Although ESG requirements appear to be easing, it still makes good sense to produce an annual sustainability report.
If you want to maintain a strong market position in the future, it is important to promote yourself with transparency and an ambitious sustainability plan. The report does not need to contain 1,200 data points – an overview of the most relevant data points is sufficient. The VSME standard is a good option here.
We have gathered 6 good reasons why your company should create a sustainability report:
1: Concrete data from a sustainability report can create better workplaces
At ESG365, we want to create better workplaces – both internally and externally. Our experience shows that when companies collect data for their reports, they gain a better overview of where they can make improvements. This could be structural changes that create a more inclusive workplace or the implementation of climate-friendly production. A sustainability report provides concrete data on the current status and the opportunity to set goals for improvement.
2: Increased competitiveness and growth
Companies that produce sustainability reports and work towards sustainable growth automatically gain a better reputation. Transparency about their efforts strengthens their credibility and puts the company in a much better light. This is also an advantage for job seekers who are looking for companies with a focus on sustainability.
3: Meet requirements from business partners, customers, and investors
Many companies face disclosure demands from business partners, customers, and investors. Having a sustainability report ready to refer to shows both competence and credibility to the outside world.
4: Sustainability is becoming a bigger priority for many
Although it might sound like a trivial argument, sustainability is simply “in” — in other words, it is a central priority in Denmark today. It is not a passing agenda, and more and more people are taking it seriously. By implementing sustainability reporting now, companies can prepare for the requirements that will come in the future.
5: Sustainability reporting can increase employee satisfaction
When a company focuses on sustainability, it also involves social sustainability and inclusion. Such a company is often more attractive to employees and can both retain and attract talent. At the same time, employee happiness and engagement are likely to increase in an environment with a concrete focus on sustainability, wellbeing, and inclusion.
6: Save money by becoming aware of resource use
By gaining an overview of your company’s resource use, you can often save money. At ESG365, we have had a client who, by analyzing their resource consumption, discovered they could save over a million DKK by replacing fossil fuel cars with electric vehicles. This is just one example of how awareness of resource use through a sustainability report can also benefit your finances.
If you need help getting started with sustainability reporting, ESG365 has the expertise to assist you.
Article by Victoria Ørum, Communications Manager, ESG365