Most / all users of ESG reports are concerned about risk management and / or value creation. Many ESG reports I've read don't provide enough clear info to assess that. Stating "Implemented improvement tasks on 30 high-risk suppliers" or "Received 8 reports of grievances from suppliers" or that "83 projects completed for walkers, cyclists and horse riders" as part of the "KPIs" doesn't tell us if risks materially declined in the 30 suppliers, or what the 8 supplier grievances were about and if they were properly addressed, or if the 83 projects improved air and sound quality in those areas. (those are actual KPIs from reports). We can make ESG reports more useful if we focus on metrics that matter the most - i.e. on relevant outcomes.

First, accept that a single ESG report can't cater to all. Investors need data. Give them data. Employees want to know about the company culture. Share stories, create narratives. For regulators, it's about compliance. Show them the proof. Second, evolve with the times. ESG isn't static. Neither should our reporting be. New issues emerge. Stakeholder preferences change. Adapt. Grow. It's time we stop trying to fit a square peg in a round hole. ESG reporting needs a revamp. And it starts with us. Let's break the mold. Let's redefine ESG reporting. Because the future isn't one-size-fits-all. It's tailored. Customized. Personalized.

Engaging with stakeholders is crucial for effective ESG reporting. It involves regular interactions with a diverse group of stakeholders, including investors, customers, employees, and community members. These interactions help in understanding their varied concerns and expectations regarding environmental, social, and governance issues. This process not only provides valuable insights for shaping the company’s ESG strategy but also ensures that the reporting is relevant and responsive to stakeholder needs. Such engagement fosters transparency, builds trust, and ensures that the company’s ESG efforts are aligned with the interests of those it impacts and serves.

To address the diverse and evolving expectations of ESG report users, it's crucial to stay updated with current sustainability trends and standards. Utilizing a dynamic platform that can adapt to changing regulations and stakeholder demands ensures comprehensive reporting. Incorporating feedback mechanisms and engaging with stakeholders regularly helps tailor the reporting process to meet their specific needs and concerns, providing transparent, accurate, and actionable insights.

Identify the primary and secondary users of your ESG report and understand their information needs. For example, investors focus on ESG impacts on financial performance, while customers care about ethical sourcing. Use surveys, interviews, and focus groups to gather feedback and tailor your report content and format.

Follow ESG reporting standards relevant to your industry, sector, or region, such as GRI, SASB, or TCFD. These frameworks offer guidance on disclosing ESG policies, goals, indicators, and impacts consistently and comparably, ensuring best practices are met.

To excel in sustainability/ESG/non-financial reporting is critical to understand your company’s ambitions and the applicable reporting regulations. One example is the European Sustainability Reporting Standards (ESRS), expected to impact over 50'000 worldwide, which provide comprehensive guidelines for ESG disclosures. Also, the IFRS S1 and S2 standards, which align with TCFD recommendations and emphasize climate risk integration into strategic planning. Additional attention to listed companies that may need to comply with further reporting requirements. By adhering to these frameworks, organizations can effectively manage ESG risks, enhance transparency, consistency and stakeholder trust.

In my opinion, following relevant ESG standards is essential for consistency and comparability in reporting. Finnish companies like UPM and Fortum adhere to frameworks such as the GRI and TCFD, ensuring that their ESG disclosures align with global best practices. By using these standards, they provide transparent and comparable data on sustainability impacts, from carbon emissions to governance practices. This not only meets regulatory and investor expectations but also strengthens their credibility and commitment to sustainability in both local and international contexts.

Conducting materiality assessments is a key aspect of effective ESG reporting. This process involves regularly evaluating and identifying ESG issues that are of utmost significance to both the business and its stakeholders. By doing so, companies can pinpoint and focus on the areas that have the greatest impact and relevance. This prioritization ensures that resources and efforts are directed towards the most critical ESG aspects, enhancing the effectiveness of sustainability initiatives. Materiality assessments help in aligning business strategies with stakeholder expectations and in addressing the most pressing sustainability challenges in a targeted and strategic manner.

