ESG Reporting: an opportunity, not a chore
From 6 April 6 2022, there will be mandatory climate-related reporting requirements for all UK registered companies and limited liability partnerships with more than 500 employees and turnover greater than £500m, along with all publicly quoted UK companies.
On the face of it, this regulation may seem to only affect the UK’s largest companies and financial institutions (over 1,300) - not so - it will also impact thousands of businesses that sit within their supply chains and form part of their wider impact.
Evidence-based reporting builds credibility
If you don’t yet report, what’s stopping you?
Any company with employees, customers and/or investors (which is 100% of companies, right?) should consider their ESG report as a golden opportunity to engage, communicate and build intrinsic value/relationships with these highly valued audiences.
You may not HAVE to report (yet) however this is changing fast and nobody likes to be a laggard.
A few things to bear in mind as you plan and write your report.
Avoid greenwash
Investors, regulators, and the broader public are exercising greater scrutiny of corporate sustainability efforts, calling out what they see as greenwashing.
Remind yourself of the latest regulations on greenwashing before you start writing.
Some of the nuances are not obvious but can easily be avoided.
Keep the purpose of the report front of mind
Your ESG report is an opportunity to demonstrate that your Board, Executive and wider teams are well equipped to understand and address ESG issues most material to your business — from climate change to human rights to diversity and inclusion.
This is not just about mitigating the risks of ESG, this is also about the opportunities it presents to help solve some of our planet’s and society’s biggest challenges.
Don’t underestimate the appetite for clear information on how companies are embracing and integrating ESG across their business.
Your report speaks to a wide range of people, from your future talent pool to your suppliers and customers.
They all want to know where you are on your ESG journey and will make decisions based on the information you present to them.
Be proud, keep it factual
This is not a marketing tool. Yes, you should be proud of your company’s accomplishments but make sure you stick to the facts.
Focus on the areas that matter by making reference to your materiality assessment.
Use facts and figures to demonstrate the progress you have made against your ESG targets.
Make sure the metrics that you include measure impact, not just inputs.
Once you have this solid foundation of evidence based metrics, you can use qualitative narrative to further engage the reader with your goals, actions and plans.
Be assured, this approach will deliver considerable value to your brand.
Humility is king
It may feel counterintuitive to report on ESG-related matters that you have found challenging to progress, however this is your chance to explain why. The reasons are usually related to wider economic or market conditions that have a knock on effect on your business. There are plenty around and you will not be alone in facing them. Have the confidence to tell the true story and your readers are likely to empathise and support.
Make it easy to navigate and make it comparable
Whilst new global ESG-related standards continue to evolve, bodies such as the newly formed International Sustainability Standards Board are working hard to establish a common baseline for disclosure standards consistent across jurisdictions and industries.
In the meantime, it’s wise to pick one of the largest global reporting standards, such as GRI or SASB, and use their reporting structures as a blueprint. This not only helps navigation of the report, it will also help to make your information comparable to your previous performance and that of peers and competitors.
If you would like help with your reporting, or just an informal chat about how to get started, we are here to help: