Reporting

Increasingly, organizations are under an obligation to present and communicate their commitment to sustainable development to their stakeholders. to present and communicate their commitment to sustainable development to their stakeholders.

Normally, this communication is structured around the preparation of an annual sustainability report, a document that sets out in an orderly fashion the objectives, actions, resources and proposed improvements related to a company's social, environmental and governance issues.

Reports should include both positive and negative ESG impacts in order to demonstrate real and concrete progress in sustainability.

The main drivers for organizations to publish their sustainability reports are:

• Transparency and strengthening of relations with stakeholders: reports are a letter of introduction as they offer a multidisciplinary vision of organizations and provide information on their commitment to sustainability.
• Positioning before investors, who increasingly take into consideration the economic, environmental and social performance of organizations when deciding whether or not to invest in them.
• Legal compliance: organizations with more than 250 employees, among other criteria, are obliged to publish an annual sustainability report according to the new European Corporate Sustainability Reporting Directive (CSRD).
• Improvement of the image and reputation of the organizations, by knowing their commitment to sustainability.
• Identification of the risks and opportunities faced by organizations.

It is essential that organizations work conscientiously on the content of their reports, so that the information provided responds to the issues that really matter and concern stakeholders and that the data provided is reliable and complete. This requires the implementation of robust and effective systems for collecting and controlling information.