How Can Your Company Be More Transparent About Sustainability?
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- Knowing-doing gap
- Compliance-competitive advantage gap
While more organisations are seeing the competitive advantage of being sustainable, they fail to see that they need to be compliant first. Compliance and competitiveness should be addressed separately for better company direction.
What many businesses do is mesh both compliance and competitiveness, making it hard for them to fight on both fronts. Instead of focusing on being competitive on specific aspects that align with their general goals, they divide their attention to try to be aggressive on areas that they need to comply with.
By understanding these gaps, you’ll be able to avoid the pitfalls that will prevent your company from seamlessly tackling corporate sustainability goals.
Most company executives believe collaboration is essential to achieving Sustainable development goals, but less than half confirmed to have a defined strategy to do this.
There’s no fixed and guaranteed way to accurately quantify and rate corporate sustainability. Numerous, complex factors can’t be generalized and fit into a singular model for assessing performance.
Still, investors look at the ESG ratings to help them get an idea of an organisation’s progress on corporate sustainability.
The environmental, social, and governance (ESG) metrics is designed to cover the following areas and relate them to financial performance:
- Environmental – looks at resource consumption, clean energy usage, waste management, etc.
- Social – includes employee diversity, internal relationship, human rights, corporate sustainability, etc.
- Governance – identifies shareholder rights, leadership, audits, shareholder rights, etc.
A high sustainability ranking is associated with good business decisions, commendable environmental practices, harmonious internal relationships, lower risk profile, increased market valuations, and better financial performance.
Focus on the ESG areas when strategizing how to improve corporate sustainability. Since ESG standards are recognized by organisations worldwide, it’s easier to use them when reporting progress on your sustainability efforts.
It’s easier for startups and new companies to incorporate transparency in corporate sustainability. On the other hand, established organisations need to exert more effort since existing processes may get affected.
But regardless of the size of the company, there’s no excuse for formulating a sound strategy on how the business can tackle sustainability challenges. Nearly 50% of companies have altered their existing models to accommodate sustainability opportunities.
When setting objectives, make sure they’re measurable so you’ll have something to show to consumers and stakeholders regarding your progress.
- Sustainability reports on recent company activities
- Regulatory returns, especially disclosures on carbon emissions
- Communication about sustainability goals between employees and stakeholders
- Reports that present financial values related to sustainability efforts
With SmartHead, it’s convenient to create a list of sustainable activities that can be tracked, ranked, and measured. You can attach relevant documents to serve as proof and make them accessible to the public for consumption.
By having an efficient and transparent communication system for showcasing sustainability efforts, stakeholders will feel assured and trust the brand more. They’ll see that your company is demonstrating progress, complying with all legal requirements, and working sincerely toward Sustainable development goals through the published data.
To improve transparency in corporate sustainability, you need a highly organised and robust system that makes it easier for you to coordinate updates. SmartHead is the platform of choice of leading brands in promoting their sustainability efforts. It makes promoting, organizing, tracking, and assessing sustainability efforts convenient, effective, and impactful.
If you want to find out more about transforming your ESG journey
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