The world-altering events of the past few months with
COVID-19
and its social and economic impacts might make it tempting to deprioritize the
importance of sustainability reporting. Many companies have faced severe
challenges — being forced to lay off or furlough large numbers of employees,
adjusting to remote work operations, facing strained supply chains, and even
rethinking their entire 2020 strategy in the face of an uncertain economic
outlook.
Yet demonstrating resilience in the face of
COVID-19
and your other material environmental, social, and governance (ESG) issues will
be critical for reassuring investors, employees and other stakeholders that your
company remains future-proof. Reporting thoughtfully and appropriately during a
time of crisis is paramount. During this time of great disruption, you’ll need
to modify your approach to be successful.
Double down on the data
Data-driven storytelling is nothing new, though the uncertainty around COVID-19
has made backing up claims with hard facts more important than ever. In your
reporting, demonstrate leadership by embracing transparency and consistency —
backed by
data,
of course — to show how you have performed with poise during this crisis. This
means showing how your actions are supporting employees, customers and the
communities you operate
in.
When telling the story about how COVID-19 has impacted your business, don’t be
afraid to show the blemishes. No company is going to escape this crisis
unbruised, and showing how you managed to stay steadfast during it all will be
much appreciated by investors and others reading your report. These stories can
serve as proof points for how your investments in sustainability are helping
your better weather this storm. Backing your sustainability stories with solid
data adds depth and will better address the interests of the head and the heart
in your readers.
Consider simplification
Less is more. If there ever was a time to reevaluate your approach to reporting,
it’s now. As your organization looks to streamline and simplify operations
across the board, you should think about how you might
achieve
your sustainability communication goals in a more efficient manner. In lieu of a
traditional PDF report weighed down by human interest stories, consider a fresh
approach and embrace digital. By creating a dynamic online reporting
communication system, you can conveniently update the backend more than once a
year and it’s easily browsed by stakeholders.
Refocus your audience
Let’s be real — your investors are the only ones who are actually reading your
sustainability report. While you may be tempted to continue to cater to all your
potential audiences, now is a good time to hone your focus on investors. This
will assist greatly with your efforts to simplify content as you need only
focus on the data-driven
stories
relevant to investors.
Embrace shared value
One of the best ways to instill investors with confidence is by showing how your
company is prepared to leverage its core competencies in service of the global
public good during the next crisis. This is a great way to position yourself as
a global citizen — a quality investors appreciate. Just as we’ve seen with
COVID-19, many companies have answered the
call
to pivot or retool their businesses to produce products and services needed to
address the pandemic. In your reporting, it’s more important than ever to
demonstrate how your company embraces shared
value in pursuit of
a more resilient future with you and your stakeholders in mind.
And, of course, we can’t forget the reminder nature gave us during widespread
global social distancing — that humans have significant impacts on the
environment. During the shut-down of the economy, greenhouse emissions are
lowering, and air and water quality are improving. However, as the UN
mentions,
these positive impacts will be short-lived if we don’t create a more sustainable
economy. Showing how your company is part of this positive transition is a sure
way to delight investors.
Think forward
Business disruptions are inevitable, and your investors want to know how you
plan to weather the next crisis — whether it be another pandemic or climate
disaster. Your report should show how your long-term strategy is focused on
maximizing resilience to both short- and long-term challenges. This includes
details both on how you responded to COVID-19, any missteps you made and lessons
learned, and what processes you’ve put in place to deal with similar challenges
in the future.
The future of reporting
While it’s still too early to tell how significantly COVID-19 will alter the way
we live, work and do business, solidifying your company’s place within this new
order is critical. If anything, we’ve learned to challenge many of our
preconceived notions about how to best do business. The true test is going to be
whether we are capable of dramatic positive change even when not spurred by a
global pandemic. We must resist the temptation to go back to ‘business as
usual.’ If anything, let this experience be an opportunity to improve the way
you report.
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With over 20 years' experience in sustainability communications, branding, and strategy, Guusje Bendeler (pronounced Who-sha) leads thinkPARALLAX in its mission to better the world by articulating and amplifying impact. Guusje leads day-to-day business strategy for the company, while providing senior counsel for clients such as International Paper, Southwest Airlines, Qualcomm and Scotiabank, among others.
Published Apr 23, 2020 8am EDT / 5am PDT / 1pm BST / 2pm CEST