Criteria for Good Sustainability Reporting

News from the AGN EMEA Accounting, Auditing & Education Committee (AAEC)

A good sustainability report offers companies many advantages; It provides information to stakeholders and ensures transparency. It serves as a central instrument for controlling all processes in sustainability management. It makes employees more aware of the issue of sustainability.

What makes a sound report?

The Institute for Ecological Economy Research (IÖW) and the entrepreneurial initiative future e.V. have developed a catalogue of general evaluation criteria. Below is a summary of the characteristics according to which all reports are evaluated:

1. MATERIAL REQUIREMENTS FOR REPORTING

Company profile:

• Background information on the company
• Relevant changes compared with the previous year
• Presentation of ownership structure
• Company shareholdings

Vision, strategy and management:

• Overview of internal and external stakeholder involvement
• Materiality analysis
• Corporate strategy
• Compliance and anti-corruption

Goals and program:

• Quantified report on sustainability-related objectives with timelines

Employee interests:

• Overview of guidelines, norms and standards on human and employee rights
• Remuneration policy
• Working time regulations
• Training
• Occupational health and safety
• Promotion of employee satisfaction

Ecological aspects of production:

• Energy management and climate protection goals
• Corporate production processes
• Raw materials and materials
• Waste and water management
• Logistics concept

Product responsibility:

• Impact of the product life cycle on sustainability
• Customer information and consumer protection

Supply chain responsibility:

• Identifying impacts and development potentials of the supply chain

Social environment/social responsibility:

• Information on the company’s regional responsibility
• Lobbying
• Political commitment

2. REQUIREMENTS FOR GENERAL REPORTING QUALITY

Credibility/openness:

• Write an open report on key sustainability issues
• Link it to the business strategy
• Publish external assessments and statements
• Provide comparable data
• Inset a management statement

Reporting on material topics:

• No omission of material topics
• Justify if an area gets special focus

Communicative quality:

• High quality of structure, text and design of the report
• Online reports with good navigation and menu navigation
• Reference to additional information and documents, if necessary

Should you ever lose track of the big picture, my colleagues and I from the AGN EMEA Accounting, Auditing & Education Committee (AAEC) will be happy to help and guide you safely through the IFRS and CSR jungle. As a member of AGN International, you can use the AGN AAEC Helpline at any time or contact me by email at carsten.ernst@wirtschaftstreuhand.de or by mobile phone at +49 173 8710322.

Carsten Ernst Managing Partner Wirtschafts Treuhand Group Stuttgart, Germany

– Expert in financial (IFRS) and sustainability (ESRS and GRI) reporting – Audit of financial and sustainability reports in accordance with ISAs – Member of the following AGN bodies: – EMEA Board of Directors (Chairman) – EMEA AAEC Accounting, Auditing and Education Committee (Member)