In last 10 years, Sustainability reporting has evolved from just carbon footprint and local social initiatives to much more robust form on non-financial impact reporting.
These are the factors that impact the health of an organization.
No amount of money can save a company with bad values and horrible culture. That’s why there is Sustainability Reporting. How you manage your environment, social and ethical governance. What are your core values and what are you impacting.
The trend is changing every year. There are new inclusions and new parameters being added into the report. Organizations need to adhere to these upgraded guidelines.
This is a global trend and not just limited to any country or city or type of organization.
CSR is one small part, ESG is one part, Governance and compliances are another part.
Although ESG has integrated all areas of sustainability into one umbrella and it looks good now.
One can identify the core values and ethical adherence in the entire eco-system of an organization. So whether organizations like it or not, they will have to report and disclose all ESG factors.
Companies have been avoiding supply chain impact disclosures, although a bit tough, but now it must be reported.
Companies need to stop writing long essays and reduce the number of pages with more precise meaning full data. Everything can be measured and reported.
Voluminous and length does not define or prove that report is transparent.
Companies will be scrutinized more now based on ESG Integrated data and statistics. ‘good enough’ is no longer ‘Good Enough’.
So now a Sustainability Report includes:
- CSR initiatives ( Corporate Social Responsibility)
- UN SDG’s (United Nations – Sustainable Development Goals)
- ESG Factors (Environment, Social, and Governance)
- Ethics and Code of Conduct.
- All Policies and Compliances.
- Data Security and Safety
The report must correlate with the financial report and is no longer a separate report.