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Life Cyle Indonesia
Aug 16

What is Sustainability Reporting?



In today's world, ESG—Environmental, Social, and Governance—has become a critical focus for businesses aiming to operate responsibly and sustainably. Addressing these factors is essential as we face global challenges such as climate change and social inequality.


Considering ESG is not just about doing good; it ensures long-term success. Ignoring ESG can lead to environmental damage, poor working conditions, and lack of transparency in management. Companies now recognise their broader impact and are taking actions to minimise adverse effects and enhance positive outcomes.


In a nutshell, communicating these actions to the public is called sustainability reporting. It is a form of disclosure of non-financial performance, policies, and methodologies to the public. It encompassess environmental, social and governance (ESG) metrics, but sustainability reports often go beyond to address broader impacts and initiatives related to sustainable development.

It reassures stakeholders of a company’s commitment to sustainable growth, enhancing reputation, building trust, and attracting investors. It allows companies to showcase their efforts in environmental stewardship, resource management, ethical labour practices, and governance.


Sustainability reporting has gained global traction, with more companies engaging in it. For instance, a Governance & Accountability Institute survey showed that in 2011, only 20% of S&P 500 companies published sustainability reports. This figure rose significantly over the years, reaching 98% in 2022¹.


For companies new to this process, creating a sustainability report helps assess current standings, achievements, and areas needing improvement. Various guidelines and frameworks, such as the Global Reporting Initiative (GRI) and the Task Force on Climate-related Financial Disclosures (TCFD), provide structured approaches to compiling these reports. To simplify the reporting process, companies can use platforms like easySR, which streamline the creation of sustainability reports.


In conclusion, while the world faces numerous challenges, ESG and sustainability reporting remain powerful tools for businesses to operate responsibly and sustainably. This approach not only benefits the planet and society but also supports the long-term success of businesses.



 

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