Every time we look around, reports of devastation on one part of the planet or the other capture our attention. From the rapid loss of biodiversity in our forests to the rapid pace of global warming, one thing remains clear; the world is headed in the wrong direction. Now, thoughts of how we got to this perilous point are even more stressful. The good thing is that we can address the challenges facing the planet by committing to ESG sustainability reporting. Keep reading to learn more about ESG sustainability reporting and what you can do to help.
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What is ESG Sustainability Reporting?
ESG sustainability reporting is the disclosure of environmental, social, and governance impacts of a company. Although the process culminates with the report which is presented to stakeholders, it is way more than that. It entails the adoption of sustainable practices into every arm of an organization to help change the planet into a better place for all.
The process of sustainability reporting starts with an assessment of the current status of a company’s operations to identify the main challenges and opportunities. Then, a plan that includes the main goals and roadmap to achieve them is developed. This includes both the short and long-term targets. For example, your company’s ESG reporting goals might be cutting emissions by 50%. Then, efforts towards that goal might be proper equipment maintenance in the first two years and changing the machinery in the third and fourth years.
To realize the benefits of ESG sustainability reporting, you should bring on board different stakeholders during planning. By asking investors, customers, and employees about their preferred activities for sustainability, the attachment with them can only grow stronger. For example, you might have wanted to start by supporting social justice in a different country, but your stakeholders prefer species conservation. Always go with what your stakeholders want.
The Cost of ESG Reporting Does Not Have to Be So High?
Many are times when managers and entrepreneurs have highlighted the high cost of implementing ESG reporting. It is true that some costs will have to go into it, but that is only one side of the story. Indeed, you should ensure to capture the effects of implementing ESG reporting in its totality. Consider looking at it by thinking of the benefits that your enterprise will get. For example, more stakeholders will be willing to jump in, pump more funds into your organization, and support its growth because of commitment to sustainability.
Now, we will also tell you for sure that ESG sustainability reporting does not have to be that expensive. Let’s put it differently; the process does not have to choke your enterprise. There are two ways you can approach this to make ESG reporting more affordable.
- Identify activities with huge impacts but that do not require a lot of costs. Good examples, in this case, might include better maintenance and change of behavior for your staff.
- Starting gradually by changing only one section at a time. For example, you might want to reduce emissions gradually by changing only a section of the machines this year and others in the subsequent years.
The World is Looking to You for Higher Sustainability
At times, that small action, be it promoting the change of behavior for your staff or supporting a small group out there for social justice, might feel as if it is insignificant. However, it is not. In fact, that might be the link that is needed to heal the globe. Think of it this way. If you can manage to cut emissions by just 20% and one million other enterprises do so, what level of emissions can the globe remove from the air? So, do not give up. You need to soldier on because the globe is looking to you.
These are only a few of the facts about sustainability reporting. To get more benefits to your organization, it will be good to get appropriate sustainability management software. Particularly, you should target the programs that support automation to make reporting easy and fun.