Globally, the pace of climate action is accelerating. More countries are enacting and embracing green mandates and tightening regulations. This pushes companies to reassess their operations and ensure their products meet evolving sustainability standards.
In this context, the value of a sustainability report gains traction. These reports serve as vital tools for companies to navigate the green landscape.
The conversations about the suitability report with industry stakeholders reveal new facts, that are sometimes eye-openers.
For instance, in the past few months, I have come across many interesting facts regarding the sustainability initiatives of large and mid-size organizations. Basis the companies’ sustainability initiatives and my observations, I am bracketing those into three key categories.
The three key categories:
Laid-back approach: These companies implemented sustainable practices early on but haven’t documented the impact, or claimed carbon credits, leaving potential value untapped.
The greenwashing dodger: Companies seeking easy shortcuts and using “greenwashing practices” as tightened regulations are sometimes a challenge.
Uninformed exporters: Many Indian MSMEs and SMBs, particularly exporters, are unaware of the changing global regulatory landscape, putting them at risk of being left behind.
Several survey reports have highlighted the above-mentioned reasons why Indian companies have missed out on crucial deals. Except for the top 1000 listed companies (by market capitalization), creating a sustainability or ESG report is not mandatory in the country. All the same, with increasing awareness, the time is right for companies to develop a sustainability report.
Let me list the 5 compelling benefits of creating a sustainability report.
1. Identify gaps and opportunities: A report acts as a mirror, reflecting your environmental, social, and governance (ESG) performance and helps set goals for future progress.
2. Future-proofing: Even if your company isn’t currently subject to ESG (Environmental, Social, and Governance) reporting regulations, an annual sustainability report makes future ESG reporting easier.
3. Carbon credits: By quantifying your environmental impact, you unlock the potential to claim valuable carbon credits, leading to financial benefits and compliance with some environmental regulations.
4. Transparency and trust: Openly communicating your sustainability effort fosters trust and strengthens relationships with stakeholders, including investors, customers, and employees.
5. Brand image and reputation: In today’s conscious consumer market, a strong sustainability report can significantly boost your brand image and attract environmentally conscious customers.
So, creating a sustainability report is no longer optional. It’s a strategic investment that unlocks numerous benefits, regardless of your company’s size or current regulatory obligations. This can secure a competitive edge for the companies and also unlock a multitude of benefits.