Everyone, from the United Nations to individual governments, and companies, is talking and insisting on sustainability reporting. A closer look at the top USA 500 companies indicates that more than 90% of them are already implementing sustainability reporting. If you are starting or already have an organization, the truth is that success will largely be pegged on how well you adopt sustainability reporting. So, are you ready?
For most managers and investors, the main question they ask about sustainability reporting is, “Why now?” This post takes a closer look to demonstrate what sustainability reporting is and why it is gaining traction so fast. We will also tell you the main tips for implementing ESG sustainability reporting in your organization.
A Brief History of Sustainability Reporting
Although the concept of sustainability reporting might look new, it has been around for a while. The idea of sustainability came about in 1992 during the first-ever UN Conference on Environment and Development (UNICED). During the meeting and the follow-up conference, the World Summit on Sustainable Development (WSSD) in 2002, member states agreed that to address the challenges facing the planet, the environment cannot be looked at separately from the development. To bridge the gap and bring more parties on board, a common and acceptable approach had to be found. This is where ESG sustainability reporting comes in.
Sustainability reporting is the disclosure of a company’s social, governance, and environmental impacts of its operations. It is a process that buttresses deep into an organization’s operations with the goal of enhancing long-term profitability while addressing issues on the planet. Simply put – you improve the profitability of an organization while enhancing a sustainable global economy.
Why the Focus on Sustainability is So Important Now
To understand the urgency of sustainability, one does not need to look far. Everywhere you look, the planet appears to be on a race to self-destruction. One of the common examples is the current fast loss of natural forests across the globe.
Every day, over 80,000 acres of forests are cleared for construction materials and land for agriculture. However, this goes even deeper because it contributes to the loss of biological diversity and the planet’s ability to extract carbon dioxide from the atmosphere. The lovely thing is that the problem cans be fixed through sustainability and sustainability reporting.
Here are other reasons why sustainability is so important now and you should also be part of it by reporting to stakeholders.
- Equality is a Major Challenge All Over the World
The “social” pillar is one of the most important elements in sustainability reporting. This criterion is aimed at addressing issues affecting the society, such as inequality. No country is close to achieving equality all over the world, with women and girls continuing to face high levels of violence and underrepresentation in leadership. One way of addressing this is adopting sustainability reporting, where you can target promoting equality in your board, workforce and society.
- Climate Change is More Severe Today than Any Other Time in the Past
According to the UN Secretary-General, Antonio Guterres, greenhouse gases reached a peak in 2017, about 146% higher than pre-industrial levels. With the associated impacts, from the rise in ocean levels to the loss of habitats in Polar Regions, among others, it is time to confront this challenge.
- Sustainability can Help Reduce High Rates of Child Mortality.
There is nothing as devastating as a mother, a couple, or a family having to lose a child. However, you will be surprised to learn that millions of children die every year from lack of basic needs, clean water, and healthcare. Now, you have the chance to correct this by helping to pull down the numbers either directly via programs that help to cut down water use, promoting community health, or working with groups that support community health projects.
These are only a few of the issues that ESG sustainability reporting can help to address, but how do you implement it? The simpler yet straightforward and reliable method of sustainability reporting is using an appropriate program. Consider picking and working with the best sustainability management software from Diginex Solutions.