The world is on the move, steadily shifting from traditional ways of doing things toward sustainable models aimed at addressing challenges facing the planet. International bodies, local human rights organizations, regional blocks, and individual governments are all in agreement that corporate entities have or have had a bigger role to play in the current precarious situation of the planet and need to adopt sustainability reporting.
The idea of sustainability reporting, as we are going to see, comes with so many benefits, but it is never easy. The process can be complex and expensive, but there is no way out of it. This is why you need to adopt sustainability consulting.
This post is a comprehensive guide to ESG sustainability reporting to determine when you should consider it and the benefits to anticipate. Finally, we will highlight the main advantages to expect from sustainability consulting.
Before looking at the benefits that come with sustainability consulting in your company, let's start by looking at its history. Although there are multiple definitions of the term sustainability, the best is probably the one provided by the Brundtland Commission report of 1987, which considers it “the ability to meet the needs of the present without compromising the ability of future generations to meet their own needs.”
Later in 1992, the idea of sustainability was emphasized when the UN held the first conference on environment and development. It became apparent that it is impossible to talk about development without factoring in the environment because the resources for production are drawn from the latter. The idea of sustainability was expanded to include the social aspect (people).
Sustainability reporting today focuses on environmental, social and governance impacts of a company's operations. As you report these impacts, we must say that the process must be conscious as opposed to sporadic. So, you need to plan for it carefully and create a report that stakeholders can see and verify the details.
Remember that sustainability reporting requires your company to work with the right framework for better results. Some of the top examples that you should consider are:
As we indicated earlier on in this post, the process of sustainability reporting is moving into a mandatory requirement. Working with a sustainability consultant can help you to understand the concept and apply it correctly in your organization. Here are other benefits that you should expect from bringing a consultant on board.
The laws and policies governing sustainability reporting are changing fast, and it can be pretty challenging to keep pace. Take the example of Hong Kong. Despite having clear guidelines for labor, corporate governance, and environmental standards, Hong Kong Stock Exchange (HKEX) added new ESG reporting requirements for all listed companies. Working with an agency makes it easy to understand all the requirements and comply with them.
The experts in sustainability matters look at your organization’s processes and define the best path for improved sustainability. This path is what you need to demonstrate to stakeholders to win their support. You might be advised to approach the concept of cutting down carbon footprint progressively by starting with staff training, changing to renewable sources of energy, and finally installing ultra-modern machinery.
One of the reasons why managers seek assistance on matters of sustainability is because they are pretty busy. In markets such as Singapore, China, and Hong Kong, where the competition is so stiff, you must keep reviewing the product design, marketing tactics, and operating strategy for success. Sustainability consulting professionals can take up the challenging task of ESG reporting so that you are able to focus on core activities of growing revenue.
When you bring on board a team of experts, they promptly review the enterprise to reveal the main challenges and opportunities. Then, they hold your hands and ensure the entire process follows the recommended steps.
When people hear of sustainability consulting, what rings in their minds is the involved cost. It is true that there is some cost involved, but it will be insignificant when compared to the long-term benefits. For example, if your company opts to go it alone, the task might involve hiring new employees, staff training, and creating new departments, but still risk getting the process wrong. If the report is labeled greenwashed, this could spell doom for the company.
The best way to cut down the costs is by working with experts. Having been in the sustainability reporting field for years, experts at Diginex.com can help you craft the best process for correct reporting. They also come with advanced sustainability management software that further simplifies the reporting process.
Depending on the contract you enter with the sustainability consulting firm, it might also be there to train your staff on ESG reporting. What an excellent way to learn from experts?
Although most investors and managers are categorical that sustainability reporting is the way to go, handling data is never easy. It is challenging because it comes from multiple sources and falls into different categories. However, this is never a challenge for consultants.
Professionals from top agencies, like Diginex.com, come with programs that can easily be customized to include all parameters. For example, the apps allow you to add data on emissions, social actions and governance to determine the ESG score. You can also count on their apps to automatically pull out data from the company management system. This will not only increase the accuracy of the Sustainability report but also make verifiability of the information easy.
With a consultancy, you will get a lot more. For example, they will help your company to craft better strategies or strengthen the existing ones for faster company growth. With the right sustainability consultancy, you can never go wrong.
As you can see, sustainability reporting is pretty complex, but it does not have to be when the right procedure is followed. Working with the best sustainability consultants makes it easy for you to not only apply the process correctly but also reap maximum benefits. Diginex.com is your home to the best professionals on matters of sustainability. Talk to our experts now to learn more about sustainability and assist your enterprise move to the next level.
The primary benefit of ESG accounting is that it helps to identify the risks and opportunities facing your company.
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