Every year, new laws and policies are passed to define how businesses are supposed to work. In the last couple of years, ESG sustainability-related laws have become very common as governments and regulatory authorities move to address the ills facing society. Discover benefits of an Operational Sustainability Software.
One example is the EU, which has recently passed the Taxonomy laws that seek to classify business activities so that stakeholders can determine if they are sustainable or not.
UK, Singapore, Australia, and New Zealand, among other parties, have also adopted or are in the process of adopting legislation that demands ESG sustainability reporting. In Hong Kong, the Hong Kong Stock Exchange (HKEX) has recently passed laws requiring that all listed companies produce annual sustainability reports.
No matter the industry your business is based in, ESG is extremely important. This is why you should have the right operational sustainability software. The app makes it easy to gather the right data and present reports that will make stakeholders want to work with your company.
Operational sustainability software
ESG sustainability reporting is the process of disclosure of a company’s environmental, social, and governance impacts. By creating reports that stakeholders can review, it becomes easy for them to appreciate the efforts taken by your business to promote sustainability (know more about ESG consulting).
In addition to creating reports for stakeholders, the process of ESG sustainability reporting helps to explore key opportunities and risks of a company (all about GRI Standards). . Therefore, you will be setting your business on a path to success but following the best practises to achieve positive impacts to the environment and society. Here are the main steps to follow for ESG sustainability reporting operations:
- Do a comprehensive review of the company’s operations. The assessment will help you to identify key opportunities and risks facing the company.
- Involve stakeholders to understand what they would like the company to focus on. Do they want the company to cut down emissions or focus on social equity in the neighbourhood?
- Do a materiality assessment to determine the reporting topics for your ESG reports.
- Create a strategy for your ESG sustainability reporting. This should include key performance indicators (KPIs), short-term goals, long-term objectives, and continuity clauses.
- Gather data and analyse it. Note that data collection should start when you make the decision to adopt sustainability reporting. However, most of the information is gathered after installing the reporting strategy.
- Create your report and publish it. Remember to ensure that the report is anchored on the principle of continuity to act as the platform for the next reporting phase. Do you know the science based targets initiative?
The Position of Operation Sustainability Software
When preparing a sustainability report, you have to ensure it strictly adheres to all principles, especially accuracy and precision. This focus makes it very challenging and near impossible for most companies to create quality reports. This is why you need the best sustainability reporting software.
With the right ESG sustainability app, it becomes easy to understand and follow the process. Particularly, you will be able to follow the selected reporting framework, be it Global Reporting Initiative (GRI) or the Task Force on Climate-Related Financial Disclosures (TCFD), for greater accuracy. All about TFCD reporting here.
Recently, concerns have emerged about the quality of ESG reports being released by some companies. Stakeholders, especially investors, complained that the reports they got were not thorough or accurate enough to help them make the right decisions.
You can stand taller than your peers by using operational sustainability software. The app offers you the best opportunity to not only gather the right data but also analyse and prepare the best reports.
With a sustainability reporting app, it becomes pretty easy to extend the idea of sustainability to all areas. For example, you might have decided to focus on cutting down emissions, but the app can help you to extend this objective.
To make a bigger impact with your report, include more activities, such as training staff on sustainability and efforts to push suppliers to change to sustainable practises. This will be a lot easier with operational sustainability software.
Sustainability reporting is the new force defining operations and organisation operations in both private and public sectors. As more stakeholders amplify their call for responsible operations from businesses, you can only be assured of success by focusing on sustainability reporting.
To follow the process correctly and release accurate reports, you should pick and work with appropriate operational sustainability software. Visit Diginex.com to see the best apps, get expert assistance, and enjoy seeing the company grow.