July 18, 2024

Cristie Havel

Smart Money

Guidance on Measuring and Reporting Sustainability Efforts

5 min read

Introduction

Reporting your sustainability efforts is a good way to improve them.

Guidance on Measuring and Reporting Sustainability Efforts

Introduction

Measuring and reporting sustainability efforts is a crucial part of building a company’s reputation, but it can be challenging to find the right balance between cost, time and effort.

In this guide we’ll help you understand what makes up an effective measurement system as well as how to develop your own metrics for measuring sustainability performance.

Why Measure, Monitor and Report Sustainability Efforts?

The purpose of measuring, monitoring and reporting is to help you understand what is working and what isn’t. It also helps you understand how to improve your sustainability efforts. The final goal of measurement, monitoring and reporting is to enable decision-makers at all levels in an organization to make better strategic decisions based on fact rather than opinion or assumption.

If done well, measuring, monitoring and reporting can help you understand how your sustainability efforts impact your business: what’s driving them; which ones are most effective; where they might need more attention or investment; if there are opportunities for innovation within existing processes (such as new technologies).

How Do You Choose the Right Indicators?

Choosing the right indicators to measure and report on can be a challenge. Fortunately, there are some simple guidelines that will help you make an informed decision.

First, choose a few key indicators that matter to your business. Then analyze the data you collect over time to see how well they’re working; if not, adjust accordingly. Next make sure that whatever metrics you use are easy-to-measure and easy-to-understand–you want to avoid overwhelming yourself with unnecessary complexity in this process! Thirdly: make sure that whatever metrics or KPIs (key performance indicators) are relevant for measuring sustainability efforts within your organization; after all, if they’re not meaningful then why bother tracking them at all?

What Information Should I Report and How Often Should I Report It?

When you report your sustainability efforts, it’s important to provide the right level of detail. If you’re reporting a single action or project, it may be sufficient to simply state that “we did this.” However, if your organization has multiple sustainability initiatives and they’re related in some way (e.g., all focus on reducing energy use), then it will be helpful for stakeholders to know how each initiative fits into the bigger picture.

You should also consider how often you need to report on these efforts: Some companies publish annual reports with detailed information about their progress toward sustainability goals; others make periodic announcements about new initiatives or achievements along their journey toward those goals; still others choose not to share any information outside of internal communications channels such as newsletters or intranets because they want employees working on these projects feel like they have autonomy over what gets published externally without being pressured into releasing information prematurely just so they can check off some boxes on someone else’s list!

Which Metrics and Indicators Are Used by Others in My Industry?

You might be wondering, “How can I measure my sustainability efforts if there is no standard metric? I’m not sure where to start.” This is an important question! Luckily for you, there are hundreds of metrics and indicators that have been developed by companies in your industry and region. You just have to find them.

You can start by looking at your competitors’ websites or annual reports, which often include information about sustainability performance and goals. For example, if one competitor has set a goal of reducing greenhouse gas emissions by 10{b863a6bd8bb7bf417a957882dff2e3099fc2d2367da3e445e0ec93769bd9401c} over three years while another has committed itself to cut its carbon footprint in half by 2025 (both ambitious goals), then you’ll know which company has done more work on this issue–and may have more expertise on how best to tackle it yourself!

How Can I Use These Metrics to Report on the Progress of My Company’s Sustainability Efforts?

  • Use the metrics to track progress. You can use these metrics to gauge the progress of your company’s sustainability efforts by looking at them over time, comparing them to other companies in similar industries and markets, and setting targets for improvement.
  • Focus on key metrics. When reporting on sustainability efforts and performance data, it’s important to focus on the most important indicators–those that matter most for your business and industry. These may include things like greenhouse gas emissions (GHG) or water usage as well as waste generation rates across different categories like packaging materials or toxic chemicals used in manufacturing processes.*

What Is the Impact of Reporting on My Company’s Reputation and Competitiveness?

Reporting on sustainability efforts can help you learn what is working and what needs improvement. It will also allow you to demonstrate leadership, build trust with customers and employees, and improve your company’s reputation.

Reporting your sustainability efforts is a good way to improve them.

Sustainability reporting is a way to share your learnings with others and improve your sustainability efforts. It’s also an opportunity for you to develop your reputation as a responsible corporate citizen and increase competitiveness in the market.

As part of our guidance on measuring, reporting, and improving sustainability performance, we’ve developed tools that can help you track progress toward achieving your goals. These include:

Conclusion

Reporting your sustainability efforts is a good way to improve them. Reporting can also help companies gain visibility and credibility as leaders in their industries by demonstrating that they are making progress toward achieving their goals. If you’re not sure where to start with reporting, it may be helpful for you to start by asking what other companies in your industry are doing–or even just looking at how large public companies report on their sustainability efforts.