Meeting the Information Needs of Diverse Stakeholders
After investing your efforts in crafting a robust sustainability strategy, collecting data, setting targets, and implementing impactful programs both within your company and with suppliers, the time has come to compile it all into a comprehensive sustainability report.
These reports serve as powerful communication tools, showcasing your corporate commitment to environmental, social and governance (ESG) matters. This is particularly important in today’s world, where consumers and investors are increasingly conscious of the impact of their choices on the environment and society.
When creating your sustainability report, it is crucial to consider the structure and content of the report to cater to the information needs of various stakeholders, each with their unique interests. The report should encompass data for investor analysts, responses to questions from ESG frameworks, employ the appropriate terminology for rating agencies and incorporate engaging narrative stories to resonate with a broader audience.
While every ESG report is distinct, certain essential elements are common to most. In this article, we’ll provide examples of key sections from various companies’ reports to guide you through the process.
Table of Contents and the Structure of the Report
How you structure your report and how that is reflected in the “Table of Contents” will influence the readability of your report and its ability to reach the right audience.
Effective reports have the following essential elements:
- Message from the CEO or Sustainability Leadership
- Highlights / Achievements
- Materiality Assessment: Integration with Business Strategy/Vision, Mission and Values
- Data / Frameworks
- Success Stories / Awards and Recognitions
- Optional Section – Mapping to SDGs
For example the Microsoft 2022 Sustainability Report organizes information by the nature of its influence, internal to the organization(Microsoft sustainability), partnerships with customers (Customer sustainability) or influence on the society and the planet (Global sustainability).
Another way to organize the information is along ESG categories, as illustrated in the report from Clarion Partners.
The structure and the table of content provide easy access to sections of interest to diverse stakeholders. In addition, the sustainability report should be published on the website and the structure and format on the website should correspond to the structure in the document.
Message from the CEO or Sustainability Leadership
The CEO’s message or message from sustainability leaders provides context for the company’s sustainability performance, explaining how it fits into broader industry trends, societal challenges, or strategic objectives. It is crucial in framing the report, emphasizing the company’s and leadership’s commitment to sustainability, and engaging stakeholders. It’s an opportunity to highlight the key themes and achievements in the report, guiding readers to areas of particular interest or significance.
This is the message from Microsoft’s sustainability report:
Highlights /Achievements
The “Highlights” provides a quick overview of the most significant sustainability achievements and challenges during the reporting period. It attracts readers’ attention to the company’s efforts, progress, and commitment to sustainability, providing context and a roadmap for the details in later sections of the report.
This example from the Infosys report is a good illustration of the Highlights section.
Materiality Assessment – Integration with Business Strategy/Vision, Mission and Values
This section should capture the results of a materiality assessment and highlight the company’s vision, mission, and values. It should clarify how these align with the company’s sustainability strategy, demonstrating the integration of sustainability into the organization’s core business purpose and goals and outlining the ethical framework guiding its actions.
This report from Zurn Elkay does an excellent example for this section.
This section can also include the risks and opportunities that ESG issues create for the business strategy. For example, Fortinet highlights its innovation in internet safety to combat cybersecurity risks to society.
Dassault Systems includes information about how climate-related risks are integrated into overall risk management.
Data / Frameworks
The “Data and Framework” section is important as it underpins the rest of the sustainability report. By providing clear and detailed information about data collection and analysis methods, KPIs, and reporting frameworks, the company shows its commitment to transparency, accountability, and continuous improvement in its sustainability performance.
Data for all material issues identified through a materiality assessment should be presented in this section, along with methods used to collect and analyze the data. Environmental data includes GHG emissions, water and energy usage and waste tracking. Social data includes employee engagement, diversity, labor relations, community engagement. Governance category includes management commitment, ESG process and ESG leadership.
This section should also include tables and responses to the questions about any standards and frameworks used for ESG reporting, including standards like GRI, SASB, CDP, or any industry-specific guidelines. Following recognized frameworks enhances the report’s credibility and enables stakeholders to compare the company’s performance with others using the same standards.
This section can also include assurance from a reputable third party to gain stakeholder credibility.
Success Stories / Awards and Recognitions
Success stories can engage and inspire readers, showing them the practical value of your company’s commitment to sustainability. Stories can include examples of projects, initiatives, or strategies the company has implemented that have led to significant sustainability outcomes. Personal narratives from employees or feedback or testimonials from customers, local communities, or other stakeholders, along with data to support the stories, can provide compelling evidence for ESG success. For example Adobe includes the following awards and rankings in their report.
Mapping to SDGs
Many sustainability reports also include a map of ESG initiatives to UN SDGs. This section highlights how the company is contributing the goals set by the United Nations. For example: Temenos includes it into their Integrated Report and maps their priority areas to the SDGs.
Communicating the Report
Once the report is ready, creating a communication program to publish and communicate it effectively is key to ensuring that the messages reach your stakeholders, and that they understand the content. Here’s a sample communication program:
- Inform employees about the upcoming release of the sustainability report.
- Share sneak peeks or highlights of the report on your company’s social media platforms to generate anticipation.
- Draft a press release outlining the key findings of the report and distribute it to relevant media outlets.
- Make the sustainability report available for download on your company’s website. Ensure that it is easily accessible and prominently displayed.
- Publish posts on various social media platforms (LinkedIn, Twitter, Facebook, Instagram, etc.) that highlight the main findings of the report. Use relevant hashtags to increase visibility.
Remember, the communication program should be tailored to your company’s specific needs, resources, and stakeholders. Your goal is to ensure the sustainability report is accessible to all stakeholders, and that they understand its importance and relevance to the company’s operations and their own interests.
Writing your sustainability report is an overwhelming task. If you need help, Contact Us for a free 30 minute consultation and check out additional Sustainability Strategy resources.
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