For years, the question of how to achieve sustainability has been a hot-button issue. However, World Summit on Sustainable Development (WSSD) held in 1992 has a tested and proven solution – ESG sustainability reporting.
Businesses look at how the social, economic, and environmental impacts of their operations with the aim of making the globe a better place for all.
While the benefits of sustainability reporting are indeed many, including higher efficiency and reduced pollution levels, concerns about whether all businesses should indeed adopt it still linger. In this post, we will look at the trends in sustainability reporting. We will also identify the major benefits of using ESG sustainability reporting for your company.
What is Sustainability Reporting?
Before looking at the trends, the first question to ask is, “What is ESG reporting?” This is a process used by companies to help organizations define goals, measure performance, and manage change geared towards enhancing the global economy. The reporting process combines long-term profitability with both social responsibility and care for the environment.
It is crucial to indicate that sustainability reporting is not limited to the report alone. It is used as the primary platform for communicating an enterprise’s social, environmental, and economic performance, capturing both negative and positive impacts. Some of the information captured in the report includes how companies use different resources, from financial to natural resources. These might also be referred to a capital.
Trends in Sustainability Reporting
Today, thousands of companies produce sustainability reports, but we have to highlight this is only a small percentage of the global enterprises. According to KPMG, it is estimated that ore 95% of the 250 biggest firms on the globe report their sustainability. Particularly, small and medium enterprises have been slow in adopting sustainability reporting mainly because of the required resources and capacity.
If your enterprise is new, it is good to closely look at the main benefits of sustainability reporting. Although the cost, especially acquiring new equipment, might be high, that should not blur your resolve for sustainability. Therefore, think of innovative ways that you can implement sustainability reporting, including being part of a supply chain that focuses on sustainability. Here are other two things that you can do:
- Acquire corporate sustainability reporting software: This can help you understand how the entire reporting process should happen. Make sure to select the reporting software that is easy to use in your organization.
- Use the International Network for Environmental Management (INEM) Tool Kit: This kit is designed for small businesses and comes with a training program to help you as a beginner reporter.
The benefits of sustainability reporting set the globe on a path to prosperity for both the current and future generations. Therefore, it is an obligation for all small and big companies to adopt and make it work. This is why all should be involved. So, if you are not yet started, it is time to start thinking about the impacts of your operations and craft strategies for making the globe a better place.