Businesses all over the world are paying more attention to reporting on their sustainability performance. Ecomatters has a wealth of experience in supporting these companies. Our strategic advice, target-setting and reporting services ensure that your sustainability reporting meets regulatory requirements as well as your corporate objectives.
We support our clients with:
- Design and support in corporate sustainability reporting systems, including strategy development and target setting (science based targets)
- Development of customized data collection systems, including tools and manuals
- Support in the review or audit process of sustainability reporting as part of the annual report or Carbon Disclosure project.
- Sustainability reporting that is compliant with Greenhouse Gas Protocol, Global Reporting Initiative Standards, and Carbon Disclosure Project guidelines
- Help you calculate carbon emissions under your direct control (scope 1 emissions) as well as your organisation’s indirect (scope 2 and 3) emissions
- Execute Natural capital accounting and other monetization studies
- Perform Eco Efficiency and lifecycle costing studies
Sustainability reporting helps companies to communicate their multifaceted environmental, social and governance value
Why Sustainability Reporting?
Businesses all over the world are paying more attention to reporting on their sustainability performance, specifically related to Environmental, Social, and Governance (ESG) aspects of their activities. This is often directly driven by investors’ and consumers’ increasing interest in ESG performance of a company. Reporting helps companies to communicate their multifaceted value, benchmark own processes against the market, reduce costs and improve efficiency, develop long-term policies and management strategies, and eventually mitigate negative and boost positive ESG impacts.
Traditionally, ESG reporting is done via an annual sustainability report (corporate sustainability reporting, CSR). Although, more and more organisations are now reporting on their non-financial performance as part of their annual report (integrated reporting). Following common reporting frameworks, such as the Global Reporting Initiative (GRI) standards, helps to guide through the process and present a comparable result valued by the stakeholders.
Choosing what and how to report on the ESG aspects, organizations should firstly indicate why it is necessary, the importance for internal and external stakeholders, the possible legal requirements, what the company’s largest impacts could be, and the available resources conduct the reporting. Such elements help to identify relevant aspects and indicators, and the framework of reporting.
Relevant sustainability performance and targets are often industry specific, but one common target is shared between many industries: the company’s carbon footprint. Measuring your carbon footprint is an advantageous way to start taking a look at the overall impact your product and organisation has on the environment and society, and setting emission reduction targets, including Science based targets. Carbon calculations are also necessary for sustainability reporting, such as complying with the Global Reporting Initiative standards, participating in the Carbon Disclosure project, or seeking an Eco Label.
Focusing on reporting health and safety (HSE) performance of the company’s activities (or separately its’ products) could be one of the most traditional approaches. While characterized by somewhat less connectivity to environmental, financial, and landscape-social aspects, nowadays HSE’s value for the modern investor and customer is somewhat limited. As it is grounded in direct impacts and norms, it is one of the most straightforward methods and inevitable to comply with regulations.
Companies are also reporting on their ESG impact is via impact reporting focused on the negative and positive externalities of the company’s business activities. Businesses and organizations rely on many resources including raw materials, industry knowledge, employees, investors and consumers. These can be categorized into different forms of ‘Capital’. These are: Natural Capital (environmental), Economic Capital (financial), Human Capital (knowledge and skills) or Social Capital (societal).
One way to assess the contribution of a company is to measure the value of these resources by quantifying the impact into financial (monetization) or physical terms. By assigning a value to various environmental impacts, it can be more easily compared to other indicators and communicated to management. For examples, this approach can be applied using Eco Efficiency Analysis, where financial information is combined with environmental information in order to optimize reduced environmental impact in proportion to a product’s cost-effectiveness.
The range of projects for a diverse set of clients illustrates the vast experience we have with sustainability reporting