Its challenging at present to sort out which standards are most meaningful to your audience(s) - much depends on their geographic or sector attributes. However, following generally accepted and tested methodologies is always a good rule of thumb - and the standards mentioned are highly useful. The other critical element is what your suppliers are able to report on and into. Simplifying their work by ensuring alignment with accepted standards will encourage more timely and meaningful compliance by reducing the burden of reporting differently into multiple different systems. From a procurement standpoint, you can list several ratings or reporting standards that you deem acceptable -and note what level of compliance or scoring you will prefer.

Ensuring transparency in ESG reporting is about openly sharing both the successes and challenges in your sustainability endeavors. It means providing a balanced view of what has been achieved and where there is room for improvement. This transparency is vital in building trust with stakeholders, as it demonstrates honesty and commitment to continuous improvement. It involves clear communication about the progress made in various ESG areas, as well as candidly addressing areas that need more work. By being transparent, companies can foster stronger stakeholder relationships, enhance their credibility, and reinforce their commitment to genuine sustainability efforts.

Identifying material issues is a strategic process that requires careful consideration and a structured approach. By leveraging established ESG frameworks, engaging with stakeholders, benchmarking against industry peers, and staying informed about regulatory trends, companies can ensure their ESG reporting is both relevant and robust. Continuous improvement and third-party verification further enhance the reliability and credibility of the disclosures, making them a valuable tool for all stakeholders.

Balance materiality and comprehensiveness in your ESG reporting. Focus on the most relevant ESG issues for your business and stakeholders through a materiality assessment. Prioritize and detail material topics while offering an overview of other ESG aspects and activities.

Addressing the diverse and evolving expectations of ESG report users requires a strategic approach, notably by balancing materiality and comprehensiveness. Materiality involves prioritizing and delving into ESG issues crucial for business and stakeholders, ensuring a focused report. Simultaneously, comprehensiveness mandates covering the entire spectrum of ESG impacts and performance. Employing a materiality assessment aids in identifying and prioritizing key ESG topics for detailed reporting, while still offering an overview of other relevant aspects.

Focus on material issues that significantly impact your business and stakeholders while providing a comprehensive view of your ESG performance. This balance ensures that the report is both relevant and thorough, addressing the most critical aspects without overwhelming readers with unnecessary details.

When considering accountability, keep in mind your regulatory compliance requirements in respect to the applicable standards, such as GRI, SASB, or TCFD. This process enhances stakeholder and investor confidence and helps in meeting increasing expectations from both the regulators and the auditors.

Kommuniziere die Ergebnisse der Wesentlichkeitsanalyse klar und transparent, insbesondere in den jährlichen Nachhaltigkeitsberichten. Dies fördert das Vertrauen bei den Stakeholdern und zeigt, dass ihr Unternehmen die Anliegen zur Nachhaltigkeit ernst nimmt. Dies bedeutet, auch Risiken oder Nachteile offen zu legen, auch wenn es zunächst den Anschein hat, dass dies dem positiven Image schaden könnte. Das schafft jedoch langfristig ein stärkeres Vertrauen, als wenn man nur die positiven Aspekte kommuniziert und die anderen ausblendet.

Disclose both positive and negative ESG performance transparently. Provide clear explanations of your methodologies, data sources, and any challenges faced. This honesty builds trust and demonstrates your commitment to accountability and continuous improvement.

The fourth step is to be transparent and accountable in your ESG reporting. Transparency involves openly sharing both achievements and challenges, as well as strengths, weaknesses, opportunities, and risks related to your ESG goals and impacts. Accountability requires demonstrating how you measure, monitor, and manage your ESG performance, and how you respond to stakeholder feedback and expectations. Support your disclosures with quantitative and qualitative data, case studies, examples, and testimonials. This approach shows your progress and commitment to continuous improvement, fostering trust and credibility among stakeholders.

Customizing communication in ESG reporting involves tailoring both the content and the dissemination methods to suit the unique needs and preferences of various stakeholder groups. This means understanding what different stakeholders - such as investors, employees, customers, and community members - value and expect from your ESG reporting. It could involve creating targeted summaries for different audiences, using various media formats, or emphasizing particular aspects of the report that are most relevant to each group. By customizing the communication, companies ensure that their ESG reports are not only accessible but also meaningful and engaging to all their stakeholders.

