Sustainability reporting covers an organisation’s economic, environmental, social and governance (ESG) impacts and how they are working to address them.
In addition to their annual financial reports many of Australia’s largest corporations now publish an annual sustainability report. Sustainability reporting covers an organisation’s economic, environmental, social and governance (ESG) impacts and how they are working to address them.
It provides a platform for organisations to engage with internal and external stakeholders and demonstrate their commitment to ongoing improvement.
Other benefits of ESG reporting include (GRI 2020):
- Supports vision and strategy
- Management systems
- Strength and weakness
- Employee Motivation
- Reputation and trust
- Attracting capital
- Stakeholder engagement
- Competitive advantage
The Global Reporting Initiative (GRI) Standards
The GRI standards have become the most widely adopted global standards for sustainability reporting (GRI 2020) with over 75% of the world’s largest corporations who currently report on their sustainability performance using the GRI standards (KPMG 2017).
GRI provides a standardised approach to ESG reporting which allows an organisation to benchmark ESG performance with respect to laws, norms, codes, performance standards and voluntary initiatives; demonstrate their commitment to sustainable development; and compare performance over time.
ESG PERFORMANCE USED FOR RISK EVALUATION
On the global level ESG performance is increasing in importance as investors look to incorporate sustainability into their risk evaluation processes. For example, in 2016 Morningstar, one of the largest global financial services firms, introduced their Sustainability Rating to make it easier for advisors and investors to directly compare the ESG performance of different companies across industries and peer groups. Their Sustainability Rating allows investors to now consider ESG risk when structuring their portfolio.
How Can HFM Support Your ESG Reporting using GRI?
As part of this partnership we are currently working with GDI Property Group (GDI) to assist them in the preparation of their inaugural sustainability report. GDI are an ASX listed property owner and fund manager who have properties in both listed and unlisted funds worth more than $1 billion dollars. With an average of 20 years hands-on property experience, GDI’s highly skilled executives, overseen by a well-credentialed and experienced Board, have amassed a reputation for delivering excellence in total annual returns to investors through a combination of income and growth.
Alex Sejournee, Lead Consultant, Building Improvement at HFM has recently completed training with ZOOiD in the GRI standards. We welcome the opportunity to discuss how we can assist you with your sustainability reporting data collation requirements.
The combination of HFM’s strengths in sustainability data collation and ZOOiD’s extensive experience with the GRI reporting standards means we can provide a comprehensive and accurate sustainability report.
- GRI 2020 – www.globalreporting.org
- KPMG. 2017. Survey of Corporate Responsibility Reporting
- Morningstar 2020 – www.morningstar.com.