Step by step to effective ESG reporting.
Implementing ESG and creating a sustainability report can be a time-consuming and technically demanding process, especially when setting up an appropriate strategy and during the first assessment. The basic and first step is to identify which aspects of sustainability are key in the company’s conditions, which you want to develop and pay attention to. Not only because the given area is important for your business, but also because it has the greatest importance in terms of environmental impacts and possible consequences. This process is referred to as double materiality assessment within ESG.
It is necessary to identify all relevant information from accounting and HR, recapitulate all significant activities, past projects and planned ones, and establish your own ESG implementation strategy in the conditions of a specific company and a specific business, so that attention, effort and investment, both time and financial, are directed to activities that make sense for the given business and support its competitiveness.
How to proceed effectively when creating a sustainability report:
Clear goals:
- Define clear goals for the report. What do you want to achieve and what are your ESG priorities? For example, improving environmental indicators or social impact.
- Data collection:
- Ensure the systematic collection of relevant data and their clear records for the future as well.
- Collaborate with departments or key employees and partners who have access to relevant information related to individual aspects of sustainability.
- Materiality:
- Identify key topics (materiality) for your business. What is most important? Which areas leave the most significant impact on the environment, employees or communities? Where are the biggest risks and challenges you face in these areas?
- Target group:
- Be aware of who will read the message. Tailor the content to their needs. Will your report be of interest to your partners from the ranks of large corporations, or are you targeting an end customer who is interested in the conditions under which the products you sell are produced and how your company works with the topic of sustainability? Do you want to attract qualified colleagues to your team and profile yourself as a high-quality, reliable and trendy employer? Show how you care about your employees.
- Clear processing:
- Divide the report into sections (eg environmental impact, social responsibility, governance and specific areas of focus for your business).
- Explain the individual topics and their meaning in the context of your company.
- Visualisation:
- Use charts, tables, and infographics to display data in an understandable way.
- Visual presentation helps to engage the reader.
- Comprehensible language:
- Write in simple and understandable language. Avoid technical terms unless necessary.
- The ESG regulatory framework is quite complicated and it can be an art to formulate your message in such a way that it is in line with regulatory and legislative requirements, while being understandable and attractive to readers from your target group. Entrust its preparation to the hands of experts and be inspired by those who already have experience with this issue.
- Engage stakeholders:
- Communicate with employees, investors and the public. Get their feedback and support.
- Highlight all relevant relationships and collaborations.
With a thorough understanding of ESG, we are prepared to help you customize this approach for your business, making ESG not only a regulatory compliance but also a valuable growth opportunity for building a sustainable and reputable brand. Our multidisciplinary ESG team, which includes experienced lawyers as well as economic, tax, and accounting specialists, is focused on developing corporate strategies for responsible, ethical, and sustainable business practices, while also implementing projects to achieve ESG goals. Please feel free to contact us!
