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Sustainability reporting in Business
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[QUOTE="Yakub02, post: 306880, member: 94426"] Sustainability reporting Organisations tend to communicate their sustainability activities through sustainability reports. Many companies worldwide (over 3,000) issue annual reports on sustainability and corporate responsibility. These companies represent all sectors and industries across the globe. Sustainability reporting is largely voluntary although a few governments have introduced mandatory sustainability reporting. For example: French law requires the annual reports of companies to include information on their environmental and social performance. All state-owned companies in Sweden must present a sustainability report using Global Reporting Initiative (GRI) guidelines on a ‘comply or explain’ basis. Furthermore some stock exchanges have sustainability reporting as a listing requirement. One such stock exchange is the Johannesburg Stock Exchange in South Africa, which has been a leading light in this area. Greater transparency on sustainability and the consequent attention to sustainability issues is of benefit to both companies and their stakeholders. Experience has shown that the process of sustainability reporting can add value in a number of ways, including: increased efficiency; higher levels of employee retention; and lower cost of capital. A number of organisations have produced codes of practice and guidelines for companies to follow, but to date these are non-mandatory. This can lead to problems in comparability of the content of these reports, although having the information in the annual report is better than not disclosing at all. [/QUOTE]
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