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There is a growing trend towards ESG reporting nowadays. After almost 20 years on the Bulgarian market, we now know what companies need in purely practical terms:
You have probably done much more challenging work.
While ESG has been widely talked about since relatively recently, in essence, it reflects processes and activities of which you are reasonably aware. The sustainability report covers indicators, quite a few of which you already monitor internally – such as energy costs or employee care and development. A good consultant not only knows the theory of things, but how to dig into your business so that the feeling of something new and incredibly complex happening is kept to a minimum.
You have probably done much more complicated things.
While ESG has been widely talked about since relatively recently, at its core, it reflects processes and activities of which you are reasonably aware. The sustainability report covers indicators, quite a few of which you already monitor internally – for example, energy costs or employee care and development. A good consultant does not only know things in theory, but how to get inside your business so that the feeling that you are doing something new and incredibly complicated is mitigated.
The report does not serve as an excuse!
Commenting on most of the topics is so set up as to almost put you in an apologetic position. You can achieve more than that – talk about things you do that bring you success. The mere fact that you are doing business, that it is successful and relevant on the market, that it provides desirable products and services, and creates new jobs, is reason enough to highlight that fact. Often, the readers of your report are not even aware of what your product or service journey is. Make it clear to them. Show them. Use the report to increase your audience's knowledge of your industry.
What are the key milestones in its development?
There are three key milestones – determining what will be reported, collecting data and getting it done.
Determining what will be reported: Not everything is to be reported, but information is provided on specific topics. A sustainability report includes a company's environmental impact, as well as social and corporate impact factors. But this does not mean reporting on all topics equally. Deciding which topics are essential is not easily done or prioritized. Do not fear giving up on many of the endless list of topics – what is important is to have a good rationale behind your decision.
Collecting data: The first time especially takes the most time. Data is part of the company's processes and comes in different forms. You may need it in kilos or tons and have it in monetary terms. Getting it "right" is particularly important before you start completing data templates because searching for errors later and going back to their sources is unpleasant and wastes a lot of your time.
Getting it done: We are talking about preparing and creating, not writing. Those who think of the report as writing are not getting the most out of the entire effort. We aspire to show trends and we just need the explanations for support. This stage is the final one and any delays during the work will slow down meeting the deadline. It is especially important not to get caught in the trap of editing the text by many people in your team because it will unnecessarily prolong the process. There are ways to leverage team dynamics, get it done on time and even succeed with the design.
The concept is particularly important.
It has already become clear that a report is not being "written". To that end, before we rush into creating it, we work hard on clarifying the concept of the final product and on aligning the expectations of everyone involved. This saves us disappointment with the final product or divergent feedback about it. We create the conditions to move forward in synergy rather than pulling in all directions. This makes it clear in time whether we are producing a bicycle, a car or an airplane.
What is a good report?
One that does not break away from the company's business strategy. This is achieved with thought and imagination. A more concise report is more compelling – it has been acted upon. A good report is one that can be used as a tool to show progress, identify gaps and set goals for the company. Or one that provides meaningful information for the business.
*The Corporate Sustainability Reporting Directive
Summary
A good report comes with experience. Let us be perfectly honest – rarely does a company's very first sustainability report turn out perfectly. And that is fine – the topics are such that they are subject to continuous improvement and refinement. Each subsequent one will get better because you will have the experience of the previous one – what to collect as data, how to organize processes, which topics to prioritize, where to focus your efforts. That is why a lot of companies are doing a dress rehearsal right now. Reporting for the largest and most publicly significant companies becomes mandatory in 2025, but it is a good idea to prepare for the entire journey with a preliminary report now, so that any deficiencies or difficulties can be addressed before the content is subject to audit.