So, your organisation has asked you to write its first sustainability report. Welcome to the support group!
Kidding aside, drafting your first sustainability report can be an overwhelming task. There are stakeholders to consult, data to collect, frameworks to consider and deadlines to manage, often while everyone involved is still trying to keep up with their usual day-to-day responsibilities.
After writing a bunch of sustainability reports myself, I have seen the same challenges appear time and time again. Here are my key tips for navigating the sustainability reporting process, avoiding some common mistakes and, importantly, keeping your sanity along the way.
1. Underestimating the Time Required to Produce a Sustainability Report
One of the biggest sustainability reporting mistakes companies make when embarking on their first report is underestimating just how long the process can take.
Those who have produced an annual report before may be able to venture a fairly educated guess. However, even experienced reporting teams can be surprised by the number of moving parts involved in sustainability reporting.
A sustainability report is not simply a document that is written at the end of the year. The information, evidence and stories included in it are usually collected, reviewed and developed over a much longer period.
Most sustainability reporting processes reflect a cycle. This means they follow a process of planning, consulting, implementing, measuring, reporting, reflecting and then improving the plan for the following year. Once one reporting period ends, preparation for the next one begins.
In other words, sustainability reporting is not a one-off project. It is an ongoing process that should become more organised, accurate and useful with each reporting cycle.
Sustainability Reporting Tasks Happen Throughout the Year
There will be tasks related to sustainability reporting that occur across the year rather than only during the writing stage.
These activities may include:
- undertaking a materiality assessment, also known as scoping the priority topics for the next report
- consulting internal and external stakeholders
- conducting stakeholder surveys or interviews
- collecting case studies and examples of sustainability initiatives
- gathering environmental, social and governance data for disclosure
- reviewing progress against the organisation’s sustainability strategy
- checking the status of goals, commitments and targets
- drafting and reviewing report content
- obtaining internal approval
- completing third-party assurance
- designing and publishing the final report
Each of these activities requires time, input and coordination. It is therefore essential to scope the resources required to complete every element of the sustainability report successfully.
Leaving these tasks until the final weeks before publication can create missing information, rushed approvals and a great deal of avoidable stress.
Sustainability Reporting Involves More Than One Team
Many tasks associated with sustainability reporting will involve different groups from across the business.
These may include:
- the Board and executive leadership team
- business unit heads
- finance and risk teams
- human resources
- operations and procurement teams
- community partners
- key external stakeholders
- employees responsible for collecting data across the business
- designers, writers, consultants and assurance providers
You will need to notify these groups of their level of involvement, the input you require from them and the timing of their contribution.
Remember, sustainability reporting is unlikely to be their only responsibility. People will need enough notice to make themselves available around meetings, operational priorities and their normal day-to-day activities.
Clear instructions also matter. Asking someone to “provide the sustainability data” is rarely enough. They will need to know exactly what information is required, which reporting period applies, what evidence should be supplied and when the material must be submitted.
How Long Does a Sustainability Report Take?
Depending on:
- the size and complexity of your organisation
- the quality of your data management systems
- the proficiency and capacity of your sustainability team
- the availability of key internal and external stakeholders
- the number of business units, sites or reporting locations
- the level of consultation required
- whether third-party assurance is included
the bulk of the sustainability reporting process will generally take between four and six months.
For a first sustainability report, allowing additional time is often wise. New reporting teams may need to establish processes, clarify responsibilities and locate information that has never been collected in one place before.
The best way to avoid unnecessary pressure is to create a detailed reporting timeline at the beginning of the process. Include responsibilities, internal review periods, Board approval, design, assurance and a little breathing room for the inevitable delays.
2. Not Identifying Your Target Audience
Your target audience will play a large role in determining the content you choose to include in your sustainability report.
Writing for investors and analysts is very different from writing for employees, customers or local communities. Each audience may be interested in different issues and may expect information to be presented in a different way.
In recent years, there has been a noticeable shift from narrative-based, community-focused sustainability reporting towards more data-driven disclosure aimed at the investment community.
This change partly reflects the priorities of large, mostly listed companies seeking to improve data comparability, respond to analyst expectations and provide investors with clearer information about sustainability performance, risks and opportunities.
However, organisations starting their sustainability reporting journey still need to understand exactly who they want to inform about their sustainability activities.
Before writing the report, ask a simple question:
Who needs to read this, and what do they need to understand when they finish?
Understanding who will be reading your report will influence several important decisions.
Amount of Information
Does your audience prefer short, punchy information, or do they expect highly detailed, data-driven disclosure?
Do they want to see stories and case studies about your sustainability projects, or are they primarily interested in performance data, risks, targets and measurable outcomes?
Some readers may only want a concise summary of progress. Others may need detailed tables, methodologies and explanations that allow them to compare performance across different years.
The amount of information you include should reflect the needs of your readers rather than the amount of information your organisation happens to have available.
Tone and Language
Does your audience prefer straightforward, factual statements, or are they looking to be taken on a journey?
What level of sustainability knowledge does your target audience already have? Will they understand technical terms, or will those concepts need to be explained in plain language?
You should also consider:
- the literacy level of your audience
- whether technical terminology is necessary
- whether readers speak more than one language
- whether accessible or translated versions are required
- how much background information readers will need
A report written for sustainability professionals may use more technical language than a report intended for the broader community. Even then, clarity should always come first.
The goal is not to make the report sound complicated. It is to make the information useful and understandable for the people who matter to your organisation.
Design, Layout, Images and Graphics
Does your audience want graphics that simplify your sustainability activities and concepts?
Would icons help highlight important data? Are tables and charts the clearest way to present performance? What types of images will relate to your audience and help convey your message?
