We've Created a Sustainability Report. Now what?
In the pursuit of a greener and more sustainable future, many companies find themselves at a crossroads after creating a sustainability report. While the effort to compile such a report is commendable, the real question arises: What's next? In this blog, we will explore the crucial steps that follow the creation of a sustainability report, the significance of reporting, and how companies can leverage this information to meet their sustainability goals.
What is a Sustainability Report?
A sustainability report is a comprehensive document that encapsulates a company's environmental, social, and governance (ESG) performance. It typically includes information on a company's carbon footprint, resource usage, social impact, and corporate governance. Crafting a sustainability report is not just a trending practice; it is a vital component of any meaningful sustainability strategy.
Why Create a Sustainability Report?
The importance of a sustainability report lies in its ability to provide a transparent overview of a company's environmental and social impact. Beyond meeting stakeholder expectations, these reports help organizations assess their performance, identify areas for improvement, and align their operations with more sustainable practices. The process of creating a sustainability report compels companies to evaluate their entire supply chain, resource usage, and overall impact on the environment.
Beyond the intrinsic value of preserving the planet, regulatory requirements are pushing companies to report their GHG emissions and adhere to specific sustainability guidelines. There are pending rulings from the Securities and Exchange Commission (SEC) that will require companies to report their greenhouse gas emissions and their organization’s risk exposure to climate change. Beginning in 2026, California will require all companies with over $1 billion in annual revenue to report their Scope 1 and 2 emissions, expanding to include Scope 3 in 2027. Partnering with a sustainability consulting company ensures not only compliance but also a strategic approach to sustainability that goes beyond mere regulatory obligations.
In today's competitive market, sustainability isn't just about being environmentally responsible—it's a key factor driving consumer decisions, particularly among Gen Z and Millennials. Studies show that 76% of Millennials consider a company's social and environmental commitment when choosing where to work, and 75% say they would take a pay cut to work for a responsible company. This growing trend underscores the importance of transparency and accountability through sustainability reporting. By showcasing their dedication to ethical practices and environmental stewardship in sustainability reports, businesses can resonate with these conscious consumers, build brand loyalty, and foster sustainable growth.
Gathering Information for Actionable Insights
To effectively address sustainability goals, it's crucial to gather comprehensive information on sustainability and greenhouse gas emission (GHG) metrics. This data becomes the cornerstone for developing impactful strategies. Once your organization has identified its material, or most relevant, sustainability metrics, you can move forward with the most impactful sustainability strategy and roadmap.
Sustainability Strategy
Each sustainability report will provide insights into the organization’s true environmental impact, uncovering metrics and impacts that may be unexpected. Use these insights to develop initiatives targeting the metrics that your organization has deemed the most material and relevant. Creating a sustainability strategy involves analyzing the organization’s entire value chain, both upstream and downstream.
Create a Sustainability Roadmap for Goal Setting
Establish clear, measurable objectives and a timeline to achieve sustainability targets. Identify sustainability-related key performance indicators (KPIs) that are the most impactful to your organization. These KPIs could be related to waste diversion, GHGs, water use, or a variety of other environmental metrics. On the social side, these KPIs may be related to diversity, equity, and inclusion (DEI) metrics or ethics that are the most relevant to your organization.
Unlocking the Potential of Sustainability Reports
Many companies are unaware of the wealth of data a sustainability report can provide. By working with us or a dedicated sustainability consultant, companies gain subject matter expertise that allows them to interpret and utilize sustainability information effectively. Our team assists in translating data into actionable strategies, ensuring a smoother transition toward a more sustainable and resilient business model.
Reach out to our sustainability consulting team, and let us help you turn your sustainability report into an action plan! By partnering with us, you tap into a wealth of expertise and a network that will drive your company towards a more sustainable and prosperous future. Let's build a world where businesses thrive while leaving a positive impact on our planet!
Written by: Joelle Friedlander, MBA
