It’s widely acknowledged that there are six years left to reduce the worst effects of climate change. With that in mind, it’s never been more vital to measure and manage our impact on the world around us.
Enter ESG (environmental, social and governance) reporting. This framework encourages companies to become more environmentally and socially conscious, providing a way for businesses to consistently measure their progress over time. Essentially, by tracking your company's ESG performance, you can see where exactly the opportunities for improvement are.
Breaking Down What’s Included in ESG Reporting
ESG performance is generally reported against a backdrop of the UN Sustainable Development Goals – or SDGs. These goals were adopted by all UN member states in 2015 as a global plan to implement “peace and prosperity for people and the planet, now and into the future.”
Here’s a quick breakdown of what the three parts of ESG reporting cover:
Environmental - this measures things like energy efficiency, climate change, carbon emissions, biodiversity, air and water quality, deforestation and waste management.
Social - this part covers areas such as inclusivity, gender and racial diversity, employee engagement, customer satisfaction, data protection, charitable giving, human and employee rights and health and safety records.
Governance - this pillar focuses on metrics such as board diversity, accounting policies, training, ownership structure and ethical behaviour.
Why Report on Environmental, Social and Governance?
ESG reporting has a vast array of benefits to businesses and society as a whole:
It helps investors, consumers, and other stakeholders understand a company's impact on society and the environment. Not only that, it ensures companies understand and manage their own ESG risks and opportunities.
It allows companies to demonstrate their commitment to sustainability and responsible business practices. In turn, this can attract investors and other stakeholders who are considering ESG factors when making investment and purchasing decisions.
It creates more transparency and accountability throughout the business, helping to develop a more sustainable and responsible global economy.
Just like all good reporting, though, everything hinges on the quality of the data itself. Not sure where to start? No problem, we can guide you through the process.
What Are the Different Types of ESG Reporting?
Today, there are various different ESG Reporting Frameworks available. These include:
GRI (Global Reporting Initiative)
SASB (Sustainability Accounting Standards Board)
SECR (Streamlined Energy and Carbon Reporting)
WEF (World Economic Forum Stakeholder Capitalism Metrics)
Not sure which one is the right fit for you? We provide detailed insights into the differences between these frameworks. Get in touch.
What Are We Doing at Area?
At Area, we disclose our ESG performance against the WEF’s core stakeholder capitalism metrics. The WEF framework is based upon the 4 Ps - Principles of Governance, Planet, People and Prosperity.
In line with our ethos, we recognise the crucial role of sustainable reporting in achieving our goals. Therefore, we incorporate this globally recognised ESG criteria into our approach to ensure responsible and sustainable operations, fostering trust in our practices and reporting among stakeholders.
Transparency and integrity align with our values of building trust and doing the right thing wherever possible. As a B Corp certified organisation, we hold ourselves to the highest standards of social and environmental performance, accountability, and transparency.
Over the past year, our B Corp certification has become deeply ingrained in our organisational culture, providing a structured framework for communicating our ESG strategy, fostering innovation, and driving market-leading initiatives.
We invite you to download our full report to gain insights into our journey.
Ready to Learn More?
Contact us today for more information on how ESG reporting can benefit your business and help build a sustainable future.
