To grow your business into a global multinational, stakeholders such as investors and customers are very important. They inject the funds you need for product development, marketing, and expansion. One of the best ways to convince people to invest in your company is by preparing accurate ESG sustainability reports.
The reports capture the companies’ efforts in driving sustainability and help investors easily identify and associate with them. They also capture companies’ focus in addressing the future challenges, which is important in giving investors the confidence they need when targeting long term investments.
Keep reading as we demonstrate how you can use sustainability reporting, ESG experts, and materiality assessment to understand investor demands.
Bring On Board an ESG Expert
When reporting on sustainability for the first time, it can feel like a very complex process. We have to agree that it is pretty challenging, but you can simplify the process by working with ESG experts. Indeed, this is why most top brands out there use consultants to create high-quality sustainability reports.
With an ESG expert, it becomes easy to conceptualize the entire process. More importantly, the experts are in direct touch with the market and can easily identify what stakeholders want. If you are in the hospitality and wildlife-related field, the interested investors might want more efforts to restore natural habitats. The consultant will also help you strengthen your company strategies for success.
Strictly Follow the Available Reporting Guidelines
One notable thing about ESG sustainability reporting is that it is pretty new. This can make following the reporting process and identifying the investors’ expectations challenging. To address this, you should identify and work with an appropriate sustainability reporting framework and an ESG consultant. Here are the main options:
- Global Reporting Initiative (GRI): This framework was created in 1997 and is one of the most used models by companies on the globe. It allows you to create accurate and verifiable reports. GRI works on most companies, no matter the size or industry.
- The Taskforce on Climate-related Financial Disclosures (TCFD): This framework was created in 2015 by the Financial Stability Board (FSB) to help companies and banks provide stakeholders with reliable information on their climate-related risks and opportunities.
The reporting framework not only makes it easy to disclose your sustainability risks but narrows down to what most investors want. For example, TCFD focuses on finances, which is the first item that investors look at when reviewing the targeted companies. Other frameworks of interest include the Carbon Disclosure Project (CDP), Climate Disclosure Standards Board (CDSB), and International Integrated Reporting Council (IIRC).
Focus on Materiality
There are so many things that you can report about your company, but an ESG consultant will tell you that investors are only interested in the ones that have the biggest impact. After reviewing the company’s operations, you should also carry out a comprehensive materiality assessment to determine the most preferred reporting topics. This is what potential investors will want to see.
For a company that deals with food processing, material topics might include minimizing carbon footprint, reducing waste at source, and increasing efficiency of the production system. Before you can conclude the topics to focus on, make sure to engage the targeted stakeholders to understand their preferences. You might also want to provide regular updates about the company’s sustainability efforts.
When preparing ESG sustainability reporting with investors as the primary stakeholder, it is important to be as precise as possible. Using the tips we have highlighted in this post, you are sure of making investors want to get closer and stick with your brand. In addition, you also require having the right ESG sustainability reporting software. Visit Diginex.com, the home to some of the best apps for sustainability reporting software and ESG consultant, for all the assistance you need.Â
