Sustainability reporting is not just for the big boys

For some years now, larger companies have been churning out annual reports describing their corporate responsibility (CR) or sustainability record. While these reports have become more sophisticated, they try in many ways to please everyone and often please very few.

At the same time, there is a growing band of smaller companies which have embraced regular reporting as a means of driving process improvement. These companies will take different approaches to environmental management and working conditions, but they share a desire to improve their relationship with the environment, suppliers, local communities and employees. This work is partly driven by legislation, but is also a means of responding to questions from customers and saving money, for example through reduced waste disposal, energy and recruitment costs.

Why make progress or problems with sustainability public? Firstly, the report can be a mechanism for setting targets and driving the resulting process improvements – you cannot beat a public statement of intent to concentrate minds! The report can sit easily alongside an existing data and management system and should offer a full and frank picture, even where progress is not being made. Secondly, the company may well be getting enquiries from potential customers, investors and employees about its sustainability record. Thirdly, greater transparency is a facet of improved management, which in turn enhances the value of the company brand.

The rise of digital communication means that even small businesses can produce concise, engaging and up to date summaries of environmental and sustainability performance. While a printed summary will always be necessary, online reports can be much more flexible, visual and up to date. In addition, the work of those within the business can be brought to life, specific projects can be illustrated and targets updated.

The report need not emulate the thick tomes produced by larger companies. It should describe the nature of the business, associated policies and how the company is tackling its key ‘impacts’ such as waste, water, responsible sourcing, employee development or community involvement. The report may also be structured in line with external voluntary guidelines.

In the era of business transparency and scrutiny, those companies that are prepared to expose their management of environmental, ethical, social and community issues will undoubtedly enhance their bottom-line and their value.