4 Reasons Sustainability Reporting can increase the success of your company
A sustainability reporting is a report published by a company or organization about its economic, environmental and social impacts caused by its everyday activities. A sustainability report also presents the organization’s values and governance model demonstrating the link between its strategy and its commitment to a sustainable global economy. Thousands of companies around the world issue sustainability reports, and this number grows every year.
Now let’s examine 4 Reasons why Sustainability Reporting can increase the success of your company
1. You can have advantage over your competitors when you want to attract investment and enter new markets.
Sustainability reporting is a good indicator that company is ready to adapt to changing markets and respond to customer needs helping them to make informed choices. It improves that there is a transparent communication and engagement with stakeholders which brings a high reputation to the company. Very often investors prefer to invest in transparent enterprises because of existing trust between managers and stakeholders. Although reporting is not mandatory, the expectation from the companies to report about their impact is increasing.
2. Helps to improve the vision and strategy of the company and share the awareness of sustainable practices in the whole organization
Companies that decide to report their activities will need to incorporate sustainable development principles into the strategy of their companies and rethink their vision by initiating following actions:
- Stakeholder analysis: identifying parties that are directly or indirectly effected by firm’s activity including shareholders, employees, customers, suppliers etc, descriptions of the needs and expectations of these groups
- Sustainable development policies and objectives: formulating basic values that the company expects his employees to follow and set targets for operating performance. The management of the company should come up with a policy statement that can influence such kind of behavior
- Develop a corporate culture: In order to efficiently implement sustainable development practices, companies should increase the participation of employees, enforce collaborative and learning culture inside the company. For example internal reportings are a great way to reinforce positive behavior towards sustainable development. The management board can incorporate reward and promotion systems in recognition of those people who help to achieve sustainable development objectives of the company
3. Helps to reduce costs on several aspects of company’s operations and increase efficiency
Sustainability reporting helps companies to have better insights into the processes and look for areas that need change and improvement. The information that is gathered for sustainability reporting gives firms necessary knowledge to reduce their use of natural resources and thus improve the performance of the company. Transparency provided by sustainability management is a great way to evaluate company’s financial, environmental and social risks and gain insights to the areas for potential growth.
4. Fosters engagement and communication with employees and local communities
Employees are more inclined to work in enterprises that are socially responsible and promote healthy working environment both inside and outside of the company. It increases employees productivity, moreover, people may choose to do a volunteer work in such companies without expecting compensation. Sustainability reporting is also a powerful differentiator for the companies in today’s competitive job markets.
Engagement in sustainable development can shape a good image of a company in local communities which can later influence to generate positive press coverage that makes doing business easier.
There are guidelines that prepare companies for their sustainability reporting activities like GRI Sustainability reporting framework. This guideline can be a great asset for your company in your Sustainability reporting Initiative.
Join the worldwide community of companies who care about earth protection, get engaged in Sustainable Economy and create your Sustainability Report with Essential Solutions.