4 Reasons Why Corporate Sustainability Reporting Might Be a Waste of Time
By: Alexandra Kueller
As more companies are publishing annual sustainability reports, some fear that these reports are plateauing, rather than offering more value each year. Some companies are beginning to think that producing reports are not worth the effort or money. In an article published by The Guardian last week, they stated that while sustainability reports do provide useful information, they are not being as effective as they could be.
The article provided an in-depth analysis on a report published by SustainAbility, a think tank and strategic advisory firm, examining what companies can do to help make their reports… well… not as wasteful. Below are four possible ways your company’s sustainability report might be a waste of time:
No one likes reading an article or a book that is plagued with dense language and phrases, and a sustainability report is no different. All too often, reports are filled with special wording to adhere to reporting standards, or they are bogged down my technical language. While certain key phrases or words are inevitable, don’t have your entire report filled with jargon that no one is going to want to sift through.
Failing to Connect with the Audience
Your company spends countless hours putting in the effort to create a sustainability report, but for who? Who exactly is the audience your company is trying aim their report at? Tying in nicely with the previous point, if your company is structuring the report to be read by customers, but instead reads like a report intended for upper level executives, you aren't going to have readership. Be sure to remind yourself while constructing your report who your intended audience is, and be sure to not lose sight of that.
Confusing Standards and Frameworks
GRI. IIRC. SASB. These are just three examples of some of the many reporting frameworks available to companies. But how is a company supposed to choose and navigate one of these frameworks? They're all different! Should your company go with a compliance-driven approach? Or maybe they should consider a principle-driven approach or a materiality focused take on a global framework. A single framework is exhausting as is, but having so many options might lead to “framework fatigue” and possibly...
Choosing the Wrong Framework
Even if your company does end up choosing a reporting framework, it does not necessarily mean that it will be a good fit for your company. If a company is using a framework that is not best suited for them, their reports could potentially leave out a lot of valuable information. For example, Novo Nordisk recently decided to no longer follow GRI standards and instead take an “integrated reporting” approach, since they determined that would best reflect how they manage their business.
Be sure to check out our blog post exploring how sustainability reports change over time!