Sustainability reporting is part of a non-financial risk report in which a company provides transparency on their environmental and socioethical actions and outlines preventative measures for mitigating mid to long-term risks.
A sustainability report addresses how the company will succeed sustainably now and into the future in relationship to their internal and external stakeholder demands.
Advanced sustainability reporting tools enable automated data collection, provide comprehensive sources of sustainability data and thus make disclosure efficient, precise and easy. However, collecting, managing and disclosing corporate data is an extensive task. Tools are often very archaic and labor-intensive. At the same time, reporting and management software has evolved significantly and provides powerful analytics and advanced planning features to improve sustainability performance.
With sustainability reporting, for their internal stakeholders (owners, managers and employees and companies), companies address issues such as diversity, inclusiveness, social responsibility and other relevant topics. For their external stakeholders (clients, suppliers, service providers, investors, NGOs, local communities and the public at large), companies address sustainability aspects of their product portfolio, their business strategies and their targets for reducing or eliminating the harmful impacts and environmental footprints of their products and business activities.
A sustainability report also includes the sustainability organizations a company supports and the sustainability programs in which a company participates.
