SUSTAINABILITY REPORTING
Introduction
WHY LESS IS
MORE
Despite the economic downturn – and consequential budget cuts – there are
many good reasons to report this year. Alyson Slater reveals how limited
resources can actually help – rather than hinder – your company’s next report
A
s the economic crisis deepens, board of directors issued a recent declara- ilar figures were released in late 2008 in a
observers are watching to see tion aimed at governments stating that “the report on ethical consumer spending by
whether companies will stick to root causes of the current economic crisis the Co-operative Bank. The report stated
their sustainability commitments or would have been moderated had company that the downturn would not halt the
whether these social and environmental directors’ properly exercised their due dili- growth in ethical consumerism, and that
programmes, including reporting, will be gence and reviewed long-term risks, despite the first tremors of the downturn
the first on the chopping block. including those related to companies’ being felt towards the end of last year, the
The Economist claimed recently that responsibilities regarding their environ- overall ethical market in the UK was up
sustainability departments and pro- mental, social, and economic impacts”. The 15% from the previous 12 months. Thus
grammes were not suffering any more than signatories believe that the lack of trans- companies that are socially and environ-
others in terms of cutbacks. So, has the parency in the existing system for corpo- mentally responsible can claim a major
business case for sustainability finally rate reporting has failed its stakeholders. competitive advantage, but they need to
emerged? The type of company that will And governments are responding. communicate their activities to consumers
weather this storm is one that has a focus Across Europe, in Canada, South Africa, or they will miss this opportunity.
on long-term strategy; maintains best prac- Like discerning consumers, ethical or
tice in corporate governance; and is at the socially responsible investors are also
cutting edge of integrated risk-manage-
ment practices – all hallmarks of what it
means to be committed to sustainability.
An early study into how companies are
coping with the financial crisis, by A.T.
‘
Governments recognise that
‘sticky investors’ and provide the third rea-
a revitalised economic
son to issue a sustainability report this year.
Providing investors with proof in the form
system will only be
of data and analysis that the company has
sustained if it accounts for
maintained or grown its commitment to
Kearney, showed that companies focused sustainability is the best way to do this.
on sustainability outperformed their peers
by 15%. Now is the time to ensure strong
communications to stakeholders about the
’
the full costs of all activity Employees may be the most important
reason to report this year. Keeping morale
and other places governments are recognis- high and maintaining an innovative work
link between sustainability and successful- ing that a revitalised and resilient economic environment are requisite for delivering
ly navigating the financial crisis. system will only be sustained if it accounts quality products and services and keeping
for the full costs and value of all activity. the business flourishing. Keeping lines of
Four good reasons This is the first good reason to report this communication open with employees,
The financial crisis is taking place in the year – stay one step ahead of regulation, showing how the business is affected by
context of other complicated global chal- and be prepared for some changes to the the crisis and how it is responding is cru-
lenges – environment and climate change, rules of the game. cial. Making good on previous sustainabili-
and social unrest and poverty. It is now The second good reason is to maintain a ty commitments and communicating this
understood that these economic, environ- strong customer base. A survey by The can help alleviate anxiety and let employ-
mental and social crises are interlinked. Greenwash Index found that four out of ees focus on what they do best.
The Global Reporting Initiative sets the five people in the US say they are still buy- Each company is likely to have several
standard for corporate reporting on eco- ing green products and services today even other valid reasons for reporting this year.
nomic, environmental, and social issues. Its in the midst of a recession. In the UK, sim- But reporting is a costly task. The remain-
4 October 2009 ❘ SB FutureProof
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