Reporting and Assurance

Reporting on sustainability is not a new concept; regulators and investors view it as a well-established practice that has evolved through time.

The demand for ESG data has grown as investors and regulators recognise the importance of ESG in evaluating a company's full risk profile. They want to know that businesses are incorporating ESG into their strategy and that the board of directors are monitoring these issues. Investors also demand information in the form of qualitative disclosures and quantitative metrics (KPIs) to help them make investment decisions.

Similarly, rating agencies like MSCI, Sustainalytics, S&P, and others are increasingly active in the ESG market, assessing business performance and producing indexes to aid investors in their decision-making.

With this pressure for more information, many organisations are publishing their annual sustainability reports, showing their activities in line with adopted standards and guidelines within their industry, market, and globally.

Are you communicating volume or value?

• Are you forward-looking in the way you disclose your sustainability report?
• Have you engaged with your stakeholders to identify the things that are material to them and to your business?
• Have you been consistent with gauging progress of your performance over the years?
• Are you reporting on impact and outcome rather than activities that you do?
• Are you aligned with best in class standards and guidelines in the development of your report?

With the demand for more information on companies’ ESG performance, many reports are prepared to count the number of activities and events held but few communicate achievement of goals and alignment with the corporate purpose of organisations. Value creation involves impact and progressive performance.

For consistency, quality and measurability, companies can report in accordance with global standards and guidelines such as the GRI, CDP, TFCD etc. They provide guidelines to measuring performance and communicating value for stakeholders.

ESG reporting is not a public relation document but rather an integral part of communicating growth and resilience. Hence, it serves as a springboard for strategic transformation and growth.