Question

Sustainablity Report:

How do companies disclose sustainability practices and metrics? What type of information should companies disclose?

Answer 1

Sustainability reporting is the mechanism used by organizations to analyze and report the impact of its business operations and activities on environment, society and economic climate. This tool is used to track the changes that the business’ operations are causing to the external environment. Sustainability practices and metrics are tracked with the help of this sustainability reporting.

Some of the metrics that are disclosed through sustainability reporting are:

• Carbon emissions
• Water consumption in business operations
• Waste generation
• Waste recycling
• Climate Disclosure reporting
• CSR initiatives taken for the betterment of society

The various advantages of sustainability reporting are:

• This is used as a tool to link the financial and non financial business performance
• Impact of business on external environment can be tracked and regulated
• External risks and opportunities can be estimated with the help of sustainability reporting
• Sustainability reporting helps in streamlining the business processes to increase their efficiency and cost effectiveness.