Sustainability Report: A Step-by-Step Guide
Sustainability is at the center of today's business world and is strategically important for companies. In this context, reporting your sustainability performance accurately and transparently is a critical source of information for all your stakeholders.
ISO 14064 Standard and GRI Standard support a wide range of reporting processes, from greenhouse gas emissions to water footprints and economic sustainability data.
This guide details the critical steps of the sustainability reporting process and best practices in this area. We invite you to discover how the steps taken towards a sustainable future are reported.
Sustainability Reporting Process and Its Importance
The sustainability reporting process is a critical tool that measures how businesses adhere to their sustainability goals and commitments. This process transparently presents the environmental, social, and economic performance of the business to both internal and external stakeholders.
In this section, we will detail the importance and critical steps of the reporting process.
Reporting Compliant with ISO 14064 Standard
The ISO 14064 standard is an internationally accepted approach to the calculation, reporting, and verification of greenhouse gas emissions. Reporting in accordance with this standard offers the potential to be recognized and accepted both nationally and internationally.
Reporting Compliant with GRI Standard
The main objective of the GRI Standard is to support the dissemination of sustainable business practices by encouraging companies to report their environmental, social, and economic impacts openly.
GRI has established sustainability reporting standards to achieve this goal. These standards are called the GRI Standards and provide guidance to companies in measuring, tracking, and reporting their sustainability performance.
The GRI Standards cover a wide range of topics covering a variety of fields; these include environmental issues, human rights, business ethics, employee rights, and supply chain management. These standards aim to offer more transparency and trust to stakeholders by helping companies prepare their sustainability reports in a consistent and understandable way.
Reporting of Greenhouse Gas Emissions
Greenhouse gas emissions play a critical role in climate change. For businesses, accurate and transparent reporting of these emissions is key to creating a sustainable environmental profile.
Businesses can follow the steps below in reporting emissions:
Identifying Emission Sources: Identify all sources of greenhouse gas emissions from business activities.
Data collecting: Collect data from each emission source.
Calculating Emissions: Calculate total emissions based on the data collected.
Reporting: Report calculations and methodology transparently.
Economic Sustainability Data and Reporting
Economic sustainability ensures that the business remains profitable and competitive in the long run. Reporting this data provides critical information about the financial health of the business and its sustainability strategies.
Businesses can follow these steps to report economic sustainability data:
Financial Data Collection: Collecting data on all financial transactions of the business.
Analysis: Evaluate the economic condition of the business by analyzing financial data.
Sustainability Goals and Strategies: Set economic sustainability goals and create strategies.
Reporting: Report the data and analysis you collect transparently.
Water Footprint Calculation and Reporting
Organizations worldwide are adopting water footprint calculation to better understand the environmental and social impacts of water use.
Water footprint calculation and reporting play an important role not only in the protection of natural resources but also in the social responsibility commitments of organizations.
What is a Water Footprint?
A water footprint measures the use of freshwater resulting from consuming a product, service, or organization. This assessment is done from a broad perspective, covering the entire supply chain so that organizations can fully understand their water use and risks.
Water Footprint Calculation
The water footprint is calculated by dividing it into three main categories: blue, green, and gray.
Blue Water Footprint: This category refers to how much of the surface and groundwater is consumed. This water is used primarily in industrial processes and agricultural applications such as irrigation.
Green Water Footprint: This refers to water stored in the soil due to natural precipitation and used for plant growth.
Gray Water Footprint: This category indicates the amount of water required for cleaning the dirty water used during product production and released to nature.
The Importance of Water Footprint
An organization's accurate determination of its water footprint is a hallmark of its commitments and practices toward sustainable water resources. It also helps them identify and manage water risks throughout the supply chain.
ISO 14046 Compliant Reporting
Water footprint reporting is considered part of an organization's water management strategy.
The ISO 14046 standard aims to provide guidance for the sustainable management of water resources.
Implementation of this standard encourages the effective and efficient use of water while helping to conserve water resources. Identifying the water footprint of products or services can help companies assess their environmental impact and develop their sustainability strategies.
