Small but perfectly formed....sort of

The launch of the GRI G4 reporting guidelines has generated something of a second coming atmosphere...well, at least within the cloistered world of sustainability disclosure.  The reporting faithful, in the form of accountants, verifiers, consultants, publishers, event organisers, corporate CSOs and other pilgrims journeyed to Amsterdam to obtain their copies of the sacred text.  This major event has of course generated intense theological dialogue on the merits or otherwise of materiality assessments and performance indicators.  Its manna for reporting zealots everywhere.

While their corporate brethren agonise over data versus engagement, an increasing number of smaller companies are facing up to the challenge of sustainability, either because they get it, or their customers are asking them the hard questions.  Whatever their motivation, a rapidly growing band of such companies, some listed, some private, are getting to grips with CSR, CR, sustainability (let’s leave the terminology debate for now) and opening themselves up to scrutiny.  Unlike their corporate cousins however, many of these companies are not hide-bound by the pressure to keep up with the neighbours on the reporting front.  Mention GRI to them and you might get into a discussion about General Rules of Implementation or Gross Rental Income. 

Mention, the cost of waste or raw materials, the challenge of recruitment and retention, charitable donations or volunteering, intricate questionnaires from customers or the growing regulatory burden and you will get their attention.  Please don’t mention carbon.  Those that are addressing sustainability, are doing so under these banners and just getting on with it in their own way.  Given their relative lack of resources and expertise, smaller companies embracing sustainability principles are:

Speaking to their sector peers to learn and share ideas, either directly or through trade and industry bodies.

Maximising the use of government sponsored support and advice.

Motivating employees through personal and professional development opportunities.

Embracing technologies that can reduce time and increase effectiveness.

Recognising the direct link to the bottom line and the need to disclose information on performance to retain or win business.

Those companies that are reporting are responding to customer pressure or seeing the competitive advantages.  The reports vary in form and size and some pay homage to GRI (the sustainability reporting protocol as opposed to Group Repeatibility Indicator), but in the main, they are an honest reflection of what is going on inside the business, even if on a limited basis. 

While the case for international reporting guidelines has been well made, countering corporate greenwash, the model that has developed has still allowed larger companies to duck the big issues, to finesse outputs and to generate reams of reportage that is inherently dull.   So let the corporate sustainability teams and their coterie of assessors and consultants adopt G4 and move to integrated reporting.   Will it solve the transparency deficit?  Will it be a mechanism for effecting fundamental change to business models?   I am not sure.  All I can say is that if you want to see open, honest and engaging communications you could do a lot worse than take a look at what some smaller companies are doing and saying about sustainability.