Mention ESG sustainability reporting and managers and entrepreneurs will list a raft of requirements they need to comply with. Although voluntary, ESG sustainability reporting is a guided process and some organizations, such as Hong Kong Stock Exchange (HKEX) and New York Stock Exchange (NYSE) have made reporting mandatory for all listed companies. Indeed, many are the governments that are considering making ESG sustainability reporting mandatory.
To get it right on ESG sustainability reporting, you need to start by creating a clear sustainability strategy. So, how exactly do you deliver on this strategy? This post is a comprehensive guide detailing all that you need to make ESG sustainability reporting work and take the company to the next level.
Understand that ESG Reporting is a Conscious Process
Many are the times that some investors think that ESG reporting is all about generating some numbers and creating attractive reports for readers to see. This will not work. Instead, you need to understand the concept of sustainability and ingrain it in the company’s operations to win the affection of stakeholders.
ESG is a conscious process that targets three key areas: environment, society, and governance. To demonstrate the company’s commitment to ESG sustainability, you have to start with a comprehensive analysis that identifies areas that require focus. Then, develop specific targets and craft a plan to achieve them. For example, you might want to cut down emissions, and then adopt a strategy such as regular equipment maintenance and shift to green energy.
Remember that the goals do not necessarily have to be directed at the company. For example, a company that deals with insurance might want to work with communities to promote social justice or promote conservation.
Make Sure to Involve the Right People
When getting started, it can feel like the strategy on sustainability is not achieving much, but the results will be rewarding. To ensure that the organization stays motivated and activated to achieve the ESG reporting mandate, it is important to have the right people to drive the process. If your organization is still small, the task can be delegated to one of the departmental heads. However, a busy company might need to bring onboard a consultant.
The good thing with experts is that they are likely to have handled the process elsewhere and have all the experience required for the correct ESG sustainability reporting process. Experts can also come in handy to help train your staff on sustainability so that the organization can be self-propelling in the next reporting phase.
Utilize the Right ESG Sustainability Reporting Software
It is not uncommon to hear investors indicating the reports they got are poorly done or sound suspicious such that they cannot act on them. Factoring the effort that goes into promoting sustainability, no effort should be spared to ensure that only the best report is released, capturing the right status of the company’s effort on sustainability.
The best method to create the best ESG reports is using the right software. ESG sustainability reporting software designed to help automate data gathering and analysis does not just cut down the associated costs, but also allows you to follow different key performance indicators (KPIs). Therefore, if your strategy was to cut down emissions but the rates have started rising beyond the set limits, the app can notify you so that action is taken immediately. In the end, you are sure of achieving the goals outlined in the ESG sustainability reporting strategy. Visit Diginex.com to see their world-class ESG sustainability reporting app and use it for success.
As you can see, creating an ESG sustainability reporting strategy is one thing, but achieving the goals requires a lot of commitment. The lovely thing is that your company will enjoy so many benefits of adopting sustainability. All that you need is make sustainability an important agenda for the organization, use the right team, and acquire the best software.