Sustainability is the future of business. If you’re not actively integrating it into your global operations, you risk falling behind. Your sustainability report is more than a requirement; it’s an opportunity to demonstrate leadership, enhance reputation, and drive growth.
This blog post draws insights from the sustainability reports of three of Sweep’s clients: Auchan, Swisscom, and SSE, showing how they use these reporting exercises as a tool for value creation. If you approach it right, your sustainability report can become one of your most powerful assets. Here’s how you can make yours work harder for you.
Set bold, measurable goals that align with business outcomes
You need clear, measurable goals to track and demonstrate progress. Setting ambitious targets to achieve sustainability goals doesn’t just show you’re committed—it signals your leadership in driving meaningful change. It’s not just about meeting an arbitrary target; it’s about embedding that ambition in your strategy and showing how sustainability aligns with your broader business objectives.
Tips:
- Set ambitious, time-bound targets for key sustainability metrics such as carbon emissions, water usage, and waste reduction.
- Align these goals with your core business objectives to enable you to show how sustainability directly impacts your growth and profitability.
- Include interim goals to demonstrate progress along the way.
- Communicate about progress in the first half of the year to highlight early achievements and maintain momentum.
Example:
Swisscom’s commitment to reducing Scope 1 and 2 CO2 emissions by 90% by 2025 compared to 1990, and Scope 3 emissions by 50% by 2025 compared to 2013, is backed by detailed tracking, annual audits, and transparent reporting. This approach not only shows the company’s dedication to sustainability but also proves that these efforts have measurable business benefits.
Be transparent and build trust via third-party verification
Transparency is non-negotiable. Your stakeholders—whether customers, investors, or regulators—want proof that your sustainability efforts are real. Following recognized standards like the Global Reporting Initiative and obtaining independent audits and third-party verification lend credibility to your claims and ensure that your report is seen as trustworthy.
Tips:
- Use third-party verification to back up your sustainability data. This can be through independent audits or environmental certifications (e.g., ISO 14064-3 for emissions).
- Clearly explain your data sources and methodologies, ensuring they follow globally recognized standards.
- Always disclose any gaps in data or challenges to reinforce honesty.
Example:
Swisscom includes an annual audit of their greenhouse gas emissions in line with ISO 14064-3. This independent verification makes their sustainability claims more credible and trustworthy, ensuring they’re meeting stakeholder expectations for transparency.
Show how sustainability drives real business value
Your sustainability efforts should go beyond slogans, and create real value for your business and contribute to a positive societal impact. Whether it’s cost savings, new revenue streams, or enhanced brand loyalty, demonstrating how sustainability supports your bottom line is essential. Companies that do this effectively not only meet stakeholder expectations but also strengthen their competitive edge.
Tips:
- Demonstrate the link between sustainability and cost savings—such as energy efficiency, waste reduction, or optimized supply chain management.
- Show how your sustainability initiatives create new business opportunities or open up new markets (like green products or services).
- Highlight how sustainability can attract investors who are increasingly looking for companies with strong ESG performance.
Example:
Auchan’s commitment to energy efficiency through ISO 50001 certification is a great example. By reducing energy consumption and working towards net zero greenhouse gas emissions, Auchan is lowering costs while positioning itself as a leader in sustainable retail. This boosts both operational efficiency and its reputation in the market.
Use double materiality to strengthen your strategy
One of the most powerful frameworks to guide your sustainability efforts is double materiality. This approach considers both how environmental, social, and governance (ESG) issues, including human rights, impact your business and conversely, how your business impacts the world. By adopting this lens, you ensure that your sustainability strategy is comprehensive and future-proof.
Tips:
- Adopt a double materiality framework to understand both the risks and opportunities your business faces in relation to sustainability.
- Use tools like materiality matrices to prioritize the issues that matter most to your business and your stakeholders.
- Regularly update your materiality assessment to stay on top of emerging risks and trends.
Example:
SSE uses a double materiality framework to assess both the risks and opportunities they face in sustainability. By considering both internal and external factors, SSE has identified factors such as carbon emissions, energy transition policies, and supply chain management as key focus areas.
Engage stakeholders and build strong relationships
Your sustainability report is an invaluable tool to engage stakeholders—be they employees, customers, investors, or regulators—by showcasing your efforts to support biodiversity and enhance environmental health. By proactively communicating your sustainability journey and performance, you build stronger, more transparent relationships with those who matter most to your business.
Tips:
- Engage your stakeholders early and seek their input on sustainability issues that matter most to them.
- Use your sustainability report to highlight the value you’re creating for different stakeholders, from customers to investors.
- Be transparent about your challenges and gaps, and show how you plan to address them over time.
Example:
SSE engages with its stakeholders both internally and externally on issues like climate risk, energy transition, and supply chain sustainability. This helps them refine their strategy and ensure it meets the needs of all stakeholders. Their proactive engagement demonstrates that they value stakeholder input and are committed to long-term sustainability goals.
Position your company as a sustainability leader
In a crowded market, standing out is crucial. A strong sustainability report can position you as a leader in your industry, attracting customers, investors, and top talent who share your values. By showcasing your sustainability achievements, such as becoming “water-positive” by exceeding water usage reduction goals and replenishing resources, you not only boost your brand’s reputation but also enhance your market position.
Tips:
- Clearly communicate how your sustainability efforts are helping your organization to lead in your market—whether it’s through innovation, partnerships, or customer engagement.
- Position sustainability at the heart of your brand messaging to attract customers who value responsibility.
- Demonstrate how you’re contributing to global sustainability goals like the United Nations’ Sustainable Development Goals (SDGs), or the Paris Climate Agreement.
Example:
Auchan’s integration of sustainability into its value chain—through initiatives like responsible sourcing and local partnerships—positions it as a leader in sustainable retail, and appeals to both environmentally-conscious customers and investors looking for evidence of corporate resilience.
Keep your sustainability strategy dynamic and future-ready
Sustainability isn’t a one-time project; it’s a continuous journey. To maintain your competitive edge, regularly revisit your strategy and update your goals based on new developments in regulations, technology, and stakeholder expectations. Integrating sustainability into all operations, including data centers, demonstrates your commitment to long-term progress. A dynamic sustainability report shows that your company is agile and committed to long-term progress.
Tips:
- Update your sustainability goals regularly to reflect emerging trends, regulatory changes, and stakeholder feedback.
- Track your progress on key metrics and ensure you’re pushing the envelope on innovation.
- Stay ahead of new sustainability standards and regulations, such as the EU’s Corporate Sustainability Reporting Directive (CSRD), the California Climate Laws, and others, to ensure compliance and leadership.
Example:
SSE continuously updates its materiality matrix and sustainability strategy to stay relevant in a fast-evolving market. This ensures that their sustainability efforts are always aligned with both internal goals and external trends, ensuring they remain leaders in sustainability.
Your sustainability report as a value driver
Your sustainability report is one of your company’s most powerful tools to create value. It’s not just about showing how your business is “doing good”—it’s about demonstrating how sustainability drives your long-term success. Whether it’s through setting bold goals to achieve zero waste and become water positive, showcasing your impact, or engaging stakeholders, your sustainability report should be a strategic asset that positions your company for future growth and competitive advantage.
