Sustainability Reporting: PRAXI’s Strategic Support
Sustainability Reporting: PRAXI’s Strategic Support
The need to bring Sustainability into organizations
The increasingly social and environmentally responsible business environment requires companies to adopt a broader perspective that does not only consider the financial aspects of their business.
Companies that neglect ESG are likely to find themselves at a disadvantage, as stakeholders, consumers, banks, and investors reward companies that espouse sustainable principles.
How do we talk about sustainability in companies? The most powerful and functional tool is the Sustainability Report.
With GO GREEN, PRAXI’s expertise in ESG consulting joins Banca Popolare di Fondi’s financial support to guide Italian companies along this path.
The Sustainability Report is a corporate report that measures and communicates an organization’s economic, social and environmental performance over time.
It provides a comprehensive overview of a company’s activities and impacts beyond just financial results, highlighting efforts and progress toward sustainability goals.
It focuses on three main dimensions:
Economic: includes traditional financial indicators, but also extends to consider long-term value creation, financial resource management and financial transparency.
Social: covers the company’s social impacts, including those related to employees, customers, local communities and stakeholders. It includes aspects such as corporate social responsibility, diversity and inclusion, and worker health and safety.
Environmental: assesses the company’s impact on the environment, covering issues such as greenhouse gas emissions, sustainable use of natural resources, waste management, and adoption of environmentally sustainable practices.
The goal of a Sustainability Report is to provide a balanced and comprehensive picture of corporate performance, demonstrating the organization’s commitment to sustainability and facilitating transparency and accountability.
Importance of the Sustainability Report
The Sustainability Report does not only ensure regulatory compliance, but is a powerful communication tool to improve the company perception of the company by:
Stakeholders: it provides a clear view of social and environmental impacts, building trust
Consumers: new generations place a high value on social and environmental engagement, influencing purchasing decisions
Banks and other Financial Institutions: assigning a sustainability rating to companies demonstrates that they are in compliance with ESG policies, which makes it easier to obtain more favorable financing terms.
Employees: increases engagement and improves the company’s ability to attract and retain talent
Potential Risks of NOT Reporting
More limited access to finance: banks and investors are becoming increasingly selective, favoring companies with a sustainable footprint
Exclusion from RFP or bidding opportunities: increasingly, scores are receiving reward premiums in public bids or requests for proposals for those who claim to have published a sustainability report.
Poor brand reputation: lack of transparency about social and environmental impacts can negatively affect corporate reputation, especially among more conscious consumers.
Regulatory non-compliance: compliance with changing regulations avoids penalties and ensures business continuity
Sustainability Reporting Support: Our Process
PRAXI supports companies in preparing a Sustainability Report by following a five-step process:
Fast Organizational Audit
A snapshot of the organization’s internal and external sustainability situation through a self-assessment. Aim: To assess the degree of corporate maturity with respect to CSRD requirements and ESRS standards and to understand the need and extent of the intervention to be implemented.
Technical-Economic Proposal
From the results of the Organizational Audit and Priority Matrix. Aim: To enable the company to assess the feasibility, timing and modalities of the project and possible financeability.
Definition and Implementation of the Sustainability Strategy
Starting with the results of the Organizational Audit. Goal: To implement the Sustainability Strategy, translate it into goals and develop it into concrete, customized actions within a Sustainability Action Plan.
Company Adaptation
Adaptation to governance, business and organizational models and processes. Goal: Align the corporate structure with sustainability action items and digitize processes for automatic data capture.
Creation of a Sustainability Culture
Create an internal culture to change organizational behaviors in order to meet ESG/ESRS principles . Goal: To ensure that people in the company have the appropriate skill level and awareness through training sessions and ongoing engagement.
