Everything you need to know about corporate sustainability reporting

Everything you need to know about corporate sustainability reporting

Companies are getting serious about sustainability. In previous articles, we've covered the best ways that firms can create a sustainability stategy that would match their brand, their values and their goals. An integral part in all of these policies is reporting. It helps you track your progress, improve and adjust your sustainability goals, measure up against the competition and fulfil governmental requirements.

The ground breaking law in the EU

In 2022, the EU released new guidelines for companies, operating in the EU to submit yearly and monthly ESG reports. The requirements stated:

EU law requires all large companies and all listed companies (except listed micro-enterprises) to disclose information on their risks and opportunities arising from social and environmental issues, and on the impacts of their activities on people and the environment.
This helps investors, civil society organisations, consumers and other stakeholders to evaluate the sustainability performance of companies, as part of the European green deal.

From 2024 this requirement will be extended to medium sized companies and to small enterprises in 2026.

With these new rules, the EU aims to create precedent that other regions and countries will follow. The new rules will make more businesses accountable for their impact on society and will guide them towards an economy that benefits people and the environment. Data about the environmental and societal footprint would be publicly available to anyone interested in this footprint.

According to these changes, companies will not only have to monitor their sustainability data, but this data will be required to be officially audited and publicly available! Similar rules are already present in other developed economies in the world and plans to submit them in other regions are popping up.

Requirements are not the only reason to report about your sustainability

Many business leaders (almost 80%) interviewed for a report by the Accenture and the United Nations Global Compact see sustainability as a path to success in the modern global marketplace. It is now essential to report sustainable statistics in order to obtain certifications and attract investors.

Stakeholders want openness and accountability from businesses, and sustainability reporting in the corporate environment is a key aspect in helping businesses enhance their green activities and their connections with investors and customers. Sustainability reporting is "a best practice followed by firms globally," according to Ernst & Young, because it can lead to incremental improvements in existing procedures.

Business leaders are under pressure to raise the quality of their reporting as more clients, consumers, and investors rely on indices and performance reviews to make decisions about which companies to support. Therefore, they attract positive attention to their business by publishing an open report on their sustainability achievements and failures from the previous year. This report reveals the company's business practices and the extent to which it takes environmental, social, and governance (ESG) concerns seriously. On the company's end, these reports can be useful as well. What procedures and practices could use improvement can be identified through the study that goes into preparing a proper sustainability report, one that emphasizes openness, accountability, and performance.

Are there any tools that can make this easier?

Keeping track of all of your processes is harder, the bigger the company is. Calculating and keeping track of the emissions data of all your machinery, as it ages, tens, or even hundreds of small eco practices you put in the office and even the transportation that your workers use to get to work. This can be more than overwhelming...

That's why there are thousands of tools that make ESG data collection easier. Here are a few:

Novisto - one of the largest in the business, working with Meta, uses cloud based solutions to aggregate sustainability data from different parts of your business into one easily accessible place.

Avarni - an advanced program, using AI to estimate the emissions of your supply chain and other parts that are difficult to quantify!

Danexpert - an all in one software, created by sustainability experts. Aimed at improving your sustainable practices, it not only manages and aggregates your ESG data, but the software and a team of experts are providing tips to help you achieve your goals faster.

What if you need even more from your software?

All of the software mentioned before is aimed at one objective - allowing you to create internal ESG reports and improving internal sustainability policies.

What about software that would allow you to easily see and input all of your sustainability practices? What if it also sent you monthly reports on your progress and a comparison to other companies in your field? That's what Greenifs are here to give you! Find out more at what our program can do for your sustainability reporting!