The sustainability reporting landscape continues to change and grow, with many businesses looking at more innovative ways of communicating with and engaging their stakeholders. Online reporting is the latest trend, but what does it entail and how much value is there in it? asks Graham Sprigg…
Amidst the recent launch of the Global Reporting Initiative’s G4 reporting guidelines, the debate continues about what makes a ‘good’ sustainability report, from content through to format. Whilst web-based corporate communications are well established, there is still some hesitation when it comes to delivering sustainability reports online.
The value of offering stakeholders an alternative, and arguably less wasteful, way of accessing sustainability reports is now widely recognised, with many businesses supplementing their hard copy reports with PDF versions available to download online. Whilst this approach does offer some obvious benefits compared to print-only reports, such as reduced use of paper and the option to hyperlink to more information, it still allows limited interaction and flexibility.
Using online engagement and communications tools can help to overcome the limitations of hardcopy and PDF report delivery. Although the practice is still in its early stages, the approaches taken by early adopters range from building microsites to house information on specific initiatives to full multi-chapter reports with real-time updates on progress. Whichever route is chosen, it is clear that these tools have much to offer to meet the increasing demand for transparency from stakeholders.
The benefits of web-based reporting
By harnessing web functionality, online tools allow you to transform your report from a static snapshot in time into a living document. Building your report online means you can support your static information with up-to-date case studies and live newsfeeds, ensuring that it remains relevant throughout the year.
In the same way, data such as key performance indicators (KPIs) can be continuously updated, keeping key stakeholders informed about progress on specified targets throughout the year. A KPI dashboard will allow readers to easily see all data clearly at a glance. Information can be updated as often as desired, which is particularly useful for those businesses that are considering more frequent reporting. For example, Morgan Sindall Group’s first stand-alone sustainability report, delivered entirely online using StakeholderTALK™, allows for quarterly updates on KPIs to provide relevant and accurate information on their progress.
Online reporting will improve your ability to track traffic on specific sections of the report, providing you with insight into the areas of most interest to particular stakeholder groups. This in turn can help to inform the content for your next report. The ability to gather stakeholder comments by providing feedback options is also valuable, creating a clear feedback loop back into your company.
The flexibility of online tools means that readers can utilise DIY report builders to tailor information to their particular needs. Users can also benefit from easy navigation and language options. By making content more accessible, online sustainability reporting facilitates more effective engagement with stakeholders and makes the distribution of content, such as promotion through social media, much simpler and faster.
Another benefit of presenting your report online is that it can be tied into your wider stakeholder communications and engagement strategy. By having a dedicated microsite to house all your report and KPI information, case studies and newsfeeds, you have one place that your stakeholders can refer to, provide feedback on and gather intelligence from. World Business Council for Sustainable Development’s (WBCSD) Cement Sustainability Initiative used the StakeholderTALK™ online toolkit for its Progress Report on sustainability in the global cement industry. The microsite includes interactive graphs, content quizzes, stakeholder polls and feedback areas to create two-way dialogue with stakeholders.
Does it support your strategy?
Of course, while online reporting tools offer increased transparency and opportunities for engagement, they will do little to improve a poorly written report. If the report doesn’t offer any value to stakeholders or the business itself and isn’t centred on the material issues, online delivery will not help to make it any more relevant to its audience.
To be effective, these tools must form part of your sustainability strategy. Businesses striving to improve the way in which they communicate with and gather feedback from their stakeholders are best placed to benefit from online reporting.
So, will this latest practice take off? Although still in its infancy, the adoption of online sustainability reporting will no doubt continue, particularly amongst forward-looking companies seeking to build transparent, two-way dialogue with their key stakeholders. Whether this will supplement printed reports or replace them altogether remains to be seen, but it is clear that the benefits of web-based communication have much to offer to the practice of sustainability reporting.
Graham Sprigg is Director at IMS Consulting. IMS Consulting has delivered sustainability reports for leading companies, including Skanska AB, Morgan Sindall Group, Saint-Gobain and Jewson. As a CDP Accredited Provider, IMS Consulting’s engagement and communication platform, StakeholderTALK™, is used by British Land, the Green Construction Board and British Water.
