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Are you an airline, hotel, or tourism-related company manager or entrepreneur? If “yes,” one of the areas that you need to have a lot of focus on is sustainability.
Sure, you might have already started on your report, but perhaps it is time to rethink the process. ESG sustainability reporting is the practice of disclosing a company’s information about its sustainability in the areas of environment, social, and governance.
Most governments and regulatory authorities have already adopted this process, and it is expected to become the norm. For example, the EU’s taxonomy for sustainable activities is extensive. It is aimed at ensuring that companies engrain sustainability into their operations.
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So, what can businesses in the hospitality industry do to operate in line with ESG reporting requirements? Here is everything you need to know:
ESG sustainability reporting is the process of revealing to stakeholders what your company is doing to stay sustainable.
Although the core target is the report, you should direct the bulk of the work toward creating structures that incorporate sustainability into company operations. The process of ESG sustainability reporting involves the following steps:
- Company assessment to identify opportunities and risks.
- Materiality assessment to identify reporting topics.
- Crafting strategies and action plans for the reporting process.
- Data gathering and analysis. (Make this an ongoing process.)
- Report generation and publishing.
To correctly follow the process of ESG reporting, you also need to understand the main principles that guide it. The most notable of these principles is accuracy. This principle aims to ensure that the information presented in the sustainability report is accurate. This is because only in this way can stakeholders can make the right decisions. Other ESG reporting principles include:
In most cases, new managers and entrepreneurs say that ESG reporting is difficult. This is probably because the process is complex and companies need to report on multiple variables.
For example, you might want to focus on supporting wildlife habitat protection, sourcing locally grown food, and recycling wastes. When these are combined with finance-related data, however, the results can become unmanageable. Complexity is one of the main reasons why you should identify a good ESG reporting framework and software.
Top-rated software on the market today can help you to automate data-gathering, analysis, and report generation. You might also want to work with an ESG sustainability reporting expert for further assistance.
Once you have gathered the data from your company’s selected sustainability activities, the final stage is generating a report. It is important that your stakeholders be able to read about and understand the company’s efforts. Therefore, you should make the process about the stakeholders from the start. Additionally, be clear about whom you are writing your report to. For example, are you targeting investors or consumers with your reports?
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You should also consider bringing the stakeholders onboard during the materiality assessment. Begin by asking them about the things they want the business to focus on. Because they will feel included in the process, the final version of the report could compel them to want to be more closely associated with the company. Alternatively, if you are targeting customers, they could become the ambassadors you need to drive more sales and build a stronger brand image.
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Regardless of your approach, you should execute your efforts in line with ESG sustainability reporting standards for your enterprise and your industry. Remember also that activities you undertake in one reporting session should form the basis for the next reporting period. To get assistance with the best ESG sustainability reporting software and technical guidance, visit Diginex.com.
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