Photograph: Raphael Schaller/Unsplash
Building sustainability into the business has become increasingly important for leading global organisations. Stakeholders want to know where the company is going and how it is meeting sustainable development targets and best practices. Customers want long lists of sustainability questions answered before they sign on the dotted line: they want to know what kind of company they’re building a relationship with from the outset.
The critical onset of climate change and crises has led to increased global pressure, and companies are now expected to pay attention or pay the price. A collaborative report called companies to action, stating that 99% of CEOs say sustainability issues are important to the future success of their businesses. The challenge, however, is how the business measures this sustainability.
It has to be a process that digs deep into the business foundations… Metrics vary depending on industry and corporate focus, but should hold sustainability at the heart of every engagement across customer, supplier, development, product and stakeholder.
What systems, reporting tools and factors have to be put in place to ensure that the business ticks the right sustainability boxes – boxes that mean something for the company and the planet?
Building sustainability foundations
The Global Reporting Initiative (GRI) has established itself as the leading standard in sustainability reporting management and in developing robust sustainability practices within businesses.
The platform provides insight into how organisations can impact the economy, the environment and society. It gives them tools to increase internal and external accountability and transparency. However, there remains a need to develop a global standard on sustainability reporting, one that is driven by the International Financial Reporting Standards (IFRS) Foundation.
The IFRS, a nonprofit accounting organisation, asked for input on these global standards in October 2020, following a statement released the previous month by organisations that include the World Economic Forum.
It has to be a process that digs deep into the business foundations… Metrics vary depending on industry and corporate focus, but should hold sustainability at the heart of every engagement across customer, supplier, development, product and stakeholder.
The hunt for a comprehensive sustainability reporting system has started, and leading organisations are stepping up and taking part.
However, this can’t be lip service participation in yet another box-ticking exercise that makes a brand look shiny in its reporting. It has to be a process that digs deep into the business foundations and develops the metrics against which it wants to be measured. These vary depending on industry and corporate focus but should hold sustainability at the heart of every engagement across customer, supplier, development, product and stakeholder.
It’s essential that organisations fully realise their sustainability standards and how these apply across (amongst other metrics) accounting, technology, communication, economic responsibility, social responsibility and the environment.
A realistic view
There are several ways the business can identify and prioritise the main elements of its sustainability strategy. One step is to find out the benchmarks for the business sector and the trends shaping the market. This phase should leverage established reporting standards and global best practices.
The next phase should involve engaging with the leadership team and hosting dedicated workshops that help leadership identify key sustainability targets. Then these findings should be woven together along with client, employee and market perceptions to create a complete picture.
The future of the planet isn’t going to be soothed by a ticked box. Only by real change and real effort can the very real challenges of climate change be mitigated.
This is the process that NTT DATA Italy started when it released its first Sustainability Report in September 2021. A mix of best practice industry and reporting standards, the report is a deep dive into the foundations of our sustainability standards and is designed to provide our stakeholders (customers, employees, suppliers, local communities and academia) with answers to pressing sustainability questions. The report unpacks exactly what our stakeholders would want to know about how we approach sustainability and define our own ethics and best practices within this arena.
The report has helped us refine our four primary areas of sustainability focus – governance and ethics, economic responsibility, social responsibility and environmental responsibility – and ensure that these are consistently managed against clear KPIs. We have ensured that specialised people focus on this reporting so that it’s legal and compliant and delivers what we want it to deliver: genuine sustainability goals set against the highest possible standards.
We believe that sustainability is critical to the future of any business, in any sector. It’s not an exercise in being compliant or environmentally aware; it’s an ethos, a way of thinking, that should influence the very culture of the business and be embedded into its legal and reporting frameworks. The future of the planet isn’t going to be soothed by a ticked box. Only by real change and real effort can the very real challenges of climate change be mitigated and addressed.
A sustainability report is just one step towards the ultimate business goal – changing the size of the corporate footprint on the planet. With the right sustainability reporting in place, the right information sharing, and a commitment to transparency, organisations can change the future.
