What is sustainability reporting?

Sustainability reporting is the disclosure of non-financial performance information relevant to all stakeholders of a company or any other organization. The reporting disclosure can be voluntary, solicited, or required.

With the help of an ESG report, an organization communicates its environmental, social, and governance (ESG) impact, whether positive or negative, as well as its progress.


The rising importance of sustainability reporting

Sustainability reporting has been gaining traction steadily over the past thirty years. Originally, it was a useful tool for companies and other organizations to improve communication with their stakeholders, but its importance has since grown exponentially across society. Today, it is seen as proof of integrity, transparency, and accountability, as well as a way to demonstrate the commitment of a business to sustainable growth.

Another driver of sustainability reporting is investors and other stakeholders who are increasingly demanding that companies disclose their sustainability and ESG strategies. In addition, many legislative regulations are currently being developed that require companies to disclose non-financial information; some have already come into force.

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« A new definition of value is emerging, one rooted in multiple capitals that encompass human, social, natural alongside financial. »

Allen White, Co-founder and former CEO of GRI (in The Guardian)

7 reasons for professional sustainability reporting


Ensure regulation compliance

Consistent sustainability reporting is the best way to ensure that you comply with increasingly stringent regulatory requirements. Especially since future non-compliance can lead to fines and penalties and damage your company’s reputation.


Perform risk analysis

One important step for any business reporting on ESG is to measure and analyze your associated sustainability risks. This can help you identify and combat the challenges facing your organization. A sustainability reporting system can help simplify this process.


Attract investors

Investors want to know the risks associated with their investment. By making your company’s full ESG risk data easily accessible in one comprehensive package, you increase your chances of winning an investor’s trust, attracting the intended capital, and building a long-term partnership.


Meet customers’ expectations

Customers increasingly demand green products or companies with a strong environmental and social mission. At the same time, they are more aware of greenwashing. Make use of transparent reporting to build trust by demonstrating how sustainable your company operates.


Differentiate from competitors

Companies with a long-term mindset will outperform industry peers. Transparency through ESG reporting can become a significant competitive advantage, as it allows for credible validation and the ability to differentiate from products falsely marketed as green.


Avoid greenwashing

Your company can also greenwash despite having the intention to avoid it. Sustainability reporting requires transparency through data collection and monitoring. This helps identify potential areas for improvement and ensures that green marketing is actually justified.


Attract new talents

Highly skilled professionals want to work for an organization whose values align with their own. When competing in the job market, a professional sustainability report and roadmap that makes your social and environmental efforts visible will set your company apart.

Ready to start your reporting journey?

We will show you how to get started and how we can support you on your sustainability reporting journey – no matter what stage you are currently at.

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