At Sustainability AI, we understand that an ESG or Sustainability Report is more than just a document—it’s a pivotal tool for companies to showcase their environmental, social, and governance impacts. Such reporting enhances transparency, highlighting the challenges and prospects a company encounters, and serves as a crucial instrument in affirming the genuineness of a company’s sustainable efforts to critical stakeholders.
The significance of Sustainability Reports is increasingly recognised, driven by demands from investors and stakeholders for greater disclosure on companies’ sustainability practices and ESG strategies. This call for transparency is further reinforced by evolving legislative frameworks aimed at promoting non-financial disclosures:
- The EU Taxonomy Regulation (REGULATION (EU) 2020/852), effective from July 2020, sets a foundation for sustainable investment within the European Union.
- Drafts for the Corporate Sustainability Reporting Directive (CSRD) and the Directive on Corporate Sustainability Due Diligence (CSDD) are in preparation, alongside proposals for sustainable product regulations by the European Commission.
Companies are guided on how to report non-financial information through standards issued by the Global Reporting Initiative (GRI), an international body providing independent standards. GRI standards are instrumental for companies in reporting on various impacts, including climate change, environmental sustainability, human rights, and corporate governance. These standards, while currently non-mandatory and non-binding, are the basis for the proposed CSRD and the forthcoming mandatory European Sustainability Reporting Standards (ESRS), akin to IFRS for sustainability reporting. High-quality reporting through GRI standards empowers organisations to comprehend, articulate, and manage their contributions towards the United Nations Sustainable Development Goals (UN SDG).
Creating a Sustainability Report that effectively communicates a company’s comprehensive sustainability narrative can be daunting. It requires a nuanced balance of information across various domains, adherence to reporting methodologies, and strategic communication of pertinent ESG information and indicators. Sustainability AI leverages its expertise in science and AI to simplify this complex process, ensuring that your sustainability reporting not only meets but exceeds the evolving standards and expectations, enabling a holistic demonstration of your commitment to sustainability.
