What is a sustainability report and why is it important for companies to report?

Sustainability report is published by companies mostly on an annual basis and includes disclosures related to the company’s performance on the environmental, social and economic performance. Most of the companies to prepare an annual financial report however many of them do not measure, monitor or publish information on their environmental and social impact. 

In the modern world, the multinational companies have expanded across several countries and continents, they are manufacturing their products on one corner of the globe and selling them at the other. There are several issues that companies have started looking into, which include their direct impact of manufacturing and selling goods to community well-being, human rights and child abuse issues in their supply chain.  

Several companies have recognized that increasingly sustainability factors are taking center stage for consumers and sustainable operations and branding could definitely affect their growth plans positively. GE3S is a sustainability reporting consultant assisting its clients to prepare sustainability reports in accordance with the GRI standards.

The private sector has recognized that poor sustainability performance may result in slowing down a company’s growth as the consumers would opt for a greener product over others and are also willing to pay a premium for it. We have seen recently that major retailers, manufacturers, and top 100 companies have committed themselves to sustainability target whether it’s about energy efficiency or water optimization or GHG reductions, etc.

It is clearly established that environmental, social, economic and governance performance disclosure is highly important. Once the companies initiate reporting. These issues in public space they have an urge to perform better each year. This helps in increasing and setting corporate accountability as well as instilling responsible behavior incorporates functions.

The companies which report on such issues also benefit from it, for example, it paves a way for them to improve identify and manage non-financial risks which are often overlooked. This also helps in increasing goodwill for the company or the brand amongst users and therefore a company can retain loyal customers. As a sustainability reporting consultant, we help our clients measure their energy, waste and emissions intensity.

For investors and shareholders, sustainability reporting is also a means to ensure the stability and continued growth of the company’s performance on financial as well as social and environmental indicators.

GE3S has been providing sustainability services across the Middle East and Indian Subcontinent since 2010. Our experts have worked across several sectors on sustainability issues. Please reach out to us www.ge3s.org   for any query.