Many investors recognize that sustainability is a long-term goal that will define the business model and advance from limited practice among eco-friendly business leaders. In a report published by Accenture and the United Nations Global Compact (UNGC), 80% of the C-level executives interviewed believe sustainability is a way to gain competitive advantage in today’s global market. Reporting sustainability data has become a crucial part of achieving certifications and gaining investors.
Sustainability reporting in the corporate setting is an important factor to improve a company’s green initiatives and its relationship with investors and clients, inline with stakeholders’ demand for transparency and accountability. Ernst & Young upholds that sustainability reporting is “a best practice employed by companies worldwide,” as it can help improve practices already in place.
With clients, consumers and investors looking towards indices and performance reviews in choosing brands, business leaders are pushed to improve their standards of reporting. As a result, they generate positive interest for their company by creating a transparent report on their sustainability successes and shortcomings from the previous year, providing a window into how they conduct business, as well as offering insight into how they have improved and how seriously they are addressing environmental, social and governance (ESG) issues. These reports can also benefit a company internally. The analysis that goes into creating a proper sustainability report—one that highlights transparency, accountability and performance—helps determine which operations and practices need to be improved.
Companies need to ensure their ESG practices are up-to-date with investor and client standards. CDP’s Climate Change Questionnaire has transformed the way companies conduct their sustainability reports. The internationally-recognized scoring and database firm has been a reliable supporter of climate change action, thus creating a system it uses to determine an organization’s sustainability performance. Its questionnaire evaluates every aspect of an organization’s operations and procedures. In disclosing to CDP, organizations provide transparency to interested parties, and see for themselves where their business operations have room for improvement.
FirstCarbon Solutions (FCS) is a CDP Gold Consultancy Partner, Silver Software Partner and Global Scoring and Sustainability BPO Partner. We have scored 11,000+ CDP responses since 2011, and are experts in both the scoring methodology* and in building streamlined corporate sustainability systems using our state-of-the-art software and business process outsouring (BPO) services. To learn more about the importance of sustainability reporting, download our white paper, ‘Why Disclose to CDP?’.
*In accordance with CDP’s conflict of interest policy, FCS does not provide official scoring services for any of our CDP consulting clients.