With a growing focus on sustainability by business stakeholders, from policymakers to investors and consumers, it appears we are fast getting into the era of sustainability reporting. Although some see it as a cost that they can forgo, the truth is that reporting is indeed a good thing because it is aimed at making the globe a better place.
This is why every business should be involved. If you are in the service industry, it is important to also engage in sustainability reporting for the following benefits:
A Better Brand on the Market
In the service industry, whether it is a hotel or banking business, there is nothing as important as having a positive brand. Although not a simple task for most companies, it is now possible to strengthen your brand fast and become a revered brand.
Using sustainability reporting can help demonstrate the company's efforts and, more importantly, the targets for the future. If you have partnered with communities in different parts of the world to help with conservation, make sure to use the efforts in your marketing and everyone will be impressed. Particularly, your customers will want to be associated with you more and even carry the message to others.
It Will Is Easier to Win New Investors
For investors, there is nothing as important as correctly predicting how their investment will perform. Sustainability reporting helps you to achieve this. The process of sustainability reporting starts with a comprehensive review of a company’s operations to identify challenges and opportunities.
If you select a good ESG reporting framework and clearly highlight the expected challenges and how you intend to address them, investors will be able to gauge the possible future performance of the company and decide to work with you.
You Will Not be Barred from Listing on the Stock Market
As your service company grows, the importance of ESG reporting becomes even more crucial. When you finally decide to list with a selected stock exchange, such as the Hong Kong Stock Exchange or London Stock Exchange, one of the requirements will be the annual sustainability reports. Indeed, it is not just the stock exchanges that are asking for emphasis on sustainability; most regulatory authorities are also calling for responsible operations from businesses.
Your Staff Will Be More Motivated
The whole idea of sustainability reporting is rooted in creating structures that redefine our commitment to the planet. These efforts have to start with your organization, and that means giving staff a closer focus. This is important because the policies you will be implementing on ESG reporting will be executed by your staff.
For example, if you want to cut energy costs through behavioral change; your staff must be involved so that they can always switch off the light, computers, and machines when not in use. Therefore, remunerating the workers well and addressing their welfare considerations can help to create a highly motivated team for your company. This might be all that you need for employees to work harder to achieve higher productivity.
In the service industry, there is so much that you can do to make the world a better place. From cutting down energy use to supporting courses for social justice, the world is looking up to you. Remember that every effort needs to be captured correctly and explained in the report so that stakeholders can make their decisions.
To achieve this accuracy, which is part of ESG sustainability reporting principles, you need to have good sustainability management software. One of the top options that you should try in your organization is Diginex.