Benefits of sustainability reports

The Sustainability Reports aim to inform the interest groups of a company about the management they carry out at an economic, social and environmental level. These, in turn, help companies recognize the potential risks they may face.

The organizations decide to develop sustainability Annual Reports because

• They show their commitment and transparency.
• They demonstrate their ability to participate in competitive markets.
• They plan activities to be more sustainable and place their company.
• They comply with the regulations.

Transparency with stakeholders is the main motivation to report, followed by risk management. Unlike other years, reputation has been relegated to sixth place among motivators. The difficulty of accessing data and information is detected by respondents as the main challenge. 

The document highlights seven major business benefits of sustainability reports:

1. Financial results:

The results of the survey suggest that the value of the disclosure extends to the financial balances. Studies on respondents have indicated that the market has positive reactions to the ESG information report and that those companies that disseminate information tend to have a greater flow of money.

1. Access to capital:

The study shows a preference of shareholders to invest in transparent companies, "for their commitment to stakeholders because they allow a more accurate forecast analysis and less asymmetric information."

1. Innovation, waste reduction and efficiency:

For the study, the information report allows visualizing possible changes in the processes and in the business itself. In a global survey on the sustainability report 88% of companies indicated that their reports helped them to make more efficient decisions.

1. Risk management:

According to the document, there is a relationship between sustainability management and risk management that go beyond environmental and social, and that encompasses global activity. The companies that report are better able to predict and manage the risks that emanate from the dimensions of sustainability. Making sustainability reports can allow companies to:

• Anticipate and prepare to manage risks in all business operations.
• Increase agility in process improvement
• Anticipate for future scenarios of scarcity

Reputation and consumer confidence:

Information reporting can become a powerful tool for companies that need to build or restore consumer confidence. A recent study reported that the risk of social acceptance is one of the ten biggest risks that companies face. These can benefit from transparent communication.

1. Employee loyalty:

The study reveals the positive impact of the information report on productivity and the recruitment and attraction of talent. According to the survey, more than 30% of the companies that reported saw employee loyalty increase due to the issuance of the report.

1. Social benefits:

The study concludes that companies that report their sustainability initiatives can simultaneously increase their success, reduce their negative social influence and benefit society as a whole.

Aid to prepare sustainability reports

Those organizations that wish to prepare sustainability reports can count on SUSTY.

Through an easy-to-use management system, they will obtain a more efficient way to measure, manage and report a large number of indicators for certifications, standards, awards, and reports.