Purpose of Corporate Sustainability Reporting

Global Reporting Initiative’s Sustainability Reporting Framework provides a clear description of corporate sustainability reporting. The framework defines corporate sustainability reporting as the process of providing the measurement, disclosure, and accountability to external and internal stakeholders.

The main purpose of the sustainability reporting is to enhance organizational performance towards the achievement of sustainable development goals. Sustainability reporting is one of the many reporting systems which report on social, economic and environmental impacts. Other types of reporting that are synonymous to corporate sustainability reporting include the triple bottom line and corporate social responsibility.

According to the Global Reporting initiative, sustainability report provides a balanced and reasonable representation of an organisation’s sustainability performance including negative and positive sustainability contributions of the organisation.

Reporting organisations using the GRI reporting framework disclose outcomes and results that occurred within the reporting period. This reporting framework is based on the commitments, management approach and strategy of the organisation.

According to the GRI, sustainability reports can be used for various purposes. One of the purposes of sustainability reporting in accordance to the GRI reporting framework is benchmarking and assessment of sustainability resources.

In this respect, sustainability reports are used to determine the performance of the organisation in terms of laws, codes, performance standards, norms, and voluntary practices. Sustainability report also demonstrates the influence of the organisation’s expectations about sustainable development, and the organisation can influence such expectations.

Sustainability report can also be used to compare the performance of an organisation or different organisations over a given period of time.

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