When the curtains for the recent 6th Climate Change Conference of the Parties (COP26) in Glasgow came down, one thing was clear: we must act right away. Everyone has a role to play, but the duty of corporations is even more significant. This is because your company’s social, environmental, and governance sustainability impacts are more compared to individual persons.
The good thing is that adopting sustainability in your facility comes with loads of benefits. Keep reading as we highlight the main reasons you should lead from the front line to promote sustainability.
A Closer look at Sustainability
Before looking at the benefits to anticipate from focusing on sustainability, let’s give it a deeper focus. Sustainability is a concept with its roots back in 1992 when the UN held the first Conference of Environment and Development (UNCED). The concept is used to ensure that the current generations are using the resources to satisfy their needs without compromising the ability of the future generations also to enjoy them.
Now, it has become the bottom-line as impacts of actions such as poor waste management, excessive harvesting of biological diversity and war keep ravaging the globe.
Initially, companies considered sustainability as a part of their voluntary efforts, but things are now different. More regulatory authorities, standards organizations, and governments are demanding ESG sustainability reports. These are disclosures about companies’ impacts on sustainability and their efforts to make the world a better place. For example, Hong Kong Stock Exchange (HKEX) now demands ESG reports from all listed firms.
By the end of 2020, over 90% of S&P 500 brands were releasing their sustainability reports. The new trend is expected to become the norm, and it is better to get started right away. Although the focus on sustainability comes at a cost; the benefits will ultimately surpass it. So, let’s look at these advantages.
Benefits of Adopting Sustainability Reporting in Your Firm
Here are the main benefits to expect from ingraining sustainability in your operations:
- Better Understanding of the Companies Opportunities and Risks
When you focus on promoting sustainability through ESG reporting, the first step is a comprehensive analysis of the company’s processes to establish the key opportunities and risks. This might be the biggest stepping stone to help your company address issues standing on its way to success.
If your poor performance in the last few years has been caused by inefficient machines, the review will help to establish the problem.
- Enhanced Strategic Planning
The commitment to ESG sustainability reporting is like setting off to a new era for your enterprise. You are able to relook at the company from a holistic view so that all areas are set for growth.
Take the case of sustainability reporting as required by HKEX. In this case, your organization must rethink its place not just in the present but also in the future. Your planning for sustainability becomes an important pillar in defining the future that you want for the company.
- Compliance with Various Requirements for Operations
To operate your company in any jurisdiction, it is a must for it to comply with all the set regulations. Some of these include laws on emission rates, waste treatment, and labor laws.
Although they might be directed at the company from different pieces of legislation, you can achieve compliance by simply adopting sustainability. With proper ESG sustainability reporting, you will even be able to surpass what the law requires. This can be all that you need to achieve higher productivity and customer satisfaction.
These are only a few of the benefits that you should anticipate for running a sustainable organization.
Remember that to enjoy all the benefits of ESG sustainability reporting; you must follow the right procedure, starting with company assessment and ultimately publishing the ESG report.
To make the process even easier, you also need a good ESG reporting framework and sustainability reporting software. Visit Diginex.com today for the best programs and all the assistance you need on sustainability reporting.