ESG Sustainability Reporting in Numbers: Why Your Company Should Not Be Left Behind!

Environmental, social and governance (ESG) sustainability reporting is a relatively new concept, but it has been adopted rather fast by organizations in almost all sectors. The broad acceptance can be attributed to two key things: surging demand from stakeholders and associated benefits. ESG sustainability reporting is a conscious process that helps companies to rediscover their potential and use the right strategies to achieve their goals. 

By the close of 2020, over 90% of companies on the S&P 500 had embraced ESG reporting. Now, more firms are joining and others are increasing budgetary allocation for ESG processes. The potential coming from ESG is amazing as companies get the opportunity to drive a genuine process in line with clearly set principles. It is about time to join this noble course for you too. In this post, we take a closer look at the main numbers on ESG sustainability reporting. We will also highlight what you need for ESG sustainability reporting. 

A Brief about ESG Sustainability Reporting 

If you are a new manager or investor, the best point to start is to understand what ESG is all about. This is a well-thought-out process where a company discloses its environmental, social, and governance impacts from its operations. The process is largely voluntary, but that status is changing fast as more regulatory bodies and statutory requirements ingrain it. For example, most stock exchanges, such as the London Stock Exchange (LSE) and Hong Kong Stock Exchange (HKEX), have already added ESG reporting as part of the requirements for listed companies.

Apart from being a process for creating a report about the sustainability efforts, ESG reporting is a new way for companies to review their operations, define the future they want, and go for it. The process starts with a comprehensive review of a company’s operations to identify all the bottlenecks and opportunities. Then, you craft clear strategies for sustainability and growth in line with ESG principles, such as materiality and accuracy. 

Important Numbers about ESG Sustainability Reporting 

Now that you know what ESG sustainability reporting is, the numbers associated with it are really amazing because more companies than initially expected are adopting it. For example, about 80% of the world’s largest companies are already giving ESG reports. Here are other facts that you should know and use to shape your company’s policies. 

• About 76% of consumers have indicated that they will avoid buying products from companies that do not focus on sustainability. 
• In the United States, about 27% of revenue for the largest firms comes from activities aligned with sustainability.
• 88% of customers are expected to be loyal to businesses that support environmental, social, and governance sustainability. 
• ESG strategies can help improve a company’s profits by as high as 60%.
• By 2025, Deloitte predicts that ESG-mandated resources could make up about 50% of professionally managed investments.

As you can see from the numbers, your company has huge potential if it adopts ESG sustainability reporting. More stakeholders will want to be associated with you when you adopt sustainability. So, use it as a pillar for your marketing efforts and the effects will be faster growth, more profits, and success.

To do ESG sustainability reporting correctly, you need to understand the process, especially in ensuring the data you present in the final report is correct and verifiable. This will help your stakeholders to separate your company from others that go for the easier route of greenwashing. To follow the right process and optimize benefits from sustainability, make sure to work with the best sustainability reporting software. You might also want to bring on board an expert for assistance. Visit Diginex.com for all the sustainability-related assistance you need.