Build the house before painting the facade

Large companies, already further along in their sustainability journey, are increasing pressure on suppliers and expect transparency. Solutions such as Sedex and Ecovadis help them choose suppliers that best meet their sustainability requirements.

The key to meeting their sustainability reporting expectations of existing and potential new customers lies in aligning with international standards, establishing pragmatic sustainability management and communicating clearly. Focusing on standards often leaves more flexibility than expected. By following a structured approach, you can lay a solid foundation for credible reporting and, in the process, develop the content for your first report.

1. Double materiality: aligned with standards, applied with sense

Materiality analyses are central to most sustainability standards and regulations and are requested, for example, by solutions such as Ecovadis. The double materiality perspective ensures compliance with frameworks such as ESRS and GRI which are usually relevant for large customers. Your focus should be on an examination of your business model and supply chain. It helps identify important sustainability issues along with associated impacts, risks and opportunities. With this clarity, you can assess financial and impact materiality meaningfully, without needing an overly complex system.

2. Find out where you stand – and where you dare to go

Materiality analyses help prioritise sustainability issues in management. Topics with high financial and/or impact materiality demand particular attention. To manage them effectively, start by assessing where you stand: Have you already defined management systems, targets, measures and monitoring for your most material sustainability topics?

Once you know where you stand, ask yourself honestly: What level of ambition fits your business? Do you want to stand out from your competitors as the most environmentally friendly provider, or do you want to focus on meeting existing high requirements? Do you want to be the most attractive employer in the industry, or are you satisfied when absenteeism and turnover are under control? This assessment of the status quo of your sustainability management will also help you respond to customer enquiries and questionnaires as efficiently as possible.

3. Turning ambition into action

Your ambitions now need to become measurable goals with a concrete roadmap. Standards like GRI, ESRS or SBTi can help identify meaningful indicators. Make sure your goals are SMART and focus on impact, not actions. For example, aim for 10% annual energy savings instead of 80% LED bulbs by 2025. Gather your goals and measures into a roadmap with clear responsibilities. The roadmap will serve as the foundation for effective monitoring.

4. Connect the dots and draft the report

Good news: the hardest part is done. Now it’s time to make decisions concerning your sustainability reporting: Who is your target audience? Is it primarily customers or investors? What standards do they expect, and which do you want to follow? What are your system boundaries and who will write the report? Once the basics are clear you can tailor the content from the previous steps to your audience: report on your materiality analysis and then, for all material topics, outline where you stand, where you want to go and how you will get there.

When writing the report, you should above all ensure that you are transparent (be honest – don’t be afraid of self-reflection!), credible (aligned with standards!) and authentic. With the groundwork in place, your sustainability report becomes what it should be: the visible result of thoughtful, strategic action.

About Brugger + Partner:

The consultants at Brugger + Partner support companies in embedding sustainability that generates positive value – for the company, society, and nature. Further information can be found on the company's website.