Tokyo, Buenos Aires, Shanghai, and Venice, to mention a few, have one thing in common – they are all at risk of sinking because of climate change. This is just one of the threats facing the globe today. Others, such as the fast clearance of forests and loss of biodiversity, are even scarier. The good news is that we are next to the button that can help provide relief – ESG sustainability reporting. Here is a demonstration of what sustainability reporting is and why it needs to start right away.
What is ESG Reporting?
Before looking at the urgency of adopting sustainability reporting, the first step is to understand what it is. ESG sustainability reporting, simply referred to as sustainability reporting, is a process with its roots back in 1990 when the UN Conference on Environment and Development (UNCED) was held in Rio de Janeiro, Brazil. According to UNCED and follow-up conferences, especially the World Summit on Sustainable Development (WSSD), sustainability reporting is the disclosure of information on the economic, environmental, and social impacts of a company.
It is a major method of helping corporates take responsibility and drive the long-term economic value. Therefore, it involves reviewing all the processes of a business, helping it to identify opportunities and challenges. Adopting sustainability reporting is like placing your business on a launching pad and firing it to success. Some unique benefits that come with ESG reporting include:
- Better long-term management and planning of a business.
- Support for business accountability objectives.
- Cutting down risks of governance failures.
- Building better relationships with stakeholders.
These benefits are only a tip of what you get to enjoy for adopting sustainability reporting. They are some of the reasons why you should not be left behind as others adopt ESG sustainability reporting. Here are other reasons why organizations have to adopt sustainability reporting right away.
Dangers Caused by Business Operations
One fact about running a business is that its processes come with different social, economic, and environmental impacts. Take the example of a manufacturing enterprise that deals with processing minerals. Whether its task involves harvesting the resources directly from the ground or using products from others as raw materials, the truth is that it will have some impact on nature.
Even for companies that do not directly deal with resources sourced from the earth, they can also have an impact on the planet through emissions and wastes. If they are engaged in malpractices, such as child labor, the effects on the society can be direr.
By adopting sustainability reporting, you will be able to appreciate the dangers that come with business activities. More importantly, you will be able to adopt strategies for mitigating them. Do not look at others expecting them to make the world a better place for you, be part of the process to improve it.
The Risks for Current and Future Generations
At the start of this post, we indicated that one of the dangers facing the society is the loss of biodiversity. According to the International Union for Conservation and Nature (IUCN), over one million plant and animal species are threatened with extinction. Think of it this way. The emissions, natural resources extraction, and pollution of ecosystems can easily make the animals you know, from lemurs to giraffes, extinct.
If you want your kids and future generations to enjoy their lives on earth, the time to act is now. Remember that even if you are far away from the jungle or open seas, it is still possible to make a positive impact through support for initiatives that work on conservation.
As you can see, sustainability is not just about your enterprise. Rather, it has everything to do with your business profits, operations, the communities, and the entire globe. This is why you need to adopt sustainability reporting, which highlights your efforts to make the world a better place. To make reporting simpler and more effective, consider working with an appropriate sustainability reporting software.