Sustainability reporting and technique are each vital piece of constructing extra enterprise extra sustainable. However which do you have to give attention to? Let’s take a look at the distinction between sustainability technique and reporting, with concrete definitions and examples for every. 

A simple method to consider it’s inner and exterior. A company sustainability technique outlines clear initiatives, targets and metrics so the inner technique is strong sufficient to comprehend sustainability advantages. Sustainability reporting is extra exterior, selecting to share your methods and what you’re doing to get stakeholders on board along with your resolution and to create transparency in your corporation. They completely feed into and are associated to one another however have totally different targets and outcomes. 

Usually, the exterior cues for sustainability reporting and technique may be the identical. “Geez, our competitor’s report appears to be like nice!” “Staff are asking about sustainability in surveys.” Based mostly on these exterior cues, you may then ask your self the following query. 

Associated: Methods to Enhance Individuals in Your Triple Backside Line

The primary query to ask your self in that is “Do I’ve sustainability information, info or initiatives that I need to share with folks exterior the corporate?” If the reply isn’t any, it’s vital to get a technique in place earlier than you report. 

What’s a sustainability technique?

As mentioned above, sustainability technique means you’re wanting internally at actions you have to be taking to make your corporation extra sustainable. Right here, we take a look at technique as doing an audit, creating initiatives and targets after which ensuring every worker understands their function in making a sustainable enterprise. 

From an outdoor perspective, a enterprise that’s following a sustainability technique is worried with its useful resource use, the way it’s treating staff and suppliers and profitability. The Triple Backside Line is a framework to ascertain a sustainability technique. 

What are the advantages of a sustainability technique?

A sustainability technique has been confirmed to interact staff, save cash and attraction to clients. The inner advantages are exhausting to disregard and the purpose is to economize and compete in a crowded market, a sustainability technique is a dependable wager.

In the event you’re interested in the advantages, take a look at firm sustainability studies or the web site of corporations you admire or corporations you’re competing in opposition to. If nobody else in your business is broadcasting a sustainability technique contemplate your first-mover benefit. 

What’s sustainability reporting?

Sustainability reporting is the act of sharing sustainable practices at your organization. Consider it as an annual report, however simply centered on sustainability. In the event you’re interested in sustainability studies, consider the final Fortune 100 firm you bought from or Googled. Google their title + sustainability report back to see an instance of a report. 

Associated: Why Sustainability Reporting is Vital

GRI, extensively thought of the usual for sustainability reporting, defines sustainability reporting as “A sustainability report is a report revealed by an organization or group concerning the financial, environmental and social impacts brought on by its on a regular basis actions. A sustainability report additionally presents the group’s values and governance mannequin, and demonstrates the hyperlink between its technique and its dedication to a sustainable international financial system.”

Associated: Methods to Share Progress And not using a Sustainability Report

Whereas GRI is actually the usual for bigger corporations, many smaller corporations can really feel overwhelmed by the GRI requirements or consider reporting as an all or nothing endeavor.

Small corporations shouldn’t really feel overwhelmed and as a substitute ought to take a look at their actions because the baseline for reporting, not essentially a big worldwide normal. For these smaller corporations, reporting may be likened to sharing. In content material advertising and marketing or on a webpage, an organization remains to be finishing sustainability reporting in the event that they’re sharing sustainable actions as a part of their messaging.  

Why is sustainability reporting essential?

Briefly, as a result of your stakeholders are asking for it. Reporting is all about sharing what you’re doing and ensuring folks see it. 

However who cares, you is likely to be asking. Effectively, your staff and future staff, for starters. In the event you’re uncertain if this is applicable to your organization, there’s a simple technique to resolve this and ask. Do a fast worker survey to see the place your organization stands. 

51% of staff received’t work for an organization with out robust social and environmental plans. 

It’s additionally vital to share what you’re doing and adjustments that you just’re making, each for credibility and to encourage different corporations to take motion. The one method sustainability will grow to be mainstream and normalized amongst corporations is that if everybody shares what they’re doing. 

One other technique to verify the need of sustainability reporting is to verify in case your competitor has a sustainability report. In the event that they’re collaborating in sustainability reporting, that is an incentive so that you can take part as nicely. 

The ultimate a part of sustainability reporting is buyers or future public choices. Public corporations are judged on their sustainability actions. Having a technique and reporting construction in place is a vital a part of IPO planning. 

Ought to I give attention to sustainability technique or reporting?

Based mostly on the variations described above, it is best to have indication of what is the most suitable choice on your firm. Are you centered on sharing an current technique or is a technique one thing you are still engaged on?

Reporting is accessible in case you have some sustainability initiatives or actions to share. With out something to share, it’s time for technique. These can be completed in tandem! In the event you’re engaged on a sustainability technique, you have to be centered on fascinated about reporting as nicely. 

In the event you can take these ideas and match your corporation to them, you’ll be in fine condition. Take these definitions and contemplate your personal enterprise targets, staff, technique, aggressive benefit and finances.