ESG reporting with a difference

This approach calls for focus over clutter. Instead of attempting to include every achievement and anecdote, concentrate on the areas where your organisation has made the most meaningful progress and established strategic priorities.

Highlighting these core issues conveys to stakeholders what truly matters to you and why, while also demonstrating how you’re addressing these areas. A 2020 PwC study revealed that 80% of investors find sustainability reports valuable only when they focus clearly on material issues, underscoring the importance of this approach.

More research in the Journal of Business Ethics has shown that concise reporting centred on a few strategic areas helps stakeholders align their own sustainability goals with your organisation’s. Reports that prioritise material impact foster engagement, earn trust, make information more memorable and align well with standards like the Global Reporting Initiative (GRI), which emphasises relevance and materiality.

Sustainability reporting isn’t just about celebrating achievements – it’s a record of how an organisation addresses its ESG risks and leverages opportunities.

Essential risks include physical risks from climate impacts, transitional risks involving necessary investments or adaptations (such as renewable energy) and reputational risks related to media or consumer perceptions of unsustainable decisions.

A robust sustainability report should include details on how the organisation is mitigating climate risks, perhaps through emissions reduction or a climate transition plan, and outline any adaptations undertaken to support long-term sustainability.

Beyond risks, a well-developed sustainability strategy often unlocks new opportunities. In sectors like sport, for example, the commercial impact of sustainability is becoming increasingly apparent. A report by Nielsen found that sports organisations with genuine sustainability commitments could see a 10% revenue increase over three to five years compared to their counterparts.

A sustainability report, therefore, becomes a powerful tool to showcase not only core business risks but also partnerships and alliances that support sustainability efforts.

While data is crucial for credibility, storytelling is what captivates readers and gives your report emotional weight. Focusing on the experiences and challenges of the people behind your sustainability efforts helps create a fuller picture.

Stories resonate because they allow audiences to connect personally with your organisation’s mission. Following the first principle of focusing on what truly matters, select a handful of meaningful stories and support them with data to create a balanced narrative.

Engaging specific audiences on sustainability can be challenging, particularly in industries where sustainability isn’t an obvious priority. But a well-crafted story can change this by finding touchpoints that make people care.

Not every story needs a classic narrative arc; a story could be about a single impactful action, an unexpected challenge, a unique partnership or an area of adversity. Transparency can also play a role – showing where things didn’t go as planned and how you intend to improve can increase trust and build rapport with stakeholders.

Even the most well-crafted report loses its impact if presented as a static, text-heavy PDF. Design should be considered from the outset to ensure your report is visually engaging.

Think about the tone you want to convey: is it bold, approachable or serious? Identify key data points or stories that require emphasis and consider how infographics, photography and layout can elevate them. A few striking infographics or high-quality photos can significantly enhance readability and engagement, helping your report make a lasting impression.

Above all, aim to create a genuine connection with your audience. Authenticity, specificity and strategic focus can inspire stakeholders and empower them to join you in driving sustainability forward.