Sustainability Reporting:
Unlocking Opportunities
and building a resilient
Future
1
Introduction
In an age where the pursuit of sustainable and responsible business practices is no longer an option but a necessity, organisations find themselves at a crossroads. The global community increasingly demands that companies not only generate profits but also embrace their roles as stewards of the environment, champions of social equity, and guardians of ethical governance. This shift has propelled sustainability reporting to the forefront of corporate strategy and accountability and has also unlocked an array of new opportunities to foster enduring success.
2
The Importance of
Sustainability Reporting
2.1
Defining
Sustainability Reporting
Sustainability reporting, also known as corporate sustainability reporting or triple bottom-line reporting, is the practice of transparently communicating a company’s economic, environmental, and social impacts and performance to its stakeholders. This reporting goes beyond traditional financial reporting by encompassing a broader spectrum of considerations, including environmental conservation, social well-being, and ethical governance. An essential aspect is aligning with the United Nations Sustainable Development Goals (SDGs), a global framework addressing key challenges like poverty, climate change, and justice. These set of goals serve as a great way to measure a company’s sustainability success. Your report should involve the disclosure of information about a company’s efforts, initiatives, targets, achievements, and challenges related to sustainability.
2.2
Why Companies Should
Adopt Sustainability Reporting
3
Sustainability Reporting
in the Asia-Pacific
3.1
Overview of Sustainability Reporting
Requirements in the Region
Across the Asia-Pacific region, there is a spectrum of sustainability reporting requirements that businesses must contend with. While some countries have established stringent regulations, others rely on voluntary reporting standards.
4
Benefits to
Different Stakeholders
4.1
Investors and Shareholders
Sustainability reporting isn’t just about goodwill; it’s about bolstering your financial standing too. When a company lays out its sustainability strategy, it’s sending a clear signal that it’s committed for the long haul. This can significantly enhance the appeal of your investments. In a report published by Morgan Stanley and its Institute of Sustainable Investing, 80% of the asset owners surveyed, said that they actively integrated sustainable investing in 2019, up 10 percentage points from Morgan Stanley’s last biennial survey in 2017. As more investors prioritize ethically sound companies, sustainability reporting can serve as a strategic advantage.
4.2
Customers and Consumers
Let’s turn our focus to the cornerstone of our business – customers and consumers. When they encounter your sustainability report, it’s akin to a handshake that builds trust. They aren’t merely purchasing a product; they’re supporting a brand with a conscience. The transparency in your efforts to make a positive impact elevates their sense of connection and confidence in their choices. Websites likek IMPAAKT and Good On You serve as a good way to get your sustainability status out there, but it requires the consumer to go looking for information. They’re certainly not going to read a 40 page report everytime they make a purchase, so it’s up to you to give them that information. This is where a communication strategy post launch of the report comes in-play. Integrating your report into your brand and marketing is a sure-fire way of ensuring your customers know you care about them and the things that matter to them.
4.3
Employees and the Workforce
For your employees and the broader workforce, sustainability reporting represents an affirmation of your commitment to creating a positive workplace culture. It demonstrates that your organisation cares not only about financial performance but also about environmental and social impacts. Through sustainability reports, you can showcase your dedication to fair labor practices, diversity and inclusion, employee well-being, and professional development opportunities. By engaging your workforce in sustainability initiatives and communicating your achievements, you can foster a sense of pride and purpose among employees, ultimately leading to increased loyalty, productivity, and retention.
4.4
Communities and Society
Your commitment to sustainability also extends to the communities in which your organisation operates and society at large. Sustainability reporting allows you to showcase your efforts to minimise negative impacts, support local communities, and contribute to societal well-being. It provides a platform to communicate how you are addressing environmental concerns, supporting local initiatives, and fostering economic development. By highlighting these contributions, you not only build trust with the communities you serve but also strengthen your reputation as a responsible corporate citizen, which can lead to enhanced brand value and positive relationships with stakeholders.
4.5
Government and Regulators
As authorities worldwide recognize the significance of ESG factors in financial markets, transparent reporting becomes critical for regulatory compliance. By demonstrating your commitment to sustainability through comprehensive reporting, you can navigate regulatory requirements more effectively, mitigate legal risks, and foster a collaborative relationship with government agencies. Our services ensure that you present your commitment to sustainability in a way that engages regulators and stakeholders.
5
Sustainability Reporting
as a Marketing Tool
5.1
Enhancing Brand Reputation
Think of sustainability reporting as a trust-building exercise. When you open up about your company’s efforts towards sustainability – whether it’s reducing your carbon footprint, using eco-friendly materials, or supporting community projects – you’re showing that you’re serious about making a positive impact. This transparency boosts your brand’s reputation and helps you stand out as a company that’s not just about profits, but about doing good for the world.
5.2
Engaging Customers and Building Loyalty
Customers today don’t just want products; they want to connect with brands that share their values. Sustainability reporting gives you the chance to tell a meaningful story. When you share your journey towards sustainability, your customers get a glimpse of the passion and commitment behind your business. This connection builds customer loyalty that goes beyond the product itself. And the proof is clear! The Harvard Business Review recently published research stating that when Gen Z and Millennial customers believe a brand cares about its impact on people and the planet, they are 27% more likely to purchase it than older generations are. Since younger generations are soon going to have the most purchasing power, why not get ahead of the curve and start tapping into that power.
