What is ESG reporting?
ESG stands for Environmental, Social, and Governance, and ESG reporting is defined as “the disclosure of environmental, social and corporate governance data. As with all disclosures, its purpose is to shed light on a company’s ESG activities while improving investor transparency and inspiring other organizations to do the same”.
ESG reports commonly cover each topic area (environmental, social and labor, and governance), and for each, include information on:
- Assessed risks
- Actual impacts
- Quantitative and qualitative assessment of the company’s ESG activities (for instance, any policies, programs or actions that you have implemented to improve your impacts).
There are many different ESG reporting frameworks in use, but the most common frameworks are the Global Reporting Initiative (GRI), the Task Force on Climate-related Financial Disclosures (TCFD), the Sustainability Accounting Standards Board (SASB), and the United Nations (U.N.) Sustainable Development Goals (SDGs).
Why is ESG reporting important?
Historically, ESG reporting has been voluntary. However new legislation will make comprehensive ESG reporting mandatory for larger companies.
For example, the EU Corporate Sustainability Reporting Directive (CSRD) will require companies to set targets and disclose progress across 10 topical areas (from biodiversity to marine impacts to climate change) — with data expected on 2024 impacts across multiple tiers of their value chain.
For facilities and manufacturers, this means that your brand partners may soon be requesting more data from you across a much wider range of sustainability topics.
How can I use Worldly data for ESG reporting?
The Higg Index tools, available on Worldly, can help your business collect value chain data to disclose impacts for ESG reporting.
- In qualità di marchio, utilizza il Facility Environmental Module (FEM) di Higg e il Facility Social and Labor Module (FSLM) per creare l'infrastruttura di coinvolgimento della catena di fornitura necessaria a identificare, monitorare e risolvere danni effettivi e potenziali, oltre a raccogliere i dati primari di produzione necessari per dimostrare i progressi verso gli obiettivi;
- In qualità di stabilimento, utilizza il Facility Environmental Module (FEM) per quantificare i tuoi impatti ambientali e mappare le tue pratiche per mitigare i rischi e ridurre gli impatti. Utilizza il Facility Social and Labor Module (FSLM) per monitorare i tuoi impatti sociali, le politiche e le pratiche implementate per migliorare il benessere dei lavoratori.
- Whether you are a facility or brand, you can use the Higg MSI (Materials Sustainability Index) and Higg PM (Product Module) to measure the footprint of your products and analyze where the environmental hotspots are across your product’s lifecycle.
- Infine, il Higg Brand and Retail Module (BRM) offre una guida ai contenuti specifica per il settore per supportare le aziende nelle loro divulgazioni e può essere utilizzato come lista di controllo per la preparazione a regolamenti come la CSRD.
In sintesi, Worldly ti aiuta a raccogliere i dati necessari come input per determinare gli argomenti di sostenibilità rilevanti, definire obiettivi e target per il miglioramento dell’impatto e riportare i tuoi progressi nelle aree Ambientale e Sociale dell’ESG.
Le funzionalità della piattaforma Worldly non sono progettate per la redazione di report o come strumento di garanzia della conformità a regolamenti specifici.