Sustainability reporting

Sustainability reporting presents the performance of companies with regard to ESG (Environment, Social and Governance) aspects and counts as a sustainability management tool.  

The companies concerned are required to disclose certain sustainability information in their sustainability reporting. The aim is to make the opportunities and risks relating to sustainability aspects comparable. In doing so, the standards help to have uniform criteria to better evaluate or track the reports. As the number of companies involved continues to grow, a number of standards have emerged to which companies can orient themselves. These include:

• Global Reporting Initiative Standard (GRI): is the most widely used set of rules. It is a comprehensive, global criteria of business, trade union, society and science and is suitable as a basis for a management system.
• UN Global Compact Standard (UNGC): includes 10 core values for corporate action, where the focus is on human rights, labor standards, environmental protection and anti-corruption.
• ISO 26000: defines the 6 industries where transparent and ethical behavior is tested:
• Human Rights, Labor Practices, Environment, Fair Business Practices, Consumer Protection, and Community Involvement and Development.  
• EMAS standard (Eco-Management and Audit Scheme): is a certifiable standard for environmental management systems and targets organizations that want to improve environmental performance.
• German Sustainability Code: provides a framework of 20 DNK criteria for sustainability reporting by taking into account the areas of strategy, environment and society.
  
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Why should sustainability reporting be carried out?

Sustainability reporting is important because it helps organizations measure and manage their environmental, social and economic performance. It also serves as a tool for organizations to track and improve their sustainability performance and demonstrate their commitment to sustainability. In addition, sustainability reporting provides stakeholders with information about the organization's performance and enables them to hold the organization accountable. Finally, sustainability reporting can help organizations identify areas for improvement and compare their performance with that of their peers.

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