Sustainability reporting landscape – Our expert’s insight
Our Senior Consultant Anna Rinaldi has shared with us her view on sustainability reporting, which has become a key tool for organisations seeking to understand, manage and communicate their environmental, social and governance impacts. By systematically collecting and disclosing sustainability information, organisations can better manage performance and risks, set clear goals and targets, and support informed decision-making. Sustainability reporting also helps attract investment, enhance reputation and brand value, build trust and credibility with stakeholders, and identify opportunities to reduce costs and improve operational efficiency.
How can we categorise and use today’s sustainability reporting instruments?
The sustainability reporting landscape is made up of different instruments, each serving a distinct purpose.
- Standards: provide detailed instructions on what and how to report sustainability information. Their main goal is to ensure consistency and comparability of data across organizations, without evaluating or rating performance (e.g. GRI, ESRS, IFRS, etc.).
- Frameworks: offer a high-level structure for sustainability reporting. They guide organisations on how to think about and organise disclosures but usually do not prescribe specific metrics or mandatory data points, allowing flexibility in how sustainability performance is reported (e.g. UN Global Compact, TCFD, TNFD, etc.).
- Indices, rankings and ratings: assess and compare sustainability performance. They typically rely on quantitative indicators and sustainability risk factors, using data disclosed by companies to produce scores or rankings. These tools are often used by investors and other stakeholders to benchmark organisations (e.g. Sustainalitcs, S&P Global, GRESB, etc.).
- Certifications, provide credibility and support branding. They are awarded by independent third parties following an evaluation against predefined criteria (e.g. LEED, BREEAM, etc.).
Now that we’ve explored the main sustainability reporting instruments, it’s time to ask:
- Are there specific reporting obligations that my organisation must follow?
- What objectives do I want to achieve through this reporting?
- Who will be the main audiences for the information we share?
