Benefits of reporting
An effective sustainability reporting cycle, which includes a regular program of data collection, communication, and responses, should benefit all reporting organizations, both internally and externally.
Internal benefits for companies and organizations can include:
- Increased understanding of risks and opportunities
- Emphasizing the link between financial and non-financial performance
- Influencing long term management strategy and policy, and business plans
- Streamlining processes, reducing costs and improving efficiency
- Benchmarking and assessing sustainability performance with respect to laws, norms, codes, performance standards, and voluntary initiatives
- Avoiding being implicated in publicized environmental, social and governance failures
- Comparing performance internally, and between organizations and sectors
External benefits of sustainability reporting can include:
- Mitigating – or reversing – negative environmental