Sustainability reporting is the practice of disclosing a company’s environmental, social and governance (ESG) performance and impact to stakeholders. Sustainability reporting aims to provide transparent and reliable information on a company’s sustainability practices and to demonstrate its commitment to sustainable development.
Sustainability reporting typically includes information on a company’s environmental impact, social and labor practices, human rights policies, corporate governance and other ESG factors. Sustainability reporting may take the form of standalone sustainability reports, integrated reports or other forms of ESG reporting.
The purpose of sustainability reporting is to provide stakeholders with a comprehensive and meaningful picture of a company’s sustainability performance and impact. Sustainability reporting is used by investors to evaluate a company’s risk exposure, reputation and long-term growth potential. It is also used by other stakeholders, such as customers, employees and regulators, to assess a company’s commitment to sustainability and ethical practices.
Many companies now engage in sustainability reporting as part of their broader sustainability and ESG reporting efforts. Sustainability reporting is becoming increasingly important as investors and other stakeholders demand greater transparency and accountability from companies. Many companies are now required by law or stock exchange regulations to disclose their sustainability performance, and many others choose to do so voluntarily as part of their sustainability and ESG reporting efforts.
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