The Friend team explained how FTSE 50 reporters performed against our four best-practice criteria while Blurred’s Jeremy Cohen offered insight into how to bring internal teams together on ESG issues with the aim of avoiding greenwashing. During the event, we highlighted the sustainability reporting suites that stood out this year:
Communication: Aviva, NatWest, Centrica
Strategy and targets: Unilever, Centrica
Materiality: British American Tobacco, Experian, Lloyds Banking Group
Transparency and balance: Reckitt, Shell, Prudential, Centrica
Five key takeaways from the event:
1. Avoid the tick-box Olympics
Prioritise the application of reporting principles and managing impacts, rather than dogged alignment with all frameworks out there. Concentrate on telling a cohesive story first.
2. Focus on one or two target audiences
If producing a standalone sustainability report, use stakeholder feedback, but avoid a report that does ‘all things for all audiences’. Consider how to tailor content for specific stakeholders, whether that’s a short video for customers outlining your sustainability ambition, a separate data appendix for investors or an issue-specific report for stakeholders with a particular interest.
3. Be upfront about challenges
Be open about any challenges faced, tackle disappointing performance head-on and be clear about impacts. Explain the impact of financial decisions on sustainability performance and vice-versa and be open about the trade-offs and challenges faced on the route to sustainability.
4. Ensure a clear and consistent communication thread though all channels and reports
Create a ‘story arc’ to communicate your sustainability narrative powerfully and adapt messaging through multiple channels. This will act like a ‘glue’ through reporting communications, tying all aspects together in a meaningful way.
5. Keep focused on material issues
With the increasing number of ESG disclosure requirements, it’s never been more important to keep content focused on the most material issues. Ensuring that content aligns to what’s material helps to keep reporting concise and makes it easier for stakeholders to find the information they need quickly. Be clear about what material topics are and keep a clear line of sight of the key issues across all areas including governance, data and metrics. Ensure material issues demonstrate a real relevance to business operations rather than a list of generic issues.
