What are the most effective ways to report ESG data?
Learn from the community’s knowledge. Experts are adding insights into this AI-powered collaborative article, and you could too.
This is a new type of article that we started with the help of AI, and experts are taking it forward by sharing their thoughts directly into each section.
If you’d like to contribute, request an invite by liking or reacting to this article. Learn more
— The LinkedIn Team
ESG data, or environmental, social and governance data, is becoming increasingly important for businesses that want to demonstrate their sustainability performance and impact to various stakeholders. However, reporting ESG data can be challenging, as there is no universal standard or framework for measuring and disclosing it. How can you report ESG data effectively and efficiently, without compromising on quality and credibility? Here are some tips to help you.
One way to report ESG data is to align it with global guidelines or principles that are widely recognized and accepted by investors, regulators, customers and other stakeholders. For example, you can use the Global Reporting Initiative (GRI) Standards, the Sustainability Accounting Standards Board (SASB) Standards, the Task Force on Climate-related Financial Disclosures (TCFD) Recommendations, or the United Nations Sustainable Development Goals (SDGs). These guidelines provide a common language and framework for reporting ESG data, and can help you address the material issues and risks that affect your business and stakeholders.
-
Vajk Barabas
Sustainability Reporting | 🌱 ESG | CSRD | EHS
Adopting widely recognized ESG reporting standards is not just a best practice; it's a strategic move. These frameworks provide a structured and universally understood language for conveying your ESG data. They not only enhance transparency but also signal a commitment to addressing material issues and risks. It's a win-win, boosting stakeholder confidence while helping businesses better manage their sustainability impacts. It's about aligning with global goals for a more responsible and sustainable future.
3
Another way to report ESG data is to choose relevant indicators that reflect your sustainability strategy, goals and performance. You can use quantitative or qualitative indicators, or a combination of both, depending on your data availability, reliability and comparability. You can also use indicators that are specific to your industry, sector or region, or that are aligned with your stakeholder expectations and interests. For example, you can use the ESG ratings or scores from third-party agencies, such as MSCI, Sustainalytics or Refinitiv, to benchmark your performance against your peers or the market.
-
Vajk Barabas
Sustainability Reporting | 🌱 ESG | CSRD | EHS
Customizing ESG data reporting to align with your strategy and stakeholders' interests is a smart approach. It's not just about checking boxes; it's about conveying the most relevant and impactful information. Using industry-specific or regional indicators, along with third-party benchmarks, allows for more accurate performance evaluation. It's about tailoring ESG reporting to serve your goals, enhance transparency, and ensure your sustainability efforts are both credible and aligned with what matters most to your business and its stakeholders. It's a dynamic, strategic choice in today's ESG landscape.
3
A third way to report ESG data is to integrate it with your financial reporting, rather than presenting it separately or as an add-on. This can help you show how your sustainability performance and impact are linked to your financial performance and value creation, and how you manage the trade-offs and synergies between them. You can also use integrated reporting frameworks, such as the International Integrated Reporting Council (IIRC) Framework or the World Business Council for Sustainable Development (WBCSD) Reporting Exchange, to guide you on how to report ESG data in an integrated way.
-
Vajk Barabas
Sustainability Reporting | 🌱 ESG | CSRD | EHS
Integrating ESG data into financial reporting is a strategic leap towards sustainability transparency. It's a bold move that highlights the interplay between sustainability and financial performance, offering a holistic view of value creation. Using integrated reporting frameworks not only streamlines the process but also underscores the intrinsic connection between sustainability and business success. It's about making ESG data an integral part of your business story, demonstrating that sustainability is not a side project but an essential driver of long-term prosperity. It's a significant step forward in aligning business practices with the evolving demands of the global economy.
3
A fourth way to report ESG data is to verify and assure your data, to ensure that it is accurate, consistent, complete and transparent. You can use internal or external verification and assurance processes, such as audits, reviews, certifications or validations, to check your data quality and reliability. You can also use external assurance providers, such as accountants, consultants or experts, to provide independent and objective opinions on your data validity and credibility. This can help you enhance your data integrity and accountability, and increase your stakeholder confidence and trust.
-
Vajk Barabas
Sustainability Reporting | 🌱 ESG | CSRD | EHS
Verifying and assuring ESG data is a critical step for transparency and trust. It's not just about compliance; it's about demonstrating a commitment to data accuracy and accountability. External assurance providers bring independent, objective scrutiny to your data, enhancing its reliability. This process doesn't just benefit stakeholders; it also ensures that businesses have a solid foundation for their sustainability efforts. It's about walking the talk and taking a proactive stance in building credibility and trust in the increasingly scrutinized world of ESG reporting.
3
A fifth way to report ESG data is to communicate your data effectively, to make it accessible, understandable and engaging for your target audience. You can use different formats, channels and platforms to report your data, such as reports, websites, dashboards, podcasts or videos. You can also use storytelling, visuals, infographics or case studies to illustrate your data, and highlight your achievements, challenges and opportunities. You can also use feedback mechanisms, such as surveys, polls or forums, to solicit your stakeholder views and opinions on your data, and improve your reporting over time.
-
Vajk Barabas
Sustainability Reporting | 🌱 ESG | CSRD | EHS
Effective communication of ESG data is the bridge between data and action. It's about making complex data accessible and engaging for your audience. Using a variety of formats and storytelling techniques not only clarifies your data but also humanizes it, fostering better understanding and connection. Seeking feedback from stakeholders is a key part of the process, ensuring your data reporting aligns with their expectations. It's a dynamic and ongoing journey toward transparency, accountability, and shared responsibility for a sustainable future. It's about creating a narrative that empowers stakeholders to be part of your sustainability story.
4
A sixth way to report ESG data is to innovate and improve your data, to keep up with the changing expectations and demands of your stakeholders and the market. You can use new technologies, such as artificial intelligence, blockchain or cloud computing, to collect, analyze and report your data more efficiently and effectively. You can also use new methodologies, such as impact measurement, valuation or scenario analysis, to report your data more comprehensively and meaningfully. You can also use best practices, benchmarks or standards, such as the Global Reporting Initiative (GRI) Best Practice Network or the Sustainability Reporting Standards Board (SRSB), to report your data more consistently and comparably.
-
Johan Arnø Kryger
Experienced change agent in ESG strategy: Setting industry standards for systemic Net-Positive impact
Through my work, I've learned that impactful sustainability requires quantifiable metrics; we cannot improve what we can't measure. Embracing product-specific emission data is pivotal, as it unveils the depth of sustainable practices within supply chains. This necessitates a harmonized reporting framework, such as the EU's PEF, to be accelerated by political will. Standardized reporting is not only about efficiency; it's a crucial step for meaningful industry transformation. Hence, I call for policy-driven support to establish a global language in sustainability reporting, optimizing resource usage and magnifying our collective environmental stewardship.
5
-
Lael Giebel, MBA, LEED AP, SACP
Director of Global Sustainability @ KnowBe4 | MBA, LEED AP | Award-Winning Author | Speaker | Women in Cleantech and Sustainability Board of Directors | Ocean Allies Board of Directors | Leadership Pinellas Class of 2023
I would strongly suggest creating an Inventory Management Plan, or IMP, where you document everything you did to document your data, how you got to those figures, which contacts in each of your sectors worked with, etc. This way you will not need to reinvent the wheel next year when it comes time report again next year. This also creates a standard by ensuring that you report the same way each year.
3