Sustainability reporting: A shifting landscape

Each year, companies are faced with the need to report out on the “good” they’re doing. Sustainability programs have become non-negotiable - “sustainability” being all the things that companies need to do to make sure we can thrive today without putting our ability to thrive tomorrow at risk. The “things” we do go beyond just environmental impacts: we have to also consider social and governance impacts. This brings employee safety and wellbeing, ethical business practices and anti-harassment alongside the more “traditional sustainability”: greenhouse gas emissions, water use, recycling, etc.

Why is sustainability reporting changing?

Sustainability reporting is evolving from a voluntary practice that has historically involved various guidelines and frameworks such as CDP, Global Reporting Initiative (GRI), Task Force on Climate-Related Financial Disclosures (TCFD), Corporate Sustainability Assessment (CSA), Global Real Estate Sustainability Benchmark (GRESB), and Sustainability Accounting Standards Board (SASB).

According to KPMG’s Survey of Sustainability Report, sustainability reporting and carbon target setting are becoming standard practice. While voluntary guidelines remain in use, the landscape is shifting towards mandatory regulations to increase transparency and consistency. This shift aims to provide stakeholders, such as investors and consumers, with reliable, non-financial information for decision-making.

The Corporate Sustainability Reporting Directive (CSRD) exemplifies this change, and the challenges that come with it, requiring companies to report on their environmental and social impacts and to have this information audited. While CSRD implementation has been pushed back by two years for most organizations, other frameworks continue to move forward. Companies now face diverse reporting requirements that vary by region, industry, and topic, making compliance complex.

Navigating this challenge takes partnership and resources. I’ve found tools like the transposition tracker from Ropes & Gray extremely helpful. There are also numerous free webinars, white papers and other resources offered by legal and financial firms. Another helpful resource is business networks with a focus on sustainability. They provide a channel for talking through processes and understanding how others are tackling reporting. Finally, we have partnered with an accounting firm to build robust processes and controls that will assist in auditing our reporting when the time comes.