Most businesses have their own reporting tools for financial data, sales, logistics and marketing. They are well-aware of the fundamental role that reporting plays in monitoring the different areas of business performance, and recognize the role of the process in a data-driven decision-making process. But what about sustainability reporting?
In the EU, the directive for sustainability reporting came into effect in 2018. According to the directive, large companies with "public interests" and at least 500 employees are required to produce sustainability reports. The directive outlines the necessary declaration that firms must make in relation to transparency, social and environmental responsibility. Shockingly, this directive currently only covers about 6000 companies in the EU. The question then remains, is it only large companies with "public interests" that can benefit from sustainability reporting?
One way to look at it is that sustainability reporting is just another formalia to throw some nice graphics on before sending around to various stakeholders to feel good about yourself. As you probably have figured out by now, this is not our stand on the question of sustainability reporting
Instead, sustainability reports is a perfect way to communicate the company's stand on current environmental and social issues to investors, employees and customers. It is a way to engage with stakeholders and show off innovations and ideas for a sustainable future, which if done correctly can be a completely new way of branding a company.
One way of using your sustainability reports is by introducing science-based climate goals to show how you are working to fight climate change. Such targets are not only helping to prevent the adverse effects of climate change, but are advantageous for companies in many ways: ambitious targets have proven to increase innovation, reduce regulatory uncertainty, strengthen investor confidence and credibility while improving profitability and competitiveness. Read more o how we work with goals and climate reporting!
A recent example which shows the progress of working with such goals is Swedish food-delivery company Favo. In January Favo set a goal together with Klimato to increase their portion of climate-friendly dishes sold to 50% in 2020. Just 3 months later, we could proudly present that Favo is on a good track to hit their climate goal: the proportion of climate-smart dishes below 0.5kg CO2e increased from 26.3% in January to over 40% in both February and March! The secret behind this achievement has been the new climate-friendly menu with a variety of plant-based alternatives – Try them out and see for yourself!