Good design can make complex information easier to understand. It can also help readers locate the information that matters most to them.
Depending on your audience, you may want to include:
- charts showing progress over time
- summary tables
- key performance indicators
- infographics
- project photographs
- stakeholder quotes
- short case studies
- progress icons
- visual explanations of complex topics
However, design should support the information rather than distract from it. A beautiful report with unclear data is still an unclear report.
Medium of Communication
Will your audience actually read a full document, or would they prefer an interactive online sustainability report?
Which online platforms are they most likely to use? Do they prefer consuming content on a desktop computer, tablet or mobile device?
Do all readers have access to the internet, or will some stakeholders need printed copies delivered to them?
A downloadable PDF may suit investors, clients and assurance providers. Employees may respond better to short internal updates, while community stakeholders may prefer accessible webpages, summaries or printed material.
In some cases, one reporting format will not suit every audience. Your organisation may need a detailed sustainability report supported by shorter summaries, presentations, webpages or social content.
By catering to your target audience, you will not only narrow down the scope and appearance of your report, but also ensure the entire exercise meets its core purpose: making sure the people who matter to your business understand the great work you are doing, the challenges you are addressing and the progress you still intend to make.
3. Having Poor Data Collection Processes
When it comes to sustainability data collection, one phrase immediately comes to mind: “rubbish in, rubbish out”.
If you do not want to invest time in setting up functional and accurate data systems, do not bother trying to write a credible sustainability report. You will understand exactly why once you go through your first assurance process.
That might sound blunt, but reliable sustainability reporting depends on reliable information.
If your data is incomplete, inconsistent or unsupported, it becomes difficult to report progress confidently. It may also create significant problems when someone asks where a figure came from, how it was calculated or whether it can be verified.
Good Systems Still Need People to Use Them
There is also no point in having great systems in place if your people:
- do not know how to use them
- default to manual processes because the approved system is too complicated
- are not strict about saving records
- use different calculation methods across departments
- store evidence in personal inboxes or folders
- do not understand why the information matters
Before disclosing sustainability data publicly, organisations need to build data collection processes and systems that allow employees to record accurate information consistently.
The system does not necessarily need to be expensive or complicated. It does need to be clear, repeatable and practical for the people who are expected to use it.
Employees should know:
- which information they are responsible for
- how frequently it must be collected
- where it should be recorded
- what supporting evidence must be retained
- who reviews and approves the information
- which calculation method should be followed
- how errors or missing information should be addressed
Without this clarity, even well-intentioned teams can create a reporting nightmare.
What an Ideal Sustainability Data Collection Process Looks Like
An ideal sustainability data collection process would look something like this:
- Source data is captured through a field sheet, invoice, meter reading or another approved record.
- Supporting evidence is saved in a central register or document-management system.
- Results are entered into the approved software platform or spreadsheet.
- Monthly, quarterly or annual totals are added to the sustainability report data tables.
- The responsible data owner reviews the results and checks them for accuracy.
- The auditor reviews the reported numbers, software or spreadsheet, storage location and original source data.
- Any questions or inconsistencies are resolved.
- The assurance process is completed and certification is provided. Success!
The important part is being able to follow the reported number all the way back to its original source.
For example, if your report includes annual electricity use, an auditor may want to see the final reported total, the calculation spreadsheet, the invoices or meter records used and evidence that the correct sites and reporting period were included.
If those records are scattered across multiple inboxes, folders and systems, the review process can become far more painful than it needs to be.
Set Up the Process Before Reporting Begins
Having this process established from the start will save your organisation, and your auditor, a considerable amount of time.
It will also prevent the migraines caused by trawling through a year’s worth of records to find the correct information shortly before publication.
Before the reporting period begins, consider:
- assigning an owner to every sustainability metric
- developing clear data-collection instructions
- setting regular submission deadlines
- creating a central evidence register
- documenting calculation methods and assumptions
- checking whether systems are practical for employees
- conducting internal reviews before assurance begins
- retaining records consistently from year to year
A little organisation at the beginning can prevent a great deal of panic at the end.
Make Your First Sustainability Report More Manageable
Writing your first sustainability report will involve a learning curve. You may discover missing data, underestimated timelines and stakeholders who require more guidance than expected.
That is normal.
The goal is not to produce a perfect report on your first attempt. It is to establish a credible reporting process that can become stronger, clearer and more efficient each year.
Give yourself enough time. Understand who you are writing for. Build data processes that people can actually follow.
Do those three things well, and your first sustainability report will be far easier to manage, for you, your organisation and whoever is asked to assure it.
Naturaliste Solutions supports organisations with sustainability reporting, materiality assessments, stakeholder engagement and sustainability data processes.
Get in touch with our team for practical support with your first sustainability report.
Frequently Asked Questions
How long does it take to write a sustainability report?
For many organisations, the main sustainability reporting process takes approximately four to six months. The timeline may be longer for first-time reporters, large organisations or businesses with complex data and stakeholder requirements.
What is the biggest mistake first-time sustainability report writers make?
Underestimating the time and coordination required is one of the most common mistakes. Data collection, stakeholder consultation, internal approvals, assurance and design can all add significant time to the process.
Who is the target audience for a sustainability report?
The audience may include investors, employees, customers, regulators, community members, suppliers and business partners. Organisations should identify their primary audience before deciding on the report’s content, language, detail and design.
Why is data collection important in sustainability reporting?
Reliable data supports credible and defensible reporting. Clear data processes also help organisations trace reported figures back to source evidence during internal review or external assurance.
What information should be collected for a sustainability report?
The information required will depend on the organisation’s material topics and reporting framework. It may include environmental data, workforce information, community outcomes, governance arrangements, targets, risks, opportunities and progress against the sustainability strategy.
