Is your company trying to be more sustainable? Start by reporting on your sustainability efforts! Sustainability Reporting is the way for companies to disclose how they are affecting the world around them. Reporting shows stakeholders what you care about by explaining the positive impacts your company is amplifying, and the negative impacts you are working to reduce.
In addition to providing the content for your sustainability report, the processes of gathering information, analyzing it, and brainstorming future changes can all be very beneficial to your company. Here are 4 big ways your company can benefit:
Make Better Sustainability Decisions
Reporting requires a thoughtful analysis of your company’s current state. This analysis provides you with the information needed to make the best and most sustainable decisions for your company. Instead of picking initiatives in hopes of being more sustainable, you will be able to choose initiatives that have the greatest impact. Doing research and analysis is key to forming a good strategy, and you also get the benefit of having a tangible report in the end.
Whether you’re a small business or growing startup, you can leverage reporting to help you improve internal operations. Sustainability is about more than just the environment. The way your company impacts society, including your employees, is also considered sustainability. Does your business have a code of conduct? What about a communication plan with your supply chain partners and customers? Do you survey your stakeholders to find out what sustainability issues they care about? I hope you see my point. By going through the reporting process you may find gaps in your company’s operations. But that’s not a bad thing! Finding out enables you to improve and fill in those gaps with policies and processes.
Hold Your Company Accountable
Reporting on your company’s sustainability goals, and the progress on those goals, is an incredible way to make sure sustainability does not get forgotten. Having goals with a deadline in place will require people/teams within your company to be responsible for specific action. That responsibility creates a culture where sustainability is constantly being thought of or worked on. Publishing a yearly report will show your team and your customers that you are serious about making positive impacts.
Become More Investable
It is becoming increasingly more commonplace for investors and financial institutions to require knowledge on ESG related impacts before investing in a company. In fact, the SEC will review a proposal by the end of the year about making climate related disclosures mandatory for public companies. As more companies are required to report not their impacts toward climate change, they will likely proliferate that requirement throughout their supply chain in order have transparency. As you compete against other businesses in your industry, adding a sustainability report to your portfolio can help set you apart.
If you sign up for my Sustainability Reporting Accelerator Kit, you’ll get presentations to walk you through the reporting process. In addition, I also will provide a workbook for you to fill out as you follow along in the course. I’ll also show you an example sustainability report that you can use as a template for your company.