We have come a far way from the Industrial Revolution when the surge of factories made the environment take the worst blow.
When there was no talk of sustainability. However, with the drastic climate changes and nature’s fury that mankind had to deal with, industries became more responsible for their impact on the environment.
This is one of the reasons why Business Sustainability plans and reporting are increasing at such an accelerating rate.
Companies are not just incorporating CSR (Corporate Social Responsibilities), but they are also embracing the responsibilities toward the sustainability of the environment.
Towards the natural resources and how one needs to save them for the future generation as well.
Are you a company embarking on its journey in Business Sustainability Reporting? Then certain information is essential for the purpose of research.
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What Is Business Sustainability Reporting?
Building trust between any business and their respective government is very important, especially when this includes the betterment of the environment around.
A business sustainability report is when a company reports on its role in minimizing certain environmental issues which are caused by the functioning of the industry and also to create a level of transparency with the government and the stakeholders.
Some of the common environmental issues which companies have to enlist in their sustainability report are as follows-
- Poisonous environmental waste.
- Increase in Carbon Footprint.
- Emission of greenhouse gas.
- Polluting water bodies.
- Excessive use of exhaustible and inexhaustible resources.
Over the years, due to the drastic climate change with the depletion of the ozone layer, melting glaciers, and increasing temperatures, many industries had to sit and evaluate their responsibilities toward the environment.
In order for the resort to not look borderline disturbing, many companies are also adapting the climate change reporting framework. This framework allows them to understand the green alternatives which help in the betterment of the current climatic situation.
What Are Some Of The Major Elements Of This Report
If you are planning to make your first business sustainability report, then here are the major factors that you should look into.
1. ESG (Environmental, Social, & Governance)
ESG stands for environment, social, and corporate governance, which helps a company to evaluate its social goals and environmental goals rather than thinking about maximizing profit as a corporation.
The rating will depend on the company’s role in accelerating or minimizing the social, environmental, and governance risk. They should be evaluated in every financial review and budgeting.
2. CSR (Corporate Social Responsibility)
CSR stands for Corporate Social Responsibility. It is their duty as a corporation to contribute towards the betterment of society from a share of their own profit.
This also contributes to increasing the reputation of the company as a public image. Some of the fine examples of CSR that many companies have added in their Business Sustainability Reporting are eradication of hunger and poverty, gender equality and women empowerment, etc.
3. Employee Expectations
The reports of employee expectation through employee retention or maintaining loyalty will not only be viewed by the government but also by your employees.
The improvement of company performance highly depends on the condition of the employee. It is not limited to having a fair wage depending on the leg and brain work of each employee, but also giving them the right social and emotional environment to work productively.
Things You Should Absolutely Maintain In Your Business Sustainability Reporting
Here are the major driving factors of good business sustainability reporting.
- Transparency: When one collects and gathers such heavy loads of data, it is understandable to pose quite the difficulty at the executive level. However, one always needs to be transparent and present all the data even if one data throws some bad light on the company.
- Authenticity: No company is perfect, and in spite of all the tries, no industrial sector can go totally green without the emission of carbon footprint. However, being authentic and admitting to flaws will make it respectable for many.
- Stakeholder Engagement: The business sustainability report should show proper links and communication with that company’s shareholders. Many company reports have shown clear channels and means of communication with their shareholders. When one sees a harmonious exchange of words between the two, it automatically proves the company to be responsible for taking feedback into consideration.
Overall, a successful business sustainability report will not just show the company in a flashy light. Where they are simply highlighting the charities for the CSR or how much fewer greenhouse gases have they emitted this year.
Yes, these badges of glory are important, but at the end of it all, it is the meaningfulness of the report which actually makes an impact. This report is a way for you to communicate authentically about your company and protect the environment. Do not wait for it to be mandatory before you incorporate it.