Advantages Of Sustainability Reporting

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2.1 Sustainability Reporting Sustainability reporting provides financial and nonfinancial information on key performance indicators pertaining to economic, governance, social, ethical, and environmental performance. Sustainability reporting is evolving from its initial focus primarily on environmental issues to corporate social activities and now disclosing information on all multiple bottom line economic, governance, social, ethical, and environmental dimensions of sustainability performance. Sustainability reporting reflects performance not only in long-term profitability, but also discloses information on the well being of the society, the planet, and people. Once sustainability disclosure was the province of a few unusually green or community-oriented…show more content…
Putting light on sustainability lets organizations manage their social and environmental impacts and improve efficiency during operations and administration of natural resources, and it remains a major aspect of shareholder, employee, and stakeholder relations. Sustainability reporting is going to prevail and will only be on the rise. Undertakings are rapidly seeking new ways to improve performance, protect reputation and win the trust of shareholders and stakeholders. The result of this is a focus on NFI disclosure. The advantages of reporting are not only pertained to the financial risks of a company but makes a much greater difference in the long run. Sustainability reporting can help in distinguishing amongst competitive industries and nurture confidence of investors, loyalty of employees and most importantly, trust. Analyzing a company’s management quality and efficiency, analysts generally examine it’s sustainability report during their assessment, where sustainable reporting also has the potential of providing firms with a better access to capital [2]. After reviewing of more than 7,000 sustainability reports of various companies from around the globe, researchers…show more content…
When a company delivers what an employee is looking forward from a company, loyalty towards the company increases and hence there is no loss of intellectual capital. Benefits of reporting includes improved access to capital. Corporate finance has also had a paradigm shift due to Sustainable reporting and it is easier to see provision of investments in those undertakings who are being socially responsible, therefore in companies which are reporting their sustainability have an added advantage. Recent research found that reporting firms ranked highly for sustainability have KZ Index scores that are 0.6 lower than the scores for low-sustainability companies. [7] A lower score signifies fewer capital constraints. Finally, benefits include increased efficiency and reduction in waste. A global survey of sustainability reporters conducted by BlackSun Plc in late 2015, shows that 88% of the reporters indicated that reporting helped make their organizations’ decision-making processes more efficient. [8] Sustainability reporting requires companies to gather information about processes and impacts that they may not have measured before. This new data, in addition to creating greater transparency about firm performance, can provide firms with knowledge necessary to reduce the use of natural resources, increase efficiency and improve their operational performance. In addition, sustainability reporting can prepare
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