These reports provide internal and external stakeholders with transparent and comprehensive information about the organization's water use and sustainability commitments.
Life Cycle Assessment (LCA) Calculation and Reporting
What is LCA?
Environmental Life Cycle Assessment (LCA) is a method used to comprehensively analyze the environmental impacts of a product or service during its production, use, and waste stages.
LCA Calculation
The ISO 14040 standard defines the basic principles and stages of LCA and provides guidance in LCA applications. The purpose of this standard is to provide an appropriate approach to assessing the environmental impacts of products or services throughout their life cycle.
The basic stages of the ISO 14040 Standard are:
Goal and Scoping: The purpose and scope of the LCA analysis are defined. It is determined which product or service will be evaluated, which stages will be included, and which environmental impact categories will be evaluated.
Identification of Life Cycle Stages: The life cycle stages of the product or service are determined. This usually includes stages such as raw material extraction, production, distribution, use, and waste management.
Data collecting: Data on energy, material, water, and other resources used at each stage are collected. These data will be used for later analysis.
Calculation of Environmental Impacts: Using the collected data, the environmental impacts of the product or service throughout its life cycle are calculated. These impacts may include factors such as energy consumption, greenhouse gas emissions, and water use.
Impact Assessment: Calculated environmental impacts are evaluated under predetermined environmental impact categories. At this stage, different effects are compared.
Interpretation: Obtained results are interpreted. It is evaluated which phases or effects stand out and where improvements need to be made.
LCA calculation and reporting is an essential tool in product design, determining sustainability strategies, and making environmental management decisions. This process contributes to developing more sustainable products and services by reducing environmental impacts.
Economic Sustainability and Reporting Considerations
Sustainability is directly related to the protection of natural resources. However, the economic dimension of sustainability is also profoundly linked to environmental sustainability.
Economic sustainability refers to the long-term growth of businesses while at the same time protecting natural resources and fulfilling their environmental responsibilities. When applied correctly, it bridges economic sustainability, environmental protection, and financial success.
The Concept of Economic Sustainability
Economic sustainability means the ability of a business to conserve natural resources by minimizing its environmental footprint while continuing its economic activities. This concept includes energy and water efficiency, waste reduction, and limiting carbon emissions.
In the modern business world, consumers and stakeholders expect companies to not only focus on financial success but also fulfill their environmental and social responsibilities.
The economic sustainability of a business both increases its financial success and enables it to respond more effectively to its environmental responsibilities. This balanced approach can also increase the competitive advantage of the business.
Economic Indicators Featured in Reporting
During economic sustainability reporting, it is necessary to focus on some economic indicators, taking into account the environmental impacts:
Energy and Water Saving: This shows how efficiently the business uses energy and water. It also measures the economic return of energy and water conservation strategies.
Carbon Emissions: It gives information about the size of the business's carbon footprint and strategies to reduce this footprint. The economic cost of emissions and strategies for reducing this cost are also essential.
Waste Management: It provides critical information on how waste is reduced and managed. Waste management can help strike a balance between cost savings and environmental protection.
Total Revenue: It shows the overall financial performance of the business, but attention should be paid to how this income is affected by environmental sustainability practices.
Considering these indicators allows a more transparent assessment of the environmental and economic performance of the enterprise. While this reporting builds trust among stakeholders, it also helps businesses better see how they are pursuing sustainability. Because a sustainable business model indicates both financial success and environmental responsibility.
Finally…
Sustainability brings many advantages not only in the environment but also in the economic dimension. It is possible for businesses to both achieve financial success and protect natural resources by directly combining their economic performance with environmental sustainability practices. This balanced approach increases businesses' value with consumers and other stakeholders.
However, at the beginning of this journey, a correct guidance and support mechanism is needed. The Carbon Gate aspect in the sustainability reporting processes of businesses is here to ensure that they reach the correct information and use it effectively. To maximize the advantages of economic sustainability and reporting from Carbon Gate's expertise and experience, you can benefit.
Find out how to be more effective in your sustainability reporting process by contacting Carbon Gate! Request a demo now and step into a sustainable future!
