A sustainability report is not just a legal obligation for companies—it’s also a tool to create transparency and strengthen market position. Here you’ll find the key steps and requirements:
A sustainability report is more than just a requirement—it’s an opportunity to showcase progress and secure long-term competitive advantages. In fact, research from the Institute of Sustainability Studies highlights that companies with robust sustainability initiatives often experience increased stakeholder loyalty and improved access to capital (source).
A sustainability report consists of three main areas that clearly and transparently present a company’s ESG performance (Environmental, Social, Governance). This transparency is increasingly demanded by investors and consumers alike, who are seeking evidence of genuine progress rather than greenwashing.
"With a sustainability report, you inform about all of your company’s sustainability achievements." – SAIM
| Report Component | Required Information | Purpose |
|---|---|---|
| Company Profile | Business model, locations, number of employees | Provides necessary context |
| Sustainability Strategy | Goals, timeline, responsibilities | Clarifies the strategy |
| SDG Alignment | Contribution to UN Sustainable Development Goals | Establishes global relevance |
Once company goals are defined, the next step is selecting and prioritizing relevant sustainability topics. Aligning with the UN SDGs not only demonstrates global responsibility but also connects company actions to internationally recognized priorities, which can enhance credibility and stakeholder engagement.
This process involves four steps:
Based on this, measurable outcomes and key figures are defined. According to Sustain.Life, companies that conduct thorough materiality analyses are better able to focus their resources on the most impactful sustainability issues, resulting in more meaningful reporting (source).
The report focuses on concrete KPIs (Key Performance Indicators) and their development. These should be quantifiable, comparable, and in line with ESRS standards (European Sustainability Reporting Standards). For example, tracking year-over-year reductions in CO₂ emissions or improvements in employee retention rates provides tangible evidence of progress.
"Reporting documents the sustainable development of the company. This helps improve its sustainability performance." – SAIM
Key figures include:
The data should be machine-readable and externally audited to meet CSRD (Corporate Sustainability Reporting Directive) requirements. Presenting key figures over several years makes it easier to assess progress and identify trends, which is essential for continuous improvement.
An effective sustainability report requires careful planning and structured implementation. Here are the key steps to create a clear and informative report.
Solid planning is the first step. Assemble a team from various departments familiar with your company’s sustainability strategy. This team selects the appropriate reporting standards and sets the strategic direction. Involving cross-functional teams ensures that all relevant data points are captured and that the report reflects the organization’s full range of sustainability activities.
| Planning Phase | Core Tasks | Responsible Parties |
|---|---|---|
| Strategic Direction | Define goals, select reporting standards | Management, sustainability officers |
| Team Building | Assemble the team, assign roles | Project management |
| Frameworks | Select suitable standards such as ESRS or GRI | Sustainability officers, external consultants |
With a clear plan, you can focus on data collection and analysis.
The foundation of a good report is precise and reliable data. Collect relevant key figures systematically and document the methods to ensure transparency. Standardized data collection processes, such as those recommended by GRI, help ensure consistency and comparability across reporting periods (source).
Key steps in data collection:
After collecting data, it’s time to actually create the report. Make sure the report meets CSRD requirements.
Key points when writing:
"Reporting documents the sustainable development of the company. This helps improve its sustainability performance." – SAIM
After data collection and planning, it’s important to choose the right reporting standard to present information clearly and comparably. Companies must consider different frameworks, each with specific requirements. Here’s a summary of the three most important standards—GRI, ESRS, and DNK.
The Global Reporting Initiative (GRI) standards are widely used worldwide and serve as a basis for sustainability reporting. They cover economic, environmental, and social aspects and provide a clear structure for reporting. According to GRI, over 10,000 organizations in more than 100 countries use these standards, making them the most widely adopted framework globally (source).
| Area | Main Aspects | Details |
|---|---|---|
| Economy | Financial performance, market presence | Concrete figures |
| Environment | Resource consumption, emissions | Focus on impacts |
| Social | Working conditions, human rights | Societal impact |
The ESRS were developed specifically for the EU and are mandatory for large companies under the CSRD. This standard emphasizes precise and quantifiable reporting.
The German Sustainability Code (DNK) is a national standard tailored to the needs of German companies. It combines strategic analysis with systematic process management to effectively capture sustainability goals.
Key elements of DNK:
Choosing the right reporting standard is crucial to ensure transparent and comprehensible sustainability reporting.
The right combination of software and methodological approaches can significantly improve a sustainability report. With modern tools, companies can efficiently collect, analyze, and visually present their results. According to EcoVadis, digital reporting platforms can reduce reporting time by up to 40% and improve data accuracy (source).
Selecting suitable software not only makes data collection easier but also analysis and presentation. Here are some tools particularly well-suited for this purpose:
| Tool | Main Functions | Practical Example |
|---|---|---|
| VERSO | LkSG compliance, CSRD reporting | RATIONAL uses VERSO for LkSG compliance |
| Envoria | CSRD, EU taxonomy, CO₂ reporting | ElringKlinger AG uses Envoria |
| Code Gaia | CSR reports, carbon footprint | Seibert Media GmbH creates CSR reports with it |
"We chose Envoria as our ESG software solution because it supports us in implementing our CSRD, EU taxonomy, and CO₂ reporting. It was especially important to us that the solution could be tailored to our company’s specific needs. The expertise of the consultants is also noteworthy."
In addition to pure data collection, the visual and comprehensible presentation of results also plays a major role.
A well-structured layout makes reports not only more readable but also more persuasive. Key elements include:
One example is Simply V, which successfully visualized its resource consumption and waste reduction measures in March 2023 using impactful graphics and stakeholder testimonials. Such approaches can increase engagement and make sustainability achievements more tangible for readers.
External validation ensures greater credibility and strengthens trust in the report. According to PwC, an external audit can help companies identify gaps in their reporting processes and enhance the reliability of disclosed information (source).
Key verification measures include:
With a combination of powerful tools, a clear layout, and independent validation, a sustainability report becomes not only informative but also compelling.
A sustainability report must be continuously updated. Pay particular attention to the following points:
A report that discloses current key figures and their foundations provides a solid basis for sustainable business growth. Regular updates ensure that the report remains relevant and continues to meet evolving stakeholder expectations and regulatory requirements.
A well-structured sustainability report can be an effective tool for business growth. Three key points are crucial:
With regular adjustments and a clear focus on growth, you can not only meet legal requirements but also strengthen your market position. As global expectations for transparency and accountability continue to rise, companies that lead in sustainability reporting are better positioned to build trust, attract investment, and drive long-term value.