Over the past few years, there have been several attempts made to convert the corporate sector into a more sustainable place. This has been done through the collective work of raising awareness, especially on micro and macro levels, incentivizing sustainable solutions, and encouraging the formulation of sustainable initiatives through reflection of sustainability reporting.
The practice of sustainability reporting is also one such method that is being adopted by many eco-friendly business owners and company managers which has the potential to revolutionize how sustainability is practiced both today and in the future.
In this article, we will be talking in detail about sustainability reporting, covering what it is as well as some of the major benefits accompanied by incorporating sustainability reporting in your business.
Let’s get started!
What is sustainability reporting?
Sustainability reporting which is also referred to as “non-financial reporting” is when a company decides to create a report usually annual that shows information regarding its environmental, social, governance, and economic goals. This report also shows the actions or initiatives that the company is taking to achieve them and contains its strategic goals, an account of all its sustainable activities, and the costs and benefits that come along with it.
Now that we have the basics sorted, let’s move on to the next section of the article.
The benefits of sustainability reporting
Here are some of the benefits of sustainability reporting:
1. It helps you keep an overview of all important data and information so that you know exactly what to focus on. This also means that you can recognize exactly which areas you are lacking in and which areas you are excelling in so that you can develop strategies that suit you best. This saves you a lot of resources both time and money, as the correct areas are targeted and therefore there is very less wastage caused.
2. Helps your business ensure compliance with all regulations which is integral when it comes to maintaining a positive image of your business both in terms of consumers as well as on governmental levels. This is because governments too have started imposing fines and harsh penalties on violations of sustainability-based laws and these must be avoided by all businesses at all costs.
3. It helps you become more attractive to customers. Today consumers have become quite eco-conscious and are demanding businesses to participate in sustainable activities. Therefore, having sustainability reporting in your business will make you look more appealing to customers. However this in no way implies that you are to look at sustainability reporting as a fancy marketing tool that can be exploited to generate extra profits. Consumers today too are also becoming more conscious when it comes to greenwashing so even if your business sugarcoats its sustainability practices, chances are consumers will know and this would harm both the business reputation as well as sales in the long term as people will end up losing trust.
4. Helps you recruit better talent and more morally conscious individuals
Companies that have strong morals usually end up attracting employees of the same type. Therefore, this is a major benefit as well since having good employees can help your business thrive and get through the most economically testing times as well. In this way employees also build a sense of pride and are more likely to stay loyal to your business, guarding its secrets and giving genuine input for its betterment
5. Assists you in developing a corporate community based on transparency, accountability, and credibility. All the qualities needed to keep a business in good running condition!
6. Helps your company attract investors Many experts have forecasted that in the future, companies with strong sustainable values will dominate the market and so investors are naturally more inclined toward investing their money in such companies.
We hope that this article has proven to be a resourceful guide, helping you understand what sustainability reporting is as well as the benefits it brings about.