The theme “sustainability” is very recent for our society. The first world conference on the environment was only held in the 1970s, shortly after we received the first images of the Earth – coming from space, after the launch of the mission that took us to the moon -, and we came across what we were doing with she.
Eco 92 was the first time that we actually heard about “sustainable development”. Since then, we have evolved a lot in this respect, although not satisfactorily in its entirety. We discovered that this development involves other practices, such as economic, social and not just environmental – the famous triple bottom line.
People are more aware. They are growing more aware of how and at what cost companies produce. According to a study How to speak Z, 92% of Gen Z youth care about social and environmental causes. Among Millennials – Generation Y – this percentage is 87%.
Given this scenario, with the social, environmental and economic challenges faced by companies today, sustainability management must be a priority in business strategies in any segment. This means that it is not enough just to have initiatives in favor of causes, it is necessary to have sustainability in management, decisions and day-to-day attitudes.
This is where the Sustainability Report comes in. While originally seen as a way to build trust and enhance reputation, it is now truly a strategic tool used to support sustainable decision-making processes, drive organizational development, achieve better performance, engage stakeholders and attract investments.
But what is the Sustainability Report?
Briefly, the report is a document where companies gather information with the aim of measuring and disclosing all the environmental, economic and social impacts that their activities generate. It is the main tool that companies have to present their performance to society.
This report tends to be very favorable to organizations. In addition to contributing to improving the public's image of the brand, it is an important starting point for self-knowledge, helping the company to detect positive and negative points in its management. And it all starts with the development of the Materiality Matrix.
What is the Materiality Matrix?
Materiality is an accounting principle that was adapted by the sustainability area to identify non-financial aspects that are relevant to the company. It consists of the organization's knowledge process of the most relevant subjects for it according to the business strategy and the perception of impacts of the public with whom it relates: the stakeholders.
It is estimated that 80% of a company's market value results from intangible assets such as reputation, image, brand recognition, relationships, customer loyalty, innovation capacity, transparency and corporate governance, brands and patents and policies.
The objective of the materiality analysis is to identify which environmental, social and governance aspects protect and add value to the business. In addition to providing the basis for the reporting process, this study can be an important tool for prioritizing actions and integrating sustainability practices into the companies' strategy and management.
What are the most used indicators and guidelines?
A common question in the corporate environment is which indicator is most suitable for each company. In general, all reporting tools have the main purpose of transparently communicating the actions, commitments and goals adopted. The main difference between them is in the structure, considering that in each one there are rules guided by different organizations, such as: IIRC, GRI, CDP, SASB, ETHOS, IBASE.
Sustainability Report (RS) – Focused on publishing practices and actions related to the main impacts of the company, based on the pillars of the triple bottom line, environmental, social and economic. It also addresses issues that are a priority not only for the company, but also for its stakeholders.
Social Balance (BS) – The main objective is to communicate the practices of a company in the context of Social Responsibility, with a variable structure based on the themes adopted by the company.
Integrated Report (IR) – The main feature is the emphasis on integrating information in a concise way, with a very strategic and future-oriented focus.
- It improves the management of socio-environmental risks by the organization and by society;
- Allows better definition of strategies related to sustainability in the economic, social and environmental spheres;
- It improves dialogue between the organization and stakeholders, contributing to the generation of common solutions;
- Integrates organizational departments promoting strategic alignment;
- Provides greater transparency between the company, partners and society.
Even though the Sustainability Report is not a legal requirement, it is advisable that all companies, regardless of their size, issue it annually. This brings transparency to their activities, as well as underscores their commitment to their consumers and society.
In short, the Report is indeed an important communication and management tool!
To paraphrase Neil Armstrong, the Sustainability Report is a step for the company, but a giant leap for humanity.
