Sustainability reporting facilitates organizations to consider their effects on a wide range of sustainability issues. This enables them to be more transparent about the threat and opportunities they face. Sustainability reporting is the central platform for communicating sustainability performance and impacts. A sustainability reporting in its fundamental form is a report about an organization’s environmental and social performance. To make this reporting to as useful as possible for managers, executives, analysts, shareholders. A unified standard that allows report to be rapidly assessed, honestly judged and fundamentally compared is a critical asset. As firms worldwide have embraced sustainability reporting, the most widely adopted framework has been the Global Reporting Initiative (GRI). It can be considered as synonymous with other terms for non-financial reporting; triple bottom line reporting and corporate social responsibility (CSR) reporting.impact assessment
Building and maintaining belief in businesses and governments is fundamental to achieving a sustainable economy and world. Every day evaluations are made by businesses and governments which have uninterrupted impact on their stakeholders, such as financial institutions, labor organizations, civil society and citizens and level of trust they have with them. These decisions are rarely based on financial information alone. They are based on an assessment of risk and opportunity using information on a wide variety of immediate and future issues. Customer Relationship Management
The value of sustainability reporting process is that it ensures organizations consider their impacts on these sustainability issues and enables them to be transparent about these risks and opportunities they face. Stakeholders also play a crucial role in identifying these risks and opportunities for organizations, particularly those that are non-financial. This increased transparency leads to better decision making, which helps build and maintain trust in businesses and governments.
Internal Benefits of Sustainability Reporting for companies and organization include:
- Increased understanding of risks and opportunities.
- Emphasizing the link between financial and non-financial performance.
- Influencing long term management strategy and policy and business plans.
- Comparing performance internally and between organizations and sectors
- Avoiding being implicated in publicized environmental, social and governance failures.
- Benchmarking and assessing sustainability performance with respect to laws, norms, codes, performance standards and voluntary initiatives. mystery audit company in india
External Benefits of Sustainability Reporting for companies and Organization include:
- Mitigating negative environmental, social and governance impacts Improving reputation and Brand loyalty.
- Enabling external stakeholders to understand the organization’s true value and tangible and intangible assets.
- Demonstrating how the organization influences and is influenced by expectations about sustainability development.