5.3
Gaining Competitive Advantage
In a crowded market, differentiation is key. Sustainability reporting can be your ace up your sleeve. The same Harvard Business Review report showed that when Gen Z and Millenials “rate a brand highly on transparency, they are 30% more likely than older generations to spend more money with it and 20% more likely to choose it over its competitors.” By showcasing your dedication to sustainability and transparency, you’re showing that you’re a forward-thinking company that’s ready to adapt to the changing needs of both consumers and the planet. This not only sets you apart but also positions you as a leader in your industry, which is just as important as gaining market share and being innovative.
5.4
Targeting Ethical and Conscious Consumers
There’s a growing tribe of consumers who actively seek out businesses that align with their ethical values. These conscious consumers are more likely to choose products and services that reflect their beliefs. A 2020 McKinsey US consumer sentiment survey revealed that more than 60% of respondents said they’d pay more for a product with sustainable packaging. But how are they supposed to know when a product is more sustainable if you don’t tell them? When you incorporate sustainability reporting into your marketing strategy, you’re essentially waving a flag to attract these like-minded customers. It’s a win-win situation.
In a nutshell, sustainability reporting isn’t just about ticking a box – you also have a unique opportunity to build trust with your consumers and stakeholders. When you take the extra step to leverage your commitment to sustainability as a marketing tool you are able to create a brand that resonates with today’s conscious consumers. You get to build trust and loyalty, whilst gaining a competitive edge in the market.
6
The Future of
Sustainability Reporting
Customers today don’t just want products; they want to connect with brands that share their values. Sustainability reporting gives you the chance to tell a meaningful story. When you share your journey towards sustainability, your customers get a glimpse of the passion and commitment behind your business. This connection builds customer loyalty that goes beyond the product itself. And the proof is clear! The Harvard Business Review recently published research stating that when Gen Z and Millennial customers believe a brand cares about its impact on people and the planet, they are 27% more likely to purchase it than older generations are. Since younger generations are soon going to have the most purchasing power, why not get ahead of the curve and start tapping into that power.
6.1
Evolving Regulatory Landscape
In the realm of sustainability reporting, the regulatory landscape is evolving at a remarkable pace. Governments and financial authorities are recognising the significance of ESG factors in financial markets. New laws and regulations are emerging globally to standardise ESG disclosures, requiring companies to be more transparent about their sustainability performance. Sooner or later you won’t have a choice whether you’re a small company or a big company. As we’ve seen with Singapore, it’s just a waiting game to see the inevitable that non-listed companies will also be required to provide these reports. The EU has just come out with their new regulatory requirements, the US has their own requirements and as we know the UN’s SDGs serve as a universal framework when it comes to sustainability goals. Compliance with these evolving regulations will become paramount. In the Asia-Pacific we will absolutely be following their lead when it comes to regulations, but why aren’t we following their lead when it comes to execution? This is where a robust reporting process and integrated ESG strategies are necessary not only to keep up with the curve but to stay ahead of it. Our services are poised to assist corporations in navigating this dynamic regulatory environment, and ensure they leverage sustainability reporting as a strategic tool for long-term success.
6.2
Technological Advancements and Digitisation
In an era of rapid technological advancement and digitisation, the future of sustainability reporting is being transformed. Innovations such as big data analytics, artificial intelligence, and blockchain are revolutionising how companies collect, analyse, and report ESG data. These technologies enable more accurate, real-time, and actionable insights through data capturing, allowing businesses to identify trends, set targets, and track progress more effectively. The data is there ready to be captured and highlighted, but if you stick with the old way of reporting, you will be losing out on the immense benefits sustainability reporting can give you for the longevity of your business. Our services leverage these technological advancements to streamline the sustainability reporting process and provides corporations with the tools to communicate their sustainability achievements in a compelling and engaging manner. As digitisation continues to shape the business landscape, our solutions ensure that your sustainability reporting remains ahead of the curve, driving positive outcomes for your organisation.
7
So Now What
Now that you understand how vital sustainability reporting is for society and building trust with consumers and stakeholders, let’s consider how to share this information effectively. Honestly, not many people will read a long, 40-page report. That’s why it’s crucial to adopt a digital-first approach.
Going digital-first has several benefits. Firstly, it helps companies present their sustainability efforts in an engaging way, making it easier for people to understand. Secondly, it simplifies how data is collected, which makes it easier for companies to capture that data and set goals, targets and growth strategies accordingly. And, it allows for real-time updates, ensuring that the information is always current. This change shows that companies value transparency, adaptability, and a sustainable future while making sustainability reporting more accessible. Otherwise what’s the point of all of this if no one is going to read it.
8
Our Comprehensive
Sustainability Reporting Solutions
Paul & Marigold is a branding, creative and corporate communications agency, with a focus on digital responsive corporate reporting. Or as we like to call it a digital first approach!
We believe that corporate reports should not be mundane documents in print, as PDF’s, or flip pages that fade into obscurity after a fleeting moment of attention. Brimming with rich content about your company, annual and sustainability reports serve as exceptional branding and marketing tools.
Through a digital responsive report, a platform for immersive stakeholder experiences, amplified engagement, and dynamic brand communication is created.
Once your report is up, we manage it to amplify the overall reach of the report, ensuring it remains at the forefront of the minds of both existing and potential stakeholders. We do this by dissecting the report and tailoring its relevant content to captivate specific target groups and harness the power of social media, to achieve your branding and marketing objectives.