All posts by : Huda Ali

Now, you might be thinking, “How does reporting on our environmental and social impact benefit our team?” By transparently reporting on your environmental and social impact, you not only demonstrate your company’s commitment to making a positive difference but also create a more engaged and motivated workforce.

First off, let’s talk about employee engagement. Did you know that companies with strong sustainability programs have better employee morale. When employees see that their company is committed to making a positive impact on the world, it boosts their pride and motivation. Sustainability reporting serves as a powerful tool to communicate your company’s values and efforts to create a better future, which can inspire and engage your workforce on a whole new level.

But it doesn’t stop there. Sustainability reporting also plays a significant role in attracting and retaining top talent. In fact, a survey by Deloitte found that 61% of millennials consider a company’s sustainability performance when deciding where to work. Younger generations are increasingly seeking purpose-driven organisations that prioritise environmental and social responsibility. By showcasing your sustainability efforts through transparent reporting, you’re not only appealing to potential hires but also strengthening your ability to retain your current talent.

Now, let’s talk about the big one – productivity. A sustainable workplace isn’t just good for the planet; it’s good for your bottom line too. Research from Harvard Business Review shows that companies with strong environmental, social, and governance (ESG) performance are more likely to have engaged and productive employees. When your team knows that the company is making a positive impact, they’re more likely to feel motivated and committed to their work. It’s a win-win situation – your employees feel good about the work they’re doing, and your company reaps the benefits of their increased productivity.

Beyond employee satisfaction, sustainability reporting can also have a direct impact on your company’s reputation. Two-thirds of consumers say they will pay more for sustainable products.  By transparently reporting your sustainability efforts, you not only enhance your brand’s reputation but also gain a competitive edge in the market. Consumers are increasingly conscious of their environmental footprint and are willing to support businesses that align with their values. When your company demonstrates a commitment to sustainability through transparent reporting, it builds trust and credibility with consumers, ultimately fostering brand loyalty. Moreover, in a competitive marketplace, a positive reputation for sustainability can differentiate your brand and attract environmentally conscious customers. Embracing sustainability reporting not only benefits the environment but also positions your company as a responsible and forward-thinking organisation, paving the way for long-term success and profitability.

Now, let’s talk about the importance of making these sustainability reports accessible and engaging for your employees. Displaying these reports well is crucial to ensure that your employees can easily access and understand the information. Utilising interactive digital platforms, infographics, and engaging storytelling can make the reports more accessible and appealing to your workforce. This can enhance their understanding and appreciation of the company’s sustainability initiatives, fostering a stronger connection between the employees and the organisation’s sustainability goals.

Sustainability reporting isn’t just about compliance; it’s about creating a positive impact on your employees and workforce. By transparently communicating your sustainability efforts, you can boost employee morale, attract and retain top talent, increase productivity, and enhance your company’s reputation. It’s a win-win for your people and the planet. So, let’s continue the journey towards a more sustainable and engaged workforce – one report at a time.

There is a lot out there on how to put together a sustainability report, how to build the story, check lists etc. From individuals who have the experience in developing a sustainability report to firms and consultants.

What is not out there is much on how to communicate the sustainability report and its story. How to reach the right stakeholders, how to develop a marketing and communication plan to ensure that your efforts are effectively conveyed to your target audience for the long term, till the next report is out.

The communication plan for a sustainability report needs to start before work beings on the report, not after its completion. A close collaboration between the sustainability team and communications team is the best way to ensure a successful plan.

In addition to a pdf, a press release and perhaps a press conference a digital first (interactive and responsive reporting) approach should be the first decision made to complement your overall plan.

Here are some items that should be part of your marketing & communication plan:

1. Identified Key Messages
2. Defined Target Audience
3. Marketing Channels
4. Engaging Content
5. Social Media Campaigns
6. Events or Webinars
7. Employee Engagement
8. Analytics
9. Feedback and Conversation

For anyone who would like to find out more, feel free to DM me.

There is a steady increase in mandatory sustainability reporting globally, and a greater understanding that sustainability does have an integral part in the strategy of a business. Having influence on the financial returns, opportunities and wellbeing of a company in the long-term.

The question being asked by those new to sustainability reporting, is where do we start? One good place to start is to look at the existing tools and systems in hand, such as your company risk management system.