To meet the diverse and evolving expectations of ESG report users, it is imperative to prioritize quality and credibility in ESG reporting. This involves guaranteeing accuracy, reliability, completeness, and timeliness of ESG data. Credibility is fortified through verification by independent third parties or stakeholders, utilizing data validation systems, internal/external audits, or assurance statements. By adhering to stringent quality and credibility standards, companies can build trust among stakeholders and contribute to the ongoing development and relevance of ESG reporting in the dynamically changing landscape of environmental, social, and governance considerations.

Use robust data collection and verification processes to ensure the accuracy and reliability of your ESG information. Third-party assurance or verification can enhance the credibility of your report, reassuring stakeholders of its integrity.

The fifth step is to ensure quality and credibility in your ESG reporting. Quality entails providing accurate, reliable, complete, and timely ESG data and information. Credibility involves having your ESG reporting verified, assured, or reviewed by an independent and qualified third party or stakeholder. Enhance the quality and credibility of your report through robust data collection and validation systems, internal and external audits, and assurance statements. These practices ensure that your ESG disclosures are trustworthy and meet high standards, reinforcing stakeholder confidence in your reporting.

ESG Reporting: Tailoring to Stakeholder Needs with Tech In ESG reporting, stakeholders often want info in specific formats. For example, Customer X may request data in an Excel file, while Customer Y prefers a PDF for almost identical information. 📊📁 Adapting manually? Inefficient and time-consuming. The key? Use technology to streamline this process. 🚀 With the right tools, you can quickly convert your ESG report to meet these varied demands, ensuring transparent and effective communication. It's not just what you report in ESG, but how flexibly and efficiently you cater to each stakeholder's preference. 🌟

To address the diverse and evolving expectations of ESG report users, prioritize effective communication. Employ clear and concise language, engaging design, and accessible formats. Utilize diverse mediums such as infographics, charts, videos, or interactive tools for visual and digestible presentation. Leverage online platforms, social media, newsletters, webinars, and events to disseminate ESG reports, fostering engagement and dialogue. This dynamic approach ensures that stakeholders, with varying preferences and expectations, can easily comprehend and interact with the ESG information, fostering transparency and accountability in the ever-evolving landscape of environmental, social, and governance reporting.

How you approach non-financial reporting is dependent on your expectations - ask yourself or your team 'what are you looking to get out of your report?' as this determines the entire narrative and content to include. For ESG / Sustainability / Impact / CSR, this is why Corporate Communications teams are vital to sustainability efforts as they have the skills to shape and deliver the narrative to answer this question and maximise ROI across annual reporting requirements.

Present your ESG report in a clear, concise, and accessible manner. Use visuals, infographics, and summaries to highlight key information. Ensure the report is available in multiple formats and languages, if necessary, to reach a broader audience.

To ensure your ESG report meets the needs of diverse stakeholders, it's essential to offer both customizable and comprehensive reporting. Start by covering fundamental areas relevant to all audiences but include detailed sections tailored to specific user interests. For example, investors may prioritize financial risk mitigation, while employees and customers might focus more on social and environmental initiatives. Utilize a flexible reporting structure that allows users to navigate to the sections most relevant to them quickly. Additionally, consider offering digital tools that enable stakeholders to filter data or download specific reports based on their unique priorities, ensuring a more personalized and practical user experience.

Stay updated on evolving ESG trends and stakeholder expectations to continuously improve your reporting. Engage with stakeholders regularly to gather feedback and address emerging concerns. Leverage digital platforms for wider dissemination and interactive engagement, ensuring your ESG report remains relevant and impactful.

It is more important to get started - with transparency about your level of expertise or evidence - than to wait until you have your methods perfectly dialed in. Start by focusing on spend data if you are not yet able to complete a full materiality analysis, use carefully selected estimated data. These approaches are acceptable as long as you are clear about what you are doing. And starting the journey will strengthen your internal systems and data demand processes so that you can improve over time. Most importantly - reporting is not as important as ACTION. Use your data collection to identify critical changes you can make to reduce impact and improve operational sustainability. That is what the exercise is all about.