Sustainability report is voluntary in many countries.

However, KPMG states 93% of large multinational companies make this report.

Regulation, Stock Exchanges, and Investor pressure are the key drivers for making this report.

 

In 2016, The Singapore Exchange (SGX) introduced new listing rule on sustainability reporting for Companies.

 

The report must describe,

• Board statement
• Material environmental, social, and governance factors
• Policies, practices, and performance
• Sustainability reporting framework
• Targets

 

How good is your Sustainability Report

There are statutory requirement, Public Accountants’ guidelines, Audit committee advisory, Shareholders relations pressure, to make it a good quality report.

 

Accuracy – Information provided shall be sufficiently accurate and detailed for stakeholders to assess the organisation’s performance

 

Balance – covers both positive and negative aspects of performance

 

Clarity – understandable, easy, and economically accessible for shareholders

 

Completeness – covers materiality and its significance sufficiently for its stakeholders to assess the performance of the company during the period

 

Comparability – consistent format so as to analyze changes in performance over time and with other organizations.

 

Continuous Improvement – it should raise benchmarks from time to time

 

Materiality – covers all significant events, information that affect stakeholders’ decisions

 

Reliability – information collected, be verified, for clear sustainability accounting, and reporting policies,

 

Stakeholders’ inclusiveness

Timeliness – information is prepared in time for stakeholders to make informed decisions

 

Suresh Shah, Pathfinders Enterprise

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My thoughts in writing above, is influenced by a well written article