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Writing a Sustainability Report 2
Understand the key components of a sustainability report and practical steps to write your first report.
1.Creating a culture of sustainability
In the journey towards sustainability, the tone is set from the top. Strong corporate leadership and a strategic structure are essential to ensuring the smooth process of sustainability reporting and implementation of initiatives. This section outlines key steps to ensure that your company's approach to sustainability is both effective and integrated with your corporate ethos.
2. How to approach sustainability reporting
Embarking on sustainability reporting can seem daunting but a structured approach can simplify the reporting process. Businesses can refer to general guidance from the Accounting and Corporate Regulatory Authority (ACRA) and Singapore Exchange Regulation (SGX RegCo) for listed companies. Companies are encouraged to adopt a sustainability reporting structure that is aligned with their selected sustainability framework.
Key Components of Sustainability Report (SGX Practice Note 7.6)
Read more about the details of SGX's requirements on sustainability reporting.
2.1 Determine reporting framework and scope
The following steps will provide guidance on considerations when selecting a sustainability reporting framework and the process to define the scope of your report.
2.1.1 Conduct internal assessment and landscape study to identify an appropriate sustainability framework
Selecting a sustainability framework that best suits your business needs is crucial. Businesses may also choose to adopt multiple frameworks to enhance their sustainability reporting. Some key considerations for selecting a framework include:
Internal considerations |
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Business partner expectations | Alignment of sustainability reporting frameworks with value chain partners to streamline data reporting efforts |
Peer performance | Review industry peers and align with their sustainability frameworks for easy benchmarking. |
External considerations |
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Compliance with regulation | Regulatory reporting requirements and/or listing rules may specify the reporting frameworks to be used. |
Application for grants, programmes and accreditation services | Grants, programmes or accreditation services may require sustainability disclosure utilising a specific framework in order to meet their eligibility requirements |
TIP:
It is common for businesses to use the following frameworks for sustainability reports:
- For businesses beginning their sustainability reporting process, the adoption of GRI Standards and the United Nations (UN) Sustainable Development Goals (SDGs) are recommended.
- For businesses looking to advance their sustainability reporting, the adoption of GRI Standards, UN SDGs as well as ISSB standards is recommended
2.1.2 Reporting Scope
After selecting a suitable reporting framework, it is important to define the scope of your business that will be covered in the sustainability report. Each framework may provide its own guidance on determining the reporting scope and boundary. Consequently, the reporting scope may vary based on criteria such as financial and operational boundaries, as well as the level of control and influence the business may have.
2.2 Identifying material topics and metrics
In sustainability reporting, materiality refers to the process of identifying and prioritising the most significant environmental, social and governance (ESG) issues that could impact an organisation and its stakeholders.
2.2.1 Conduct a materiality assessment
Businesses can follow the steps below to get started on this process:
2.2.2 Identify sustainability metrics most relevant for your business
Based on the chosen reporting framework and the final list of material topics, you can identify the relevant sustainability metrics for your report. The table below provides examples of common material topics and their corresponding metrics.
2.3 Collect ESG data and set targets
2.3.1 Identify key personnel who will be essential in the success of data collection
- Identify key personnel internally to manage, collect and consolidate the relevant data for the reporting process
- Actively engage employees by holding workshops or training sessions to clarify roles, responsibilities and necessary skills for effective ESG data management.
2.3.2 Gather baseline data on the identified sustainability metrics to understand your current performance
This involves:
- Setting up data collection processes: Adopt systems to collect accurate and consistent data. It is important to consider utilising software tools or easily accessible Excel data templates to streamline the data management process.
- Documenting data sources: When compiling the ESG data into one centralised location, it is important to track the details of the data sources and calculation methodologies to ensure transparency and verifiability.