The sustainability report has become an essential tool for companies that want to show their commitment to sustainability and social responsibility. This report, which addresses in detail the social, environmental and governance (ESG) impact of companies, is a report on corporate achievements, challenges and plans for the future.

When preparing a company’s sustainability report, it is necessary to conform to international standards such as the GRI environmental and sustainability indicators. These standards provide clear and transparent guidelines for measuring and disclosing social, environmental and governance impacts, enabling companies to report in a consistent and comparable manner.

Components of a sustainability report

A sustainability report should cover a number of key areas to assess the company’s environmental, social and governance performance. Below are the essential sections that should be included to provide a comprehensive and coherent view of the organisation’s sustainability efforts.

General company information

This information is intended to provide an overview of the organisation, its context and structure. It should include information such as the mission, vision, values and history of the company, as well as its positioning in the market. In addition, it should provide information on the organisational profile, including the hierarchical structure and the main actors responsible for sustainability decision-making. It is also essential to include the context of the organisation, addressing aspects such as the economic, social and environmental environment in which the company operates, and how these factors influence its operations and strategies. This section provides the basis for understanding the company’s relationship with its stakeholders and the impact its decisions have on the community and the environment.

Business model and business strategy

The sustainability report should describe how the company generates value, not only in economic terms, but also in social and environmental terms. This section should detail the organisation’s main lines of business and how they are adapted to the principles of sustainability. The business strategy in terms of sustainability should be addressed, explaining how the company has integrated sustainability into its business model. This section should also include the long-term objectives related to sustainability and how these are linked to the company’s overall vision.

Environmental performance

This information should focus on the environmental impact of the company by assessing how its activities affect the natural environment. This section should include key aspects such as the management of natural resources, the use of renewable energies, the reduction of greenhouse gas emissions and waste management. In addition, the company’s commitment to reducing its environmental footprint should be reflected, detailing the initiatives that have been implemented to minimise the negative impact. It is also important to include preventive actions and continuous improvement objectives in environmental terms, such as the adoption of new technologies, process optimisation and assessment of impacts on biodiversity.

Social performance

The company’s social performance refers to the impact of its activities on people, both inside and outside the organisation. This section will address key aspects such as diversity and inclusion, working conditions and employee well-being. Corporate social responsibility (CSR) should also be included, reflecting the initiatives the company undertakes to improve the quality of life of local communities and to foster an ethical and transparent relationship with its suppliers, customers and other stakeholders. In addition, policies on respect for human rights, equal opportunities and measures taken to promote a fair and equitable working environment should be explained.

Governance performance

Governance is another key component of the sustainability report, as it sets out how the company manages its activities and strategic decision-making. This section describes corporate governance practices, including business ethics, transparency in decision-making and risk management.

It should also include information on how the company ensures that its governance bodies act responsibly and in accordance with ESG principles. In addition, measures taken to comply with regulations, prevent corruption and ensure the active participation of shareholders in key decision-making need to be explained.

Sustainable goals and targets

This section is key to assessing the company’s commitment to long-term sustainability. It should include specific targets in relation to environmental, social and governance aspects. It is important that the objectives are measurable, achievable and meet international standards. This section should detail the key performance indicators (KPIs) used to measure progress and the timelines set to achieve the targets. In addition, it should explain how the company plans to improve its performance and achieve its objectives, including the action plans that will be implemented to achieve the proposed progress. The section should reflect the ongoing commitment to sustainability and how opportunities and challenges are managed as they arise.

Advantages and difficulties of preparing a sustainability report

Producing a sustainability report presents both advantages and difficulties for companies. On the one hand, this report offers the opportunity to improve transparency and trust with stakeholders, but on the other hand, it requires considerable effort in terms of resources and internal coordination.

H3: Advantages of producing a sustainability report

1. Improved transparency and trust: A well-prepared sustainability report helps to show the company’s commitment to social and environmental responsibility, which generates greater confidence among investors, customers and other stakeholders.
2. Strengthening corporate reputation: Public disclosure of the effort to be sustainable reinforces the company’s image and positions it as a benchmark in corporate responsibility.
3. Identifying areas for improvement: The reporting process allows companies to assess their performance and identify areas where they can improve: this facilitates strategic decision-making and the optimisation of sustainable practices.

Difficulties in preparing a sustainability report

1. Collecting relevant data: Obtaining the information needed for a sustainability report can be challenging, especially if adequate systems are not in place to collect and manage ESG data.
2. Complexity in measurement and presentation: Sustainability reporting needs to be clear, accurate and understandable, which implies rigorous measurement and presentation of the often complex results of business activities.
3. Resistance to change within the company: Producing a sustainability report requires cultural and organisational change, which may generate resistance among some employees or managers, especially if they do not understand the strategic value of the report.
4. Costs and resources required: Producing a sustainability report involves investments in human resources, time and technological tools to collect and analyse the necessary data, which can be an obstacle, especially for smaller companies.

The use of sustainability software is essential to efficiently manage ESG data, automate reporting and ensure accuracy and compliance. These platforms enable companies to collect, analyse and present information in a clear and transparent manner, and facilitate the integration of sustainability criteria into their operations and strategies. By using specialised tools, companies can optimise the sustainability reporting process, ensuring greater efficiency and reliability in reporting.

At Maska we want to help you transform your sustainability reporting into an opportunity for growth. Optimise the measurement of ESG criteria, improve your reputation and build your ESG differentiation. Don’t get left behind: reach out to your stakeholders!