The capability of a company to positively affect social and environmental change has, over the years, turned out to be a massive thought for several businesses. Several factors, such as environmental, governance, and social factors, encapsulate a panoply of problems that covers everything ranging from company culture, employee compensation, the effect of climate, and sourcing standards.
Of course, we can blame bigger companies for excluding themselves from financial reporting, but these companies still note the immense influence that ESG has on the relation of investors, market behaviour, and financial achievement. In fact, a huge percentage of the Fortune Global 500 companies make use of a well-known framework in sustainability reporting. About 80% of the biggest companies in the world make use of the Global Reporting Initiative (GRI) standards. The Global Reporting Initiative standard provides openness to investors, clients, including other stakeholders.
While for several years, public companies have embraced the act of sustainability reporting; but historically, it has been restricted (to some extent) to smaller businesses that don’t have the necessary resources to invest in analysis and reporting initiatives.
Sustainability reports are often prepared by accountants. Peradventure, you reside in Malaysia, and you need to know more about sustainability reporting, or you wish to get one for your business, you can contact an Accounting firm in Malaysia. An accounting firm in Malaysia boasts of accountants with the relevant skills and expertise, and they are all capable of providing you with whatever you need regarding sustainability reporting.
Irrespective of how big the company is, the following are some reasons why sustainability reporting is important to every business.