How to Report on Sustainability Efforts: A Guide for the New Zealand Market

Sustainability is no longer a 'nice to have'; it has become a polarising focus for businesses worldwide.  Reporting on your sustainability efforts is a way to demonstrate corporate responsibility and a means to build trust with stakeholders, including customers, investors, and the community at large.  Incorporating Sustainability into your business model is more than mere compliance; it will serve you as a risk management and operational growth strategy to future-proof your business.  This article provides a guide on how to get started on sustainability efforts in the New Zealand market.

Understanding Sustainability Reporting

Sustainability reporting involves disclosing an organisation's environmental, social, and governance (ESG) performance.  It provides transparency about your business's impact on the environment, society, and governance practices.  In New Zealand, sustainability reporting is increasingly recognised as essential for business accountability and long-term success.  While only a select few are required to report by law, voluntary disclosures give businesses a competitive edge. Think of reporting as a benchmarking exercise for your business.

Key Components of a Sustainability Report

Have an apparent purpose from the beginning.  Understand who you are trying to reach.  Is this report for you as the owner, wider team, investors, or customers?  What do you want them to learn from this report?

The report's outcome should help both internal and external stakeholders to have the information they need to make decisions.

Understanding your audience will allow you to identify the most appropriate publication channel:

·         Sustainability website pages

·         Annual report chapter

·         Stand-alone sustainability report

·         Social media

Your Sustainability Champion

Assigning a dedicated person to oversee and drive change in your organisation increases the speed of adoption and your ability to leverage your story from a marketing perspective. Ideally, the person you choose will be interested in Sustainability, or have behaviours that would facilitate or influence a culture change. 

Your Sustainability Journey

Our review of businesses that have gone down the path of Sustainability clearly shows it as a story of evolution. 

Embarking on the journey of Sustainability often begins with the simplest of actions, like dipping your toe in as a test,  This initial step—be it reducing single-use plastics, opting for a reusable bag, or starting a small compost bin—may seem minor but it sets the scene for a much larger commitment.  As you gradually immerse deeper, each small change acts as a step in time, building both momentum and confidence.  Just as a dip can evolve into a plunge, these tentative beginnings can lead to profound transformations, inspiring personal growth and potentially a ripple effect within your community. 

Sustainability is not just a destination—it's a continually evolving journey where each small step propels us towards a more mindful and harmonious existence with our planet.  Sustainability practices are known to increase company profitability; the mindset shift of focusing on waste reduction or increasing productivity creates positive activity within a business.

We recommend you measure your actions.  Measuring helps you see the benefits you are gaining.

As you take your plunge, we also recommend you consider a materiality assessment to identify focus areas. It's also important to talk to your customers, understand what they think you should focus on, and whether they are interested in you sharing the outcome of your journey.

A year down the track, how will you want to summarise your journey and tell your full story?

Common mistakes

1. Seeking perfection:  As with anything new, nothing is always perfect.  Sustainability is a relatively new concept in the corporate world, and it will take time to build up the data, skills and competency in the subject.

2. Storytelling, or lack thereof:  Data means nothing without context; consumers and investors don't want to 'fill in the blanks. '  If you don't have all the information yet but plan to track it for next year's report, say that!  People want transparency, and they want to see that you're trying.  Consumers and stakeholders want openness, honesty and transparency.

Conclusion

Effective sustainability reporting is crucial for New Zealand businesses that want to demonstrate their commitment to environmental and social responsibility.  Those who ignore the increasing consumer pressure to do business for good will get left behind.  You can create comprehensive and impactful sustainability reports that resonate.

Businesses wanting to enhance their sustainability reporting should seek expert advice or partner with sustainability consultants.  Staying informed about the latest trends and regulations in Sustainability can also ensure that your reports remain relevant and impactful.

Here at Business Studio Innovators, we see sustainability as another tool that our clients and we need as part of our toolkit.  We are here to help if you want more information about getting started.