Traditional risk management actually plays a vital role in sustainability reporting, by integrating ESG risks into your conventional risk management framework comes a richer analysis around the companies risks and a more meaningful cohesive narrative through your corporate reports.

The following are some key areas that traditional risk management looks into, which would contribute to providing a structured and systematic approach in identifying, assessing and monitoring sustainability risks. Subsequently creating a well-rounded company risk management system.

1. Identification of Risks
2. Materiality Assessment
3. Integration of Sustainability into Overall Risk Framework
4. Scenario Planning:
5. Quantification and Measurement
6. Mitigation and Controls
7. Reporting Transparency
8. Regulatory Compliance

Would love to hear your thoughts on how sustainability and risk management can align.

Although digitalisation in the world of sustainability reporting is increasing, there still seems to be hesitation amongst businesses and decision makers to make the transition from just having a pdf to also having digital responsive report (microsite).

When presented with the advantages, many can see how it makes sense to make the transition, yet the common concerns that arise are to do with costing and a resistance to change.

Cost: Digital responsive reporting is not necessarily a costly affair. In fact, in comparison to the investments being made on software solutions that help companies track and report on ESG metrics, there is no comparison.

In a recent article by Deloitte, the prediction is that the revenue from software tools will climb from under an estimated US$800 million in 2023 to just more than US$1 billion in 2024.

I can confidently say that companies are no going to be spending US$1 billion on their sustainability communications.

Resistance to Change: Most of us do not take to change that easily, especially if we are comfortable with existing methods. What many are failing to understand is that changes in the reporting landscape are unavoidable, even more so no than in the past. Stakeholders are increasingly demanding greater communications and transparency. Digital responsive reporting is just the first step in a Digital 1st approach.

Ultimately, the decision on whether to go with digital responsive reporting is increasingly becoming a no brainer. The concerns and advantages can be weighed, but companies need to more engaging, which cannot be done via a pdf.

Whether it is by choice, or mandatory, sustainability reporting is not exclusive to large and listed companies; listed or non-listed small companies can also benefit from and should engage in sustainability reporting.
Although small companies might have different resources and capabilities, they can still make meaningful contributions to sustainability and enjoy similar benefits that a larger company may; in areas such as stakeholder trust and engagement, risk management, investors, attracting new talent and a having a competitive edge.

Here are some key considerations and tips for small companies when engaging in sustainability reporting:

1. Start with Materiality: Identify the most relevant sustainability issues for your business and stakeholders. Focus on areas where your company can make a significant impact and align with your core values and business activities.
2. Set Clear Goals: Define specific and achievable sustainability goals that are meaningful for your company’s size and capacity.
3. Focus on Key Metrics: Concentrate on key sustainability metrics that demonstrate your company’s impact and progress.
4. Use Simple Language: Choose clear and concise language in your sustainability report to make it easily understandable for all stakeholders, including customers, employees, and investors.
5. Leverage Technology: Utilise digital tools and platforms for data collection, reporting, and communication.
6. Engage Employees: Encourage their participation and contributions, as they can be valuable advocates for your sustainability initiatives.
7. Collaborate with Partners: Highlight your collaborations in your report to showcase your commitment to sustainability.
8. Be Transparent about Challenges: Don’t shy away from sharing challenges and areas for improvement in your report. Transparency builds credibility.
9. Tell Your Story: Stories can resonate with stakeholders and showcase the value of your sustainability efforts. Content is value, use social media to keep on sharing.
10. Keep It Concise: Focus on quality over quantity and keep your report concise and relevant.
11. Benchmark and Learn: Compare your sustainability performance with industry peers and learn from best practices.
12. Involve Stakeholders: Stakeholder engagement demonstrates your commitment to listening and responding to their needs. This includes shareholders, investors, partners, employees and consumers.
13. Integrate with Business Strategy: Link your sustainability efforts with your overall business strategy.
14. Consider GRI Standards: If applicable, consider using the Global Reporting Initiative (GRI) Standards as a framework for structuring your sustainability report.
15. Update Regularly: Communication builds trust and demonstrates continuous improvement. Come up with a communication strategy so that your hard work and content does not go to waste.