When the concept of sustainability was first coined about 30 years ago during the first UN Conference on Environment and Development (UNCED), it marked the beginning of a journey to make the world a better place. An important cog in this journey is ESG sustainability reporting, which helps to connect the challenges we are experiencing today with sustainable solutions. However, achieving sustainability has not been easy because it requires commitment and dedication of enough resources.
Concerns have emerged about most sustainability reports being released by companies. In other cases, some companies have decried the involved costs. This, coupled with individual countries’ efforts to industrialize at all costs lead to one big question, “Is it possible for all businesses to operate sustainably?” Keep reading as we demystify the concept of sustainability and how ESG is making it easier, intuitive, and beneficial for all.
What is Sustainability?
Before looking at the benefits of sustainability reporting, it is important to understand what sustainability is. Sustainability is a term used to denote responsible use of resources in a manner that both present generations benefit but the ability of the future generations to benefit is not compromised. It looks at all spheres of the environment, including the social, development, and natural, because none of them can effectively work in isolation.
Now, sustainability reporting takes the idea of sustainability to the next level by requiring organizations to disclose their environmental, social and governance impacts to stakeholders. The report you generate at the end of the financial year acts as a reference point for stakeholders to see how responsible your enterprise is.
Can All Businesses Operate Sustainably?
The answer to this question is “Yes.” Although some brands have been highlighting the challenges they face when focusing on ESG sustainability reporting, the overall benefits are worth the efforts. Here are the main reasons why more companies are joining the list of those making ESG reports and even taking more measures to make the world better.
1. ESG Sustainability Reporting Means Better Business Success
Today, most of the top brands you see on the globe have managed to race to the top because of their focus on sustainability. Indeed, some of them started their focus and were already helping the planet through corporate social responsibility. When done correctly and consistently, more customers will want to be associated with you. Ultimately this means more sales, profits, and success.
2. More Regulatory Authorities are Emphasizing on ESG Reporting
With the benefits of sustainability and sustainability reporting becoming clearer every year, more governments and regulatory authorities are making them part of their policies. Let’s take the example of the stock market. Some, such as the London Stock Exchange and New York Stock Exchange, have put ESG reporting as a primary requirement for listing. The latest to join the trend is Hong Kong Stock Exchange. Let’s put it this way: sooner or later, all authorities will start insisting on getting sustainability reports.
3. An excellent Way to Strengthen Your Brand
The main advantage of ESG sustainability reporting is perhaps the brand strengthening for your company. The moment you adopt sustainability and put enough effort into it, more stakeholders will want to be associated with the brand. It will no longer be your call alone. The recognition you get can help to elevate your company, making it a leader in your industry.
Sustainability is a good thing and it is possible for all to get involved. Remember that you can simplify it even further by working with appropriate sustainability reporting software. A good example is Diginex, which helps to automate the reporting process and ensure you generate accurate reports. Do not be left behind as others march with this noble course of securing the planet.
