In 2014, a Malaysian airline with 227 passengers and 12 crew members went missing, and all perished, never to be found. This is just one example of disasters that have gripped the globe; others include the collapse of a building in Miami, Mass shootings in the US, and the fighting between Israel and the Gaza Strip that left hundreds dead. As a manager, one cannot but ask one question, “What can you do to prevent the suffering of the society?” These global issues can be addressed, minimized, or even prevented by adopting corporate sustainability reporting. This post will demonstrate why governance, as one of the core components of ESG sustainability reporting, is an essential building block for a better planet.
Understanding ESG Sustainability Reporting
Before we can look at how governance can help to promote sustainability, let us go back to the beginning, “What is ESG sustainability reporting?” It is the disclosure of information about a company’s significant environmental, social, and economic impacts. According to GRI Sustainability Reporting Guidelines (G4), it is a process that surpasses the report and extends to helping an enterprise manage change for better performance at all levels.
As you can see, the definition revolves around “setting goals and the focus on achieving them,” which can only be facilitated by the leadership or governance of the organization. Again, sustainability reporting is voluntary; therefore, efforts directed towards making the world a better place are largely dependent on governance. As a business leader, manager or entrepreneur, you have the responsibility to set the globe on a path towards a better future, a trajectory for success. The following actions demonstrate how governance can help your organization to achieve its sustainability goals.
Resources Allocation for Sustainability Reporting Process
One fact about sustainability reporting is that it comes with some costs. Whether your organization targets to cut emission rates by installing new machinery or training local groups on sustainability, you have to budget for it. With good governance, resources will be allocated for key sustainability activities and monitoring and improvements. Do not just see the cost involved; the benefits will outweigh them by a huge margin.
Avoiding Pitfalls that Hinder Sustainability
What is sustainability? The answer to this question has often been contested, with some opting to focus on areas that cast them in a positive way. However, this becomes a major pitfall that can compromise the success of ESG sustainability reporting. Good sustainability reporting is strictly guided by the principles of accuracy, transparency, and materiality, where the results are seen as a pillar for achieving the next set of goals. If you targeted to cut emissions by 35% but only achieved 20%, this might be the perfect opportunity to review the entire process. What went wrong? What improvements can be instituted?
Creating New Strategies for Success
When adopting ESG sustainability reporting, the target should not be simply to win the targeted market but a genuine call to improve the planet. Therefore, good governance sees it as a new way for developing pillars of success. For example, if you focused on cutting waste at source in 2020 and 2021, 2022 might be dedicated to enhancing social justice. Good governance should help to craft these new strategies and help make them happen.
ESG sustainability reporting is a pillar that your enterprise can rely on to reach its mandate and have a greater impact on the globe. With good governance, it becomes easy to ingrain sustainability into every process, from the production unit to HR reviews, with the aim of delivering positive environmental, social, and environmental impacts. To make this noble course even more effective and enjoyable, you should get the right sustainability management software. Visit Diginex Solutions for one of the best programs that will even automate ESG reporting.