Sustainability reporting is an integral part of any organization's sustainability effort. And because no two operations are the same - with different goals, different impacts, and different people in charge of the sustainability efforts - the final reporting products are all unique. You may decide to go with an "in accordance" GRI report or you could just use brief paragraphs, infographics, and fact sheets on your website to get the point across (which is what I have chosen to do).
So how do you decide? That will have to be something your team struggles with as you learn more about yourselves, your organization and its impacts, and the latest sustainability trends and practices.
But for now, knowing the what and why of sustainability reporting should help get the ball rolling with that struggle.
What is Sustainability Reporting?
Sustainability reporting is the avenue through which organizations publish the social, economic, and/or environmental impacts of their day-to-day activities. It involves making public data on things like energy consumption, waste generation, and employee engagement.
An initial assessment report can be used to set goals and develop a strategy for reaching those goals. As progress is made in correcting those issues which require attention, that information is included in subsequent reports.
Sustainability reporting, therefore, is the process of identifying, managing, and tracking the change required to achieve a sustainably operated organization – one that combines long term success and prosperity with ethical social and environmental behavior.
A sustainability report, in addition to conveying an organization's values, is the perfect platform for organizations to communicate sustainability performance – positive or negative – to both internal and external stakeholders.
Why Sustainability Reporting?
The most important reason for sustainability reporting is so organizations can better understand their social, economic, and/or environmental impacts and learn how to make their operations more sustainable.
The reporting process allows organizations to generate relevant and reliable information on their sustainability impacts and performance. Using that information, they can then identify and focus on their most important issues. At the same time, they can identify new opportunities and unforeseen risks associated with reducing their impacts and improving their performance.
On top of learning about their own impacts and ways of dealing with them, a sustainability report allows for more informed decision-making, transparency, and trust.
By measuring performance, managing change, and communicating this to all involved, organizations can drive innovation, cut costs, improve their competitiveness, and protect people and the environment - all at the same time.
The Global Reporting Initiative (GRI) divides the benefits into internal and external ones:
Internal Benefits Include:
- The development of a vision and strategy for operating in a more sustainable way
- Giving structure to, providing context for, and tracking the progress of sustainability initiatives
- Allowing for the identification of sustainability strengths and weaknesses, prioritizing them, and focusing time, energy, and other resources on those issues requiring the most attention
- Attracting, motivating, and retaining better people, who are at the heart of every organization (they will contribute more and stay longer if they are motivated and empowered)
- Enhancing your public reputation
- Building trust with external stakeholders through transparency
- Achieving respect
- Attracting investment by showing you have more than just a sustainable economic model - you have social and environmental ethics and priorities as well
- Improving your competitiveness. There is worldwide awareness of the need for sustainability, but reporting and taking action are still fairly new. You'll be walking the walk rather than just talking the talk. This will help to set you apart.