Stakeholders and customers have been pressing companies to publicly report sustainability information either in annual financial reports to shareholders or in voluntary corporate performance reports. The worldwide growth of socially responsible investment funds, investment rating systems such as the Dow Jones Sustainability Index and investment policy disclosure requirements also have put financial pressures on companies to make these nonfinancial disclosures. Meanwhile, sustainability reporting can serve as a differentiator in competitive industries and foster investor confidence, trust and employee loyalty.
Sustainability reporting requires companies to gather information about processes and impacts that they may not have measured before. This new data, in addition to creating greater transparency about firm performance, can provide firms with knowledge necessary to reduce their use of natural resources, increase efficiency and improve their operational performance.
The benefits of reporting include:
Meeting the expectations of employees
Improved access to capital
Increased efficiency and waste reduction
paleBLUEdot sustainability reporting typically follows one of these three international standards: