When it comes to sustainability and business practices, a common question is ‘what does good look like?’ There's a multitude of factors to consider, and often these sway between intricate data analysis and telling a compelling story.
Let's begin by acknowledging the dual perspectives that underpin sustainability reporting. On the one hand, there's the precise lens required by regulators, investors, and ratings agencies. They demand meticulous data analysis that often requires large investments. On the other hand, there's a more nuanced art of communicating this data to the market and employees, which calls for storytelling. Think of it as colouring in the raw information that the data presents.
Those companies who’ve been able to differentiate themselves are masters at integrating both these pillars. They invest heavily, often employing dedicated teams, to present a narrative that is both compelling and easy to understand. At EY's Integrated Reporting Awards, the thing that top-ranking companies had in common was their collaboration with creative agencies, proving the point that distilling complex data sets requires a narrative flair.
The art of selecting metrics
While the UN's Sustainable Development Goals provide useful guidelines, aligning with the World Economic Forum Measuring Stakeholder Capitalism framework becomes equally important. It’s essential to narrow down to three or four primary principles or measurement mechanisms tailored to specific metrics. This approach not only provides more focus, but also ensures alignment with global benchmarks.
Companies constantly face the conundrum of how much to spend on producing these reports. Striking a balance is crucial. While one wants the reporting to be comprehensive, it's equally vital to manage costs effectively. Many are now revisiting their investment strategies, with a surge in the inclination to repurpose investments towards artificial intelligence.
A starting point
For many, the journey begins with Diversity, Equity, and Inclusion (DEI). However, as companies progress, they need to come to grips with the quantification of carbon emissions and the science-based targets associated with them. Initially, the focus might be on tangible factors like energy and emissions. However, soon, this expands to more intricate components like water consumption, carbon footprints across supply chains, and even travel habits.
Particularly relevant to developing countries, the measure of social impact becomes a focal point. It’s not just about the numbers but also about the real-world benefits to communities where sustainability can make a meaningful difference.
What’s startling is that while 60% of South African CEOs have thought about sustainability, they’re yet to act on it. Three out of every five CEOs lack a concrete plan. While global dialogues like the fast fashion debate rage in the UK, South Africa grapples with different concerns, like affordable options amidst the cost-of-living crisis.
A continuous dialogue
Historically, tangible changes in sustainability have emerged when regulations come into play. But governments worldwide, with their bureaucratic tape, can be slow to enact these. So, what's the tangible cost of carbon? When we assign a value to it, businesses will be more inclined to plan and pay for their footprints. The journey towards sustainable solutions may lie in revisiting First Nations principles and practices such as considering a comprehensive approach to projects, considering not only the technical aspects but also the social, cultural, and environmental implications and favouring sustainable practices that benefit both present and future generations.
In a business landscape that’s continually evolving, the onus is on us to strike the right chord between data-driven insights and impactful storytelling, ensuring that sustainability isn’t just a buzzword, but an actionable strategy with measurable outcomes.