As the leading ESG solution for small and mid-cap companies, Socialsuite speaks daily to executives about the misconceptions surrounding ESG reporting. These include:
Myth 1: ESG is for sustainable businesses and industries only.
ESG is a business model and industry-agnostic. It is a critical business risk, and can also create business value – so it should be central to every decision.
Myth 2: We need to have attained ESG perfection before reporting on it.
Simply starting to report and disclose ESG metrics today demonstrates a commitment to ESG transparency. Perfection is not a requirement and metrics can be improved over time – there’s no reason to wait.
Myth 3: My investors don’t care.
The days of investors focusing solely on financial statements are long gone. If you want to attract institutional investors or fund managers, you’ll need to meet ESG criteria.
Being seen to be believed Socialsuite’s chief impact officer, Dr Tim Siegenbeek van Heukelom, says the small-cap companies he works with already have great initiatives to publicly disclose – often more than they realize because they’ve never been collated in one place before. ‘There’s so much you’re already doing,’ he explains. ‘This is about making it visible to the market. Let’s find the quick wins. Then we can talk about how you might improve over time.’
Many companies start their ESG reporting in response to stakeholder demands. It often turns out to hold far greater value, however – so how do you get started?
1. Set a baseline: Choose a global framework, such as the WEF Stakeholder Capitalism Metrics, and start populating it with the data you already have. Think about the opportunities and risks that matter most to your company and its stakeholders.
2. Embed ESG into structures and processes: Make sure ESG is on your board’s agenda, and then embed ESG into your everyday decision-making and corporate operations.
3. Seek an external view: Working with expert partners can help you stay accountable, build knowledge, help validate your findings and identify opportunities for improvement.
4. Amplify your message: Once you have a regular reporting cycle of disclosures, you can spread those messages to investors and other stakeholders. Make sure your reports are clear – avoid technical ESG jargon and visualize the data.
5. Maintain the momentum: ESG is a continual journey of positive change. Think of ESG reporting as a roadmap – and know that your investors, employees, customers and society will use it to hold you to account.
How Socialsuite can help Socialsuite’s ESG platform is ideal for small to mid-cap companies that are just starting out on their ESG journey and looking to report against the globally recognized WEF Stakeholder Capitalism Metrics ESG framework.
With this fit-for-purpose approach, smaller listed or private companies no longer need large ESG teams to provide robust and transparent ESG reporting. They can share ongoing progress through quarterly updates, publish investor relations reports, access comprehensive ESG resources and make incremental progress with the support of a dedicated ESG coach.
Socialsuite’s cost-effective, action-oriented platform is so simple you could build a baseline report within an hour – and start reporting publicly in as little as 30 days.
Gain visibility and clarity on the way your actions impact the world around you. Socialsuite is an ESG and social impact coaching and reporting software solution, adopted by more than 160 organizations worldwide. Publicly traded companies across the Australian Securities Exchange, Nasdaq, NYSE and OTC Markets and more than 100 nonprofits trust Socialsuite to track and disclose the changes they are making to the world. Socialsuite has offices in Austin, Texas, Melbourne, Australia and Vancouver, Canada.
For more details on Socialsuite’s ESG solution, please contact Seth Forman, president of ESG at: seth@socialsuitehq.com.
