The world economy is "emerging," rising like a phoenix from the rumbles of the COVID-19 pandemic, and it is time to race ahead as a business. One of the key requirements to grow businesses and make them stand out is sustainability reporting. Unlike in the past, stakeholders are no longer persuaded to invest or associate with a business by just looking at ads in the media. Instead, you have to demonstrate that your business is responsible and committed to making the plant a better place.
This brings us to the big question, “how do you tell your sustainability story?” The answer is sustainability reporting. Keep reading to learn more about sustainability reporting and how to use it to grow your organization. We will also demonstrate why you should use the best ESG software for ESG reporting.
How Does Sustainability Reporting Work?
Sustainability reporting is a method of disclosure of a company’s information in three key areas: environmental, social, and governance. It is a conscious process that requires proper planning so that the achievements of one phase can be used as the baseline for the next reporting period. Therefore, if you have several activities that the company has adopted for corporate social responsibility, they need to be structured well using a reporting framework and ESG software to act as a starting point.
The core objective of ESG sustainability reporting is to make it an important agenda and intensify focus like that of financial reporting. This way, matters on the environment, governance, and social well-being are expected to receive more attention to address the global challenges.
We must also indicate that sustainability reporting is now becoming mandatory. After the Paris Agreement of 2015 that called on the UN member states to cut down emissions and reduce global warming to less than 2 degrees Celsius below the pre-industrial levels, more authorities, regional blocks, states, and countries are crafting laws to make reporting mandatory. So, it is time to start reporting with the use of ESG software and enhancing your sustainability story.
Special Tips to Help Your Sustainability Reporting Shine
Creating an ESG sustainability report can be challenging, especially when doing it for the first time. However, the benefits that come from the process make it a worthy undertaking. So, you cannot give up, and it is important to ensure you get it right using the tips below:
- Stick to Sustainability Reporting Principles
Sustainability reporting principles were designed to ensure that all companies work on the same rules to simplify the process of comparison for stakeholders. The principles also eliminate the risk of preparing poor-quality reports. The most notable principle in ESG reporting is accuracy, which means that every piece of information captured on the report must be correct. Other important principles include materiality, verifiability, and continuity.
- Make Sure to Only Focus on Material Topics
There are so many things that you can tell when it comes to sustainability reporting, but you must sieve them and only report the material ones. These are the sustainability impacts that have the biggest impacts on your organization and planet. For example, most stakeholders will want to see things such as the adoption of new technology, more efficient machinery, a shift to green energy, and a significant reduction of the company's footprint.
- Make Sure to Have the Right ESG Software
Your reporting will not be accurate and verifiable unless you employ the right tools. Particularly, you need to select the best ESG software to make data gathering, analysis, and report creation easy. A good app can simplify the reporting process by allowing you to correctly capture financial, staff, production, environmental, and other crucial data for ESG reporting. You can even automate part of data collection and generate mini reports for progress evaluation.
Sustainability reporting is the new norm in the corporate world, and you need to tell your story creatively. Using the tips we have highlighted in this post, you can create high-quality reports that will make stakeholders want to stick with your company and grow together. To identify the best ESG software and get more technical support, visit Diginex.com. You can never go wrong with experts on your side.