Sustainability reporting steps that turn ideas into reality, cutting risks

An organization’s ability to successfully tell its sustainability story requires several key steps that make an idea a reality.

Organizations must apply the right mindset to sustainability reporting by focusing on how they integrate ESG and sustainability end-to-end across the entire organization’s operations.

In this way, results from a connected and integrated thinking organization are reported. We can group the required steps into three phases, namely:

evaluation phase, development phase, and operation phase. Each stage outlines the steps needed to make organizational sustainability reporting a reality.

The first is the appraisal phase where organizations assess their current situation. Includes a review of the organization’s strategy, business model, and current non-financial reporting maturity level.

At this stage, organizations analyze the risks and opportunities resulting from embedding sustainability in the organization for long-term strategic planning.

In this way, the organization can identify material sustainability issues that affect it in the short, medium and long term.

Next is the development phase where the organization updates its strategy based on the results of the last phase. Define strategic pillars and prepare sustainability goals statements with key performance targets.

This is also the stage at which the organization builds strategy across its entire process and value chain through changes in policies, procedures, and processes, including data.

Organizations also develop accountability frameworks at various company levels while building capacity, awareness and communication programs across the organization and with stakeholders.

Operationalization is the final phase that involves setting up reporting dashboards to monitor and manage risk based on the strategic goals defined in the strategy update.

At this stage, ensure continuous monitoring and performance evaluation to build trust with stakeholders.

The last step in this final phase is to report and disclose information that tells an integrated and connected story from strategy to performance.

In this way, sustainability reporting results from a sustainability-driven or purpose-led strategy and helps organizations avoid the risks of greenwashing, failure to meet stakeholder expectations, and non-compliance with regulatory requirements.

Akinyemi Awodumila is a partner at Deloitte East Africa. He is an author who writes and speaks extensively on corporate reporting topics.