Improve the Rating of Your ESG Report with the Following Tips

Mention ESG sustainability reporting to managers, leaders and entrepreneurs, and they will tell you it is at the core of modern business operations. By the close of 2020, more than 90% of companies on the S&P 500 were reporting their efforts on sustainability. Now, more brands are joining both voluntarily and for compliance with the existing laws. So, have you started the reporting process? If not, this is the right time.

One of the main challenges of ESG reporting is the preset high-quality standards. The report you create should correctly capture the status of the company’s effort on sustainability to help stakeholders make the decisions of working with your enterprise. The biggest concern has been greenwashing. Many investors are indicating that some reports created by companies are not comprehensive enough to help them draw the right investment decisions.

Now we have some good news for you: it is possible to improve the quality of your ESG sustainability report. Keep reading as we highlight expert tips on how to create top-rated reports for your company.

Understand the Process of ESG Sustainability Reporting

The first step of creating an ESG report that stakeholders will accept is to understand the process. Indeed, failing to showcase the process is the first sign of greenwashing. So, here are the main steps of ESG reporting.

Making the big decision to adopt ESG sustainability reporting. In many cases, this has to be sanctioned by the highest governing organ of a company, the board of directors.
A comprehensive assessment of company operations to determine key risks and opportunities.
Liaising with stakeholders to know their preferred area of focus.
Materiality assessment to determine the reporting topics.
Crafting a strategy for ESG sustainability reporting.
Gathering data, analyzing it, and creating easy-to-read reports for stakeholders.
Setting the agenda for the next reporting phase.

Internalize the Principles of ESG Sustainability Reporting

To follow the right process for ESG sustainability reporting, you need to understand and internalize the guiding principles. The most crucial of these are accuracy and verifiability. If you indicate that the company cut down emissions by 20%, make sure there is evidence for it. Remember that the report does not just have to capture the positive end; you need to also highlight the negative impacts. For example, did the strategies for ESG reporting cause an increase in operating costs? Other principles of ESG reporting include:

Clarity.
Materiality.
Continuity.
Readability.

Select a Framework Suitable for Your Business and Industry

In addition to the right ESG sustainability reporting principles, it is important to have an appropriate framework to guide you from the beginning to the end. The most common framework is the Global Reporting Initiative (GRI) framework. It is the pioneer of ESG reporting and can work with most organizations. Most brands prefer GRI because it allows them to easily capture both the positive and negative impacts. Other top frameworks you might also want to consider include:

The Sustainability Accounting Standards Board (SASB) framework.
The Task Force on Climate-Related Financial Disclosures (TCFD).
Streamlined Energy and Carbon Reporting (SECR).

Use the Best ESG Reporting Sustainability Software

To enjoy all the benefits of sustainability reporting efforts for your company, it is paramount to work with an appropriate program. Applications make it possible for you to handle multiple parameters, work with different teams, and run comprehensive analysis so that the report is accurate and verifiable. This is not all. With the right software for sustainability reporting you can also:

Cut down the cost of ESG reporting.
Increase accuracy of your ESG reporting data.
Follow with different key performance indicators.
Automate some parts of the data collection process.

As more governments, businesses, and people demonstrate support for sustainability; you cannot be left behind. This is the best time to join and ensure your effort counts in the current fight to make the world a better place. The tips we have highlighted above can help you craft top-rated reports for your stakeholders. Remember to always work with the best sustainability management software for better results, and Diginex.com has cut a name for their applications. You can also use their expertise in ESG reporting to make the reports even better.