors. This is why you should adopt ESG sustainability reporting software.
With an advanced app for sustainability management, you can easily follow the process of ESG reporting from the start to end. You can also automate data collection in some areas, such as performance reports and production metrics. Visit Diginex.com to talk to experts in sustainability and get all the support you need for accurate data gathering and sustainability management.
This is the best time to get involved in the noble course of helping the planet address the challenges facing it. Remember that ESG sustainability reporting requires a change in approach to how we do things with the goal of making the planet a better place. In addition to the actions we have listed above, you might want to reach out to communities involved in conservation and social justice for greater effect,