Sustainability reporting can be overwhelming, especially for companies who are new and unfamiliar to the process. Unlike a traditional financial report that looks into past performance, sustainability reports focus on accomplishments in the environmental, social, and governance (ESG) aspects and ideally present strategies and improvements planned for future implementation1 .
According to UNEP, sustainability reporting is an essential tool in identifying crucial ESG risks
and building up relationships with all stakeholders2 . Companies that had recently wrote their first sustainability report found that it is also a great avenue to promote their advocacies and
sustainability practices3 . However, the preparation process is a laborious task.
The biggest challenge often comes during the data collection phase in the form of lack of cooperation within the reporting company. The absence of collective efforts and an unforeseen event, specifically the COVID-19 pandemic, have made communication between relevant departments nearly impossible3 for first-time companies. Also, it took time to prepare, organize, and validate some data as they are not normally published4.
Nonetheless, sustainability reporting had helped broaden the understanding of first-time companies on the uses and importance of such a reporting system as they examine and comprehend the data that support their performance3 . It also gave their stakeholders an opportunity to monitor their environmental and social impacts, which can be used as valuable basis in decision-making4 .
1”Sustainability reporting – a perspective from the private sector” by Laura Kreiling: https://www.yorksj.ac.uk/socialeconomy/library-and-resources/sustainability-reporting-/
2Frequently Asked Questions on Corporate Sustainability Reporting” by the United Nations Environment Programme: https://wedocs.unep.org/bitstream/handle/20.500.11822/26171/FAQ_Corporate_Sustainability.pdf?seque nce=1&isAllowed=y
3Apex Mining Corporation Incorporated