Yes, it is possible to run your business sustainably. Sure, it involves some costs, but the benefits of sustainability outstrip the cons by a huge margin. In one of the recent studies done by McKinsey, about 70% of the respondents indicated that their companies had installed formal governance of sustainability.
This post takes a deeper look into sustainability to determine what it is. We will also tell you the secret to achieving sustainability – ESG corporate sustainability reporting.
Sustainability: What is It?
In business, sustainability refers to operations without causing negative impacts on the community, environment, or society.
The main goal of sustainability is to make businesses have a positive impact on a wide range of economic, environmental, and social factors at different levels of operations.
In addition to addressing global challenges, sustainability can help you to drive business to success. Investors target factors such as water usage, carbon footprint, and community development in sustainability. One of the best ways of achieving your sustainability goals is using ESG sustainability reporting.
ESG Sustainability Reporting: How Does It Work?
Sustainability reporting is the disclosure of a corporate’s environmental, governance, and social goals. It also includes the efforts that a company is putting towards achieving them.
Although the governance, environment, and social focus are the primary pillars in sustainability reporting, the best international practices have refined the scope.
For example, the content of the report can include the United Nations Global Compact (UNGC) Principles and the Organization for Economic Co-operation and Development (OECD) Guidelines for Multinational Enterprises. Therefore, the reporting may also include details on some or all of these details:
- Risks and opportunities that are associated with things such as resources shortage, climate changes, and regulations related to the environment.
- Waste and pollutants production.
- Participation in the works of community groups towards environmental conservation and benefits to the society.
- The company’s use of non-financial resources, such as water, forestry products, energy and fossil fuels.
- Policies and strategies taken by your company towards corporate sustainability.
- Innovations adopted by a company in relation to services or goods that help advance the sustainability agenda.
Benefits of Good ESG Sustainability Reporting
When done well, sustainability reporting can yield awesome benefits for both your organization and the planet.
First, it increases awareness of environmental risks facing your enterprise and the society, and also highlights opportunities for overcoming them. Other benefits of using ESG sustainability reporting include:
- You are able to appreciate how the financial and non-financial performances of your company are related.
- Helps to enhance the long-term management of business strategies and planning.
- Makes it easy to streamline processes, cut operating costs, and enhance overall efficiency.
- A great way to mitigate the implications of negative environmental governance and social governance implications.
- A perfect method of building positive relationship with stakeholders.
As you can see, the benefits of ESG sustainability reporting are many, but how do you achieve them?
The best method is working with sustainability management software which makes it easy for you to follow all the components of environmental, economic, and social sustainability. No matter your type of business, using the appropriate sustainability tool can help you to make the world a better place.