The Opportunities That Sustainable Reporting Brings to Your Business
Private as well as public companies come under the limelight for the impact they create in the community. Companies, irrespective of sizes and sectors, are encouraged to perform integrated reporting that helps them to have a clear picture of the changing world and at the same time, create long-term value. Having said this, businesses are facing more restrictions than ever, making it a necessity to manage risks and establish governance around sustainability.
Considering this, a strong compliance program can help companies get more time to respond and become better partners to the stakeholders. As reporting also brings a lot of opportunities for businesses, there is an increase in the value of reporting throughout the world. In this blog, we shall discuss the opportunities that sustainability reporting brings to the business.
The Increasing Importance of Sustainability Reporting
Risk is the new lens through which companies consider sustainability or ESG. As per reports, around 80% of companies around the globe now report on sustainability and enjoy its benefits such as better reputation, increased consumer confidence, augmented innovation and greater risk management.
One goal that every business considers is from the climate change perspective. It was a different picture not so long ago when climate change was considered an aspect that might be risky for the reputation of businesses. It was thought that it would have no impact on current or future financial performance. However, that scenario is shifting, and companies are resorting to strategies that include sustainability as one of the primary aspects.
Opportunities That Come with Sustainability Reporting
As global challenges need to be addressed, companies are trying to transform their business models and systems for the better future of the planet. There is no denying the fact that by becoming sustainable and by reporting on their sustainability, companies are fulfilling the SDGs. They are focusing on doing businesses responsibly and pursuing opportunities to solve societal problems through innovations and alliances.
Not to forget, when companies consider only monetary information in finance and decision-making, they miss significant blind spots on risks and opportunities – both for the investor and for society at large (leading to wrong impressions and irresponsible decisions). However, the scenario is changing due to the opportunities that sustainability reporting brings to the table for companies.
Opportunity to Build a Good Relationship with the Government and Stakeholders
When an organization’s focus area is non-financial reporting, it brings them an opportunity to build a good relationship with the government while targeting a sustainable world economy. They commit to bold climate commitments that put the economy on a positive course. It also helps in creating a better understanding with the stakeholders, be it investors, employees, customers or suppliers, as they are also concerned about the environment and wasteful business practices.
Maintaining a trustworthy relationship with them helps a company in better decision making and in building a better reputation in the long term. Additionally, better decisions lead to stronger performance that showcases that the company recognizes its responsibilities, understands its impact and focuses on mitigating the impact.
Opportunities to Manage Risks
Sustainable reporting also gives an opportunity to manage risk through a risk management tool (sustainable reporting), as they cannot afford to ignore potential risks related to corporate scandals and environmental disasters. As per World Economic Forum Global Risks Report 2021, most business risks are environmental. Another report by the Universal Ecological Fund estimates that climate-related costs have totaled at least $240 billion a year over the past ten years in the United States.
A strong compliance program can help a company identify emerging risks on time, which gives it more time to manage them. This helps in making the most of reporting by understanding and communicating organizational performance, rather than the production of the sustainability report being an end in itself. Above all, it can make your business more attractive to other businesses.
Opportunities to Show Transparency and Credibility
Being honest and authentic about the environmental, social and economic impacts of your business activities leads to a reassurance that you are serious about sustainability, ultimately leaving a credible impression on investors, employees and stakeholders. The organizations that showcase accurate sustainability reports on time earn trust for the long term.
Opportunities to Save Money for Your Business as Well as Customers
Through timely sustainability reporting, organizations can experience a lower cost of capital, a rise in analyst coverage and fewer forecast errors. It also helps in recognizing cost savings that come with sustainability strategies and the chances of making more profits.
Opportunities to Boost Employee Morale
What could be better than employees realizing that their efforts are yielding good results for the environment! Employees understand that they are liable to the environment and feel prouder when their organization takes relevant steps to sustainability. It boosts their morale and brings loyalty to their organization.
The Goodera Advantage in Sustainability Reporting
If companies aim to make progress in sustainability, they need to track and report the present performance against their goals. If you are one of those companies, Goodera can help you to achieve tangible progress and demonstrate to customers and investors that you are playing your part in tackling the climate and ecological crisis.
Having said that, we also understand how important it is for your organization to maintain the trust of those stakeholders without harming the company’s development. To regulate such issues, few decisions need to be taken by the company which is purely dependent on financial information.
To make all this possible, we provide you a flexible, powerful and easy-to-use platform that helps you build a strong ESG framework and simultaneously take on beneficial opportunities.
Not only do we undertake materiality assessment and give access to the KPI library to accelerate your performance, but we also help you manage the performance of your sustainability initiatives across multiple locations and communicate relevant information to your stakeholders. You can fulfill your audit requirements and report as per multiple global standards (GRI, CDP, DJSI, ABRR, UNGP, and SDG amongst others).
What do we ensure during the process?
We make sure to minimize irregularities through automated aberration flagging and regular quality checks throughout your sustainability journey. As a result, you manage risks in a better way, improve operational efficiencies, garner loyalty from employees, customers, suppliers, communities and investors and grab the most profitable opportunities for your business.
To understand more about our services, contact us