No doubt, organizations intend to showcase how seriously management takes environmental and social justice. But just as many are ensnared by overcommitments, veering into areas unrelated to the business. This kitchen-sink approach obfuscates good work, particularly when shortcomings in those unrelated areas distract from positive externalities and can ultimately alienate those populations.
As such, sustainability reports should feature data that connect the company’s mission and raison d'être with its efforts to positively impact our world. Deadlines for global ESG disclosure regulations, including the EU’s Corporate Sustainability Reporting Directive and California’s Senate Bills 253 and 261, are not so distant, and the many data disclosures they mandate will reveal how well organizations keep their promises. Publicly disclosed commitments should thus reflect tangible action and financial and operational realities.
Candor and specificity nurture engagement
Sustainability journeys will be bumpy. The paradigm shift rippling across the private sector bodes well for clean energy, job quality, corporate transparency and pay equity movements, but companies will encounter unforeseen challenges and setbacks. Sensitive to corporate prevarication, scrutinous Gen Z and Millennial stakeholders want honesty. Candor in sustainability reporting of challenges and shortcomings—alongside the promotion of measurable successes—will prove engaging.
Importantly, such forthright discussions of sustainability-related challenges and roadblocks should note how management is trying to improve. Flawless environmental and community stewardship is not yet realistic for every enterprise. However, highlighting stakeholder conversations, employee outreach, internal audits, engagement of third-party advisors or other tactics will keep the tone positive and focus forward-looking.
Accessibility and communication channels matter
Every successive generation after millennials will be increasingly online and interconnected. Regardless of companies’ degree of exposure to end consumers and investors, companies can no longer afford to neglect social media platforms as legitimate channel for sustainability-related stakeholder engagement. Using the platforms, channels and formats these groups prefer—interactive social media content, mobile-optimized landing pages, succinct data visualizations—will improve the chances that sustainability reporting reaches important stakeholders.