Sustainability reports: things are going to change from now on
Environment — di Valentina Neri
New guidelines, new objectives. The rules are changing for companies that use sustainability reports to explain what good they have done for the planet.
Sustainability reports: things are going to change from now on
New guidelines, new objectives. The rules are changing for companies that use sustainability reports to explain what good they have done for the planet.
It is a period full of new developments for those working in corporate social responsibility. In mid-October, the GRI (Global Reporting Initiative) published new guidelines for drawing up the sustainability report, the document through which a company maps out the social, environmental and economic impact it has had on the world around it. And, before all its stakeholders, it lists the milestones achieved as well as the failures.
What GRI is and how it works
Some may think these are technical matters for insiders, but things are very different. Until the end of 2016, the sustainability report is not a legal requirement. It becomes one only from 2017 onwards, with the entry into force of Directive 2014/95/EU. And not for everyone, but only for European public-interest companies or those with more than 500 employees, whose consolidated financial statements meet certain criteria established by law (the total assets on the balance sheet must exceed 20 million euros or, alternatively, the total net revenues from sales and services must exceed 40 million).
To date, there are no binding constraints indicating to companies how to address certain topics or whether they must use certain indicators and not others. The guidelines are purely voluntary. And those of GRI are by far the most renowned at a global level, also because they are the result of a process that began fifteen years ago.
How the sustainability report is changing
From 1 July 2018, the new GRI standards for the sustainability report will entirely replace the current guidelines (GRI G4 Guidelines). In practical terms, these are 36 guidelines to follow in order to produce transparent and accurate reporting on topics such as greenhouse gas emissions, water footprint, energy consumption, and policies adopted with regard to workers.
This new approach will allow GRI experts to update individual elements from time to time, without having to overhaul the entire system. Companies, in turn, will be able to follow these guidelines to publish a comprehensive sustainability report, but also to draw up detailed reports on specific aspects, based on the requests of their stakeholders.
Towards the sustainable development goals
The stated aim of the promoters is to provide companies with a common language for reporting so-called non-financial information. Valuable information for "making better decisions" and thereby contributing to the achievement of the United Nations sustainable development goals.
The SDGs, in short, must become a true landmark. The 17 goals established by the UN approximately one year ago are, after all, extremely ambitious: ending poverty and hunger, ensuring gender equality, reducing inequalities, promoting lasting and sustainable economic growth, and much more (the full list is here). One cannot expect heads of state and government alone to take care of them: companies too can – and must – play their part.