SUSTAINABILITY REPORTING: COMMUNICATING PROGRESS EFFECTIVELY AND TRANSPARENTLY

Sustainability programs have become an expectation. Increasingly, customers, investors, and consumers are demanding and visibility around sustainability initiatives, often in the form of annual reports.

However, developing an appropriate and representative report is not always straightforward amid fluctuating expectations, trends, and attention spans. As such, many companies choose to follow existing frameworks to provide consistent and repeatable metrics, understand their progress, benchmark against peers, and communicate initiatives to stakeholders.

REPORTING FRAMEWORKS

Global Reporting Initiative (GRI): The first and Task Force on Climate- related Financial most widely accepted standards for sustainability Disclosures (TCFD): TCFD provides a framework reporting, the GRI framework involves identifying for reporting on climate change-related financial and reporting on material aspects (economic, social risk to provide consistent and complete information and environmental) for your company. to investors and stakeholders.

Of the world’s largest 250 As of June 2018, 286 companies have expressed companies, 93% report support for TCFD, representing $7.1 trillion in market on sustainability and 82% capitalization and $86.2 trillion in asset management. report to GRI standards.

CDP (formerly Carbon Disclosure Project): CDP United Nations Sustainability Development offers an established platform to report on carbon, Goals (UN SDGs): Internationally recognized and forestry, and water impact for your company, with agreed upon by nearly 200 countries, the SDGs a Supply Chain module to incorporate supplier outline ambitious goals to protect the environment, results. Encompassing governance, strategy, and eliminate poverty and inequality, and promote peace results, CDP grades disclosures from A to F. and prosperity across the globe. 87% of companies that disclose to CDP Climate Today, over 3,800 voluntary commitments to the SDGs Change have identified business opportunities are listed on the UN’s online partnership platform. and are taking action to address climate risks, worth $53 billion in savings. WHY REPORT?

INVESTORS REPUTATION BENCMARKING

Financiers are actively seeking to Increasingly, customers and Measuring and reporting on invest in companies that plan for consumers expect both transparency progress helps you stay competitive the future including environmental and sustainable practices from the and understand industry trends. and social sustainability. businesses they purchase from.

RISK MANAGEMENT STRATEGY OPPORTUNITIES

Environmental and social issues Reporting on your sustainability Identify ways to grow your present material financial risks initiatives brings together internal business or reduce cost through actively managing and reporting and external stakeholders to sustainability initiatives and on these topics helps ensure align sustainability goals with . for future growth. your business strategy.

NSF SERVICES

NSF’s sustainability professionals can help you at any stage of the reporting process, whether you are planning to disclose for the first time or are looking to enhance and verify your existing report. Our services include:

Getting STARTED: Improve for GROWTH: Evaluate SUCCESS:

>> Determine the reporting >> Define metrics, collect data, >> Benchmark against peers structure that aligns with and develop your report and industry leaders to your organizational goals >> Design a custom report to identify current gaps >> Conduct a materiality meet your company’s unique >> Identify improvement areas assessment and stakeholder needs and priorities and opportunities to exceed engagement to identify >> Identify ways to improve stakeholder expectations material reporting areas your report to guide strategy >> Validate your report to GRI >> Create a roadmap for future and action or CDP requirements reporting needs and identify >> Plan for continuous >> Verify data with third-party gaps in current initiatives improvement and enhanced assurance and programs initiatives and goal-setting

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