How to Get Started With Sustainability and ESG Reporting

For companies just getting started with sustainability and environmental, social, and governance (ESG) reporting, the field can feel overwhelming. So many different frameworks and deadlines to keep track of! No unified standard! So, where should you begin? In this article, we’ll give you our top tips on how to get started with sustainability and ESG reporting.

Decide Which Framework To Use

There are a lot of ESG and sustainability reporting frameworks to choose from. In order to choose which one(s) you will use, you need to be very clear about the purpose of your reporting. For example, ask yourself which key stakeholders you are trying to engage with. Employees? Investors? Customers? Other stakeholder groups?

Next, ask yourself what the goal of your reporting is. Are you reporting to meet investor or legislative requirements? Do you want to build brand awareness and reputation among customers? Do you want to share stories about your commitment to sustainability or celebrate the diversity of your employees to attract new talent? Answering these questions will help you choose which framework(s) to use. Keep in mind that, depending on your needs, you may not need to use a framework and publish a full report (yet – the future is showing more and more mandated reporting). Social media or pages on your website may be enough of a platform for you to share your sustainability efforts for now, especially if your main audience is customers rather than investors.

See below for a handy list of sustainability and ESG reporting frameworks.

• B Impact Assessment
• Carbon Disclosure Project (CDP)
• Dow Jones Sustainability Indexes (DJSI)
• ENERGY STAR Portfolio Manager
• Global Real Estate Sustainability Benchmark (GRESB)
• Global Reporting Initiative (GRI)
• Integrated Reporting Framework
• International Finance Corporation (IFC) Performance Standards
• International Organization for Standardization (ISO)
• Science Based Targets initiative (SBTi)
• Sustainability Accounting Standards Board (SASB)
• Task Force on Climate-Related Financial Disclosures (TCFD)
• United Nations Global Compact (UNGC)
• United Nations Principles for Responsible Investments (PRI)
• United Nations Sustainable Development Goals

Be Prepared to be Transparent

The point of a sustainability report, whether it takes the form of a published report or a social media post, is to build trust with your stakeholders. Openness and transparency are key, and so is presenting an authentic, engaging story alongside your data. If you gloss over unfavorable data, fail to reveal important details, or otherwise try to seem perfect, you run the risk of being accused of greenwashing – or equally as bad, being seen as untrustworthy.

Include As Much Data As Possible

While you want to use storytelling to engage your audience(s), sustainability and ESG reporting must also be evidence-based. Now you might be thinking, “But my company is just getting started with sustainability/ESG reporting. We don’t have complete, comprehensive data yet (or know how to collect such data)!” Don’t worry! Many companies are just starting their journeys as well and are in the same boat as you. Here’s what to do:

• Openly address any missing data in your report and state the action you will take to fix the issue going forward (remember, transparency is key!).
• Remember that staying quiet on issues of sustainability and ESG can be increasingly damaging to your business. While having some data is necessary, you don’t need to have years of comprehensive data compiled before you can start reporting. Plant your flag in the field and produce a report which is open, honest, and transparent so that your stakeholders can see where you stand on these important issues. This baseline report can then be built on and improved year-on-year as you gather more data.
• If you’re stumped on how to begin gathering data for your report, see the “How WatchWire Can Help” section below.

Engage Your Stakeholders Throughout The Reporting Process

Your stakeholders are likely the main reason you are participating in sustainability/ESG reporting. Involve them in your reporting process as much as possible. For example, you might:

• Send out surveys asking stakeholders what initiatives they would like to see from you, so you know where to focus your data collection
• Ask your stakeholders if/how the product/service you provide has helped them lead more sustainable lifestyles
• Keep your stakeholders up to date on how your sustainability reporting efforts are progressing

Decide What Sustainability Metrics and Data You Will Collect

Not only your stakeholders, but what framework(s) you use, dictate the type of metrics and data you will collect. It is typical for companies to collect data under more than one framework.  Although there is some overlap between frameworks, your organization may still need to collect different types of data/metrics. While metrics and data come in universal measurements, the classification and importance of those measurements will often vary between frameworks. In addition, many frameworks require extra data to be reported, e.g., if the energy your company used was generated by renewable energy sources or fossil fuels.

How WatchWire Can Help

Many companies we meet with are still using spreadsheets or the like for their data collection and reporting efforts rather than a software or platform designed for sustainability reporting. Software like WatchWire makes the sustainability reporting process a lot easier. Here are some of the benefits/features of WatchWire:

• Your energy, sustainability, and emissions data is automatically collected and organized all in one place.
• WatchWire makes sustainability and ESG reporting much less labor-intensive and time-consuming. Time otherwise spent sorting data can be used for meeting goals.
• WatchWire provides you with actionable insights, not just more data to sort through.
• WatchWire can audit and verify the correctness of your energy and sustainability data before you begin reporting.
• WatchWire integrates with most sustainability and ESG reporting frameworks, allowing seamless reporting
• WatchWire’s powerful carbon accounting features calculate your carbon emissions using EPA Egrid and IEA emission factors.
• The platform can track both on-site generation of renewable power sources and off-site renewable energy credits (RECs). WatchWire can also provide a carbon offset view of power purchases from the grid vs. on-site renewables generated vs. off-site RECs.

Interested in learning more about WatchWire? Request a free demo or download the Watchwire Sustainability Brief.

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