Sustainability report

Definition

A sustainability report is a corporate report detailing the environmental, social, and economic impacts of an organization's operations. It aims to provide transparency and accountability in how a company manages its resources and responsibilities towards sustainable development.

5 Must Know Facts For Your Next Test

1. Sustainability reports often follow frameworks like the Global Reporting Initiative (GRI) Standards.
2. They include metrics on environmental performance such as carbon footprint, water usage, and waste management.
3. Social aspects covered might involve labor practices, community engagement, and human rights initiatives.
4. Economic impact sections often discuss financial performance in relation to sustainable practices.
5. Many companies integrate their sustainability report with their annual financial report to provide a holistic view of their performance.

Review Questions

• What are the main components typically included in a sustainability report?
• Which widely recognized framework is often used for creating sustainability reports?
• How can integrating sustainability reporting with financial reporting create business value?

Related terms

Triple Bottom Line: An accounting framework that includes social, environmental (or ecological), and economic dimensions.

Corporate Social Responsibility (CSR): A business model where companies incorporate social and environmental concerns into their operations and interactions with stakeholders.

Global Reporting Initiative (GRI): An international independent standards organization that helps businesses understand and communicate their impact on critical sustainability issues.