Though a company’s annual report may seem thorough, financial reporting fails to address a big piece of a businesses’ performance. In addition to economic impacts, a company has social and environmental impacts, and corporate reports regarding these areas, often called sustainability reports, are on the rise. With more companies publishing such reports, trends in sustainability reporting are emerging.

One of the most prominent frameworks for sustainability reports is the Global Reporting Initiative (GRI). The GRI suggests items to include in a sustainability report and how to achieve high-quality content. Among the GRI guidelines for content are stakeholder inclusiveness and completeness. A report should list the company’s stakeholders, from shareholders to community members, and explain what the company is doing to address their interests. A complete sustainability report includes all significant information about a business’ environmental and social performance in clear, accurate, and credible terms. The GRI guidelines also list “standard disclosures”: important information that each company, regardless of size, type, or location, should include in its report.

The GRI is part of a joint effort to identify trends in sustainability reporting. Governments worldwide are making reporting standards mandatory. Some have issued a simple minimum reporting requirement while issuing more complex voluntary guidelines to allow businesses to go above and beyond the requirements. To enhance their credibility, some companies are using assurance, done by a third party to verify that the report is accurate and factual.

Companies are making sustainability reports more user-friendly, and the internet is playing a crucial role. As a result of increased efforts toward accessibility. stakeholders can view sustainability reports online. Some reports are organized by topic (i.e. emissions, packaging) so readers can focus on the issues that are most important to them. Some sustainability reports have tags, both within the text of the report and within other media, such as video, allowing readers to easily search the report.

Sustainability reporting is shifting towards two-way communication. Instead of simply reporting to the public (one-way communication), companies are encouraging audience participation in sustainability reporting. Businesses are reaching a broader audience by using multiple channels for communicating sustainability impacts. Interactive channels such as forums allow stakeholders to send feedback to a business in response to sustainability issues. According to the GRI and other frameworks, a business that wants to take sustainability reporting seriously should incorporate this feedback into future sustainability reports and take these responses into account when planning its next moves,.

By reporting more than just financial performance, a business can give the public more of a “big picture” of the company’s impacts. Some companies are leading the way by writing integrated reports, which cover environmental, social, and economic aspects. Holistic corporate reporting not only initiates communication between the company and stakeholders, it enhances a business’ ability to set goals and track environmental and social progress.  Leonardo Academy is helping pave the way by developing an ANSI standard for Sustainable Organizations that defines what a sustainable company or organization is and how its level of sustainability achievements can be measured and documented.

Written by :

Laura Green