Page 168 - EN_final

Management of sustainability in details

Step 5: Reporting and communicating

SDGs provide a holistic, comprehensive approach towards solving world’s most pressing

problems. If SDGs Agenda is to succeed it has to consider sustainable approach of various
stakeholders, including business sector, which through SDGs conducted activities and proper
reporting has a crucial role in achieving SDGs. Through business reporting and improvements in
firms sustainability reporting, society edges closer towards achieving SDGs. Transparent
reporting and communication are important since it enables and fosters firms to align their
activities with societal expectations (GRI, UN Global Compact, n.d., pp. 9-10).

Sustainability reporting and communications were often in the past considered as a compliance
activity, whereas today it is seen as an important new strategic business approach (Amfori, 2019,
p. 4). Sustainability reporting and disclosure practices have increased due to stakeholder’s
expectations on business information transparency and openness. Continuous reporting and
communication on firms progress regarding SDGs helps to comprehend and fulfill stakeholders

needs. Vast majority of firms today disclose their sustainability results, progress and impact (GRI,
United Nations Global Compact & WBSCD, 2015, p.25), where 80% of firms all over the world
report on sustainability, and third-party assurance of business sustainability information in reports
has become a normal business practice (KPMG, 2020, p.5).

Reporting on the SDGs

Sustainability reporting has a significant role in informing stakeholders on the activities and
initiatives firms embark on in order to contribute to creating more sustainable and just society. It
also enables firms to indicate, be transparent and disclose their motivation, efforts and goals they

are trying to accomplish, and project their strategic perspective, value creating strategy, resilience
and “doing good” potential, where stakeholders can accordingly compare various firms and often
value and reward sustainable ones (World Business Council for Sustainable Development &
Radley Yeldar, 2021, pp. 4-5). Understanding and taking action on basis of what firm is doing is
key to achieving SDGs (Adams et al., 2020).

17 SDGs are largely interconnected ranging from social to environmental goals (Business and
Sustainable Development Commission, 2017, p. 22). According to Better Business, Better World
report, achieving the SDGs could create more than 380 million jobs (WBCSD, 2017, p. 8).
Accordingly, a shift needs to happen from corporate social responsibility (CSR) approach to more
holistic sustainable development goals (SDGs) approach. Firms that implement SDGs into their

strategies tend to be more prepared for the future, as topic of sustainability will be increasingly
more significant and disruptive in many sectors, similar to digital technologies, whereas firms that

2
168
168