For companies that are focused on ESG (environmental, social, governance) sustainability reporting, one of the most important things is the metrics. They help demonstrate that the report is accurate and stakeholders can use it to make the right decisions, whether for investment or buying targeted products.
With the right metrics, it is also easy for companies to evaluate their progress and track goals that demonstrate their operation efficiency and impacts. There are four main areas of sustainability that companies focus on: human, economic, social, and environmental, and each comes with its own metrics.
In this post, we will look at the environmental metrics that are worth looking at for your company.
The Main Benefits of Sustainability Reporting
The benefits that come from focusing on and correctly tracing sustainability efforts can be manifested in a different way, such as:
- Better investor confidence in your company: With correctly drawn ESG sustainability reports, investors are able to understand the companies of interest effectively. They can check the staff satisfaction, long-term goals, and financial performance in the long term to make a better prediction about where to invest.
- ESG sustainability reporting helps to reduce the risk of company failure: After adopting an appropriate ESG reporting program, the first step is a careful evaluation to identify the major risks and opportunities. Then, they create goals and strategies to achieve them while imagining ESG issues in the future. This is likely to result in better strategic planning and higher rates of success.
- Better stakeholder engagement: When creating ESG reports, companies are required to try and be specific about the targeted clients. If you are targeting investors, it means liaising with them to understand what they prefer. The enhanced communication helps to build better engagement, which translates to higher investor confidence and brand image.
Note that for your company to enjoy these benefits and others, you need to prepare the ESG sustainability report in line with the guiding principles of ESG reporting.
Make sure also to have appropriate sustainability reporting software for easier data gathering and report gathering. One option that works pretty well with most companies is Diginex. It is easy to use, integrate with other management systems and allows for automation.
Important Environmental Metrics for Your Company
From UNEP to World Bank, most organizations appear in agreement that every effort is needed to try and reduce the current environmental impacts on society.
Corporate organizations’ roles are more significant because of the large impacts on different spheres of the environment. Therefore, here are some of the most important metrics to target with your ESG sustainability reporting efforts:
1. Climate Change
The changing climate is a threat to all, from plants to animals that we know of today. Indeed, even the people are not spared, and companies are now putting more effort into trying and address this challenge that is threatening to get out of hand. So, you should also think of internal and external ways that can help address the problem. Then report about it to the targeted stakeholders.
2. Energy Consumption
The energy that companies use has a direct impact on greenhouse gases and, ultimately, climate change. To make a difference, one of your focuses on ESG sustainability reporting efforts should be the adoption of eco-friendly energy consumption strategies. For example, you might want to install solar panels to cut down fossil fuel use in your company. Remember to make the efforts more specific for stakeholders to understand the resultant goals and impacts.
3. Water Usage
Because of its prevalent and daily usage, water is a crucial metric for most companies. Here, your ESG sustainability reporting can target a number of things, such as cutting down water use, recycling, and promoting the generation of fresh sources. So, try to weigh what will have a greater impact on the targeted stakeholders. For example, you might want to work with government agencies to promote water treatment to increase access by more people or recycle water from your plant.
The environment is and will always remain an important component in ESG sustainability reporting. Therefore, you need to carefully review your company’s operations and set clear goals to help make the globe a better place for all. Remember to use the metrics about the environment and sustainability report to build a better image, drive sales and profits for your company.