Mention ESG sustainability reporting and most business managers are likely to tell you it is a new force and a pillar of success. For years, the idea of sustainability was considered a cost that could be shoved away, but not any longer. As global problems, such as global warming and human trafficking, became too much to bear, a reliable solution, not a quick fix, had to be sought. That solution is turning out to be something that apparently all know about: sustainability.
If you have a business, whether as an entrepreneur or manager, this is a relatively new concept that cannot be ignored. You need to move with the wave. This post digs deeper into sustainability reporting to demonstrate why it is the pillar to give the globe a new face.
How Exactly Does Sustainability Reporting Work?
Before looking at how ESG sustainability reporting is addressing the challenges we have today, let’s start by understanding what it is. This is the disclosure of a company’s impacts on three core areas; environmental, social, and governance. One of the aims of ESG reporting is to create a report that stakeholders can look at to make the big decision about investing in your company, buying its products, or becoming part of its community.
An ESG report is only one of the outcomes of the process, but it goes far deeper than that. The process is a conscious undertaking where companies review their operations and take specific actions to promote sustainability. Therefore, it is a way of changing focus and doing things to make your company more profitable, energy-efficient, and responsible. Your enterprise jumps into the front line in helping the world become a better place. So, let’s look at how ESG sustainability reporting is helping to address the challenges of the globe.
Creating New Thoughts about Social Responsibility
Initially, many people thought that sustainability was all about the environment, but this was wrong. After the UN Conference on Environment and Development of 1992 in Brazil, the idea of sustainability became clearer. Sustainability encompasses all aspects of people, production, environment, and business operations. Therefore, ESG reporting emphasizes this interconnectedness and helps to craft new thoughts on social responsibility.
As more companies join the train for sustainability, things can only get better. So, you should also be part of this important call.
Addressing Global Warming is Now Getting Prioritized
It has been a long debate as companies ask the big question: “should you focus on global warming and reduce revenue generation or ignore and optimize profits?” It is a misconception. The focus on global warming does not have to be your gateway to failure. Indeed, it is acting as a stepping stone for success. For example, installing more energy-efficient machinery that reduces emissions in your facility can raise the cost in the short term, but the profits will be a lot more in the long term.
By putting global warming on the strategy drawing table as an important agenda, it is now getting more focus and funding. This is why newer technologies in most areas, from transport to manufacturing, are directly or indirectly helping to end the challenge of global warming. Again, your effort will come in handy.
These are only a few highlights of how ESG sustainability reporting is helping to change the narrative about global problems. The list can be way longer. Remember that to start and properly do ESG sustainability reporting, you must correctly follow the process, from company review and materiality assessment to data collection and ESG report generation. This can be a challenge when done manually. You need to have the right ESG sustainability reporting software to get it right. Visit Diginex.com today to learn more about ESG reporting and pick the best program for your firm.
Check out this guide on how ESG software can help your company meet sustainability goals:
Infographic created by Donnelley Financial Solutions, an SEC reporting software company
