Top 5 Reasons: Sustainability Reporting

Sustainability and how it should be reported is constantly changing, but the need for it certainly is not going away any time soon. The role that corporates play in communities, countries, regions and globally has never been more important and scrutinized as it is today. Similarly the expectations on the corporate citizen to present that impact has never been in such demanded as it is from internal and external stakeholders.

Given that this is an emerging area, it is generally accepted that there isn't one definition of what sustainability reporting actually encompasses. Probably the best starting point is with the Global Reporting Initiative (GRI) who describes sustainability reporting guidelines as "...the practice of measuring, disclosing, and being accountable to internal and external stakeholders for organisational performance towards the goal of sustainable development."

Whilst countries like Germany, Japan and the UK seem to be leading the pack when it comes to sustainability reporting, Australia is considered to be lagging. So why would your company initiate sustainability reporting? Here are my top 5, although there are many more.

Top 5 Reasons to Start Sustainability Reporting Today:

1. Reputation.

The reputation of your company is weighted on the alignment to global trends and how your company's activities affect stakeholders. The perception of participation in programs that distinctly demonstrate a proactive role in the community and the environment show a measurable concern that works towards enhancing the corporate reputation.

2. Financial Returns

Deploying a sustainability initiative involves gathering data across the organisation and often times the supply chain. Resource usage, waste and analysis of business processes is typically aggregated in a way that allows companies to understand inefficiencies and cost savings opportunities.

3. Compliance

The areas of compliance are always changing and seem to becoming more demanding, but it is almost certain that there will be more requirements relating to reporting carbon credits and green house gas emissions. By becoming savvy in sustainability reporting now, you can be ahead in the race to provide this information.

4. Competitive Advantage

What better way to differentiate your company's brand, products and services from the others in your industry than to establish a centre of excellence relating to sustainability? Customers have been making purchasing decisions based upon the environmental and social footprint for years. This trend continues to differentiate those that are conscious from the companies that are oblivious to the effect on global stakeholders. Trading partners and the supply chain that are effectively "going green" will demand the same transparency relating to sustainability.

5. Attract Financing

Sustainability reporting will provide a view for investors that insist on understanding the company's position on sustainability. Investment portfolios that are labeled "green" will require a mechanism to report back to investment analysts and the investment community.

These are a few examples of how sustainability can benefit your company. To learn more about sustainability you can download a white paper here or if you are an Australian-based company you can contact me jason.gates@oracle.com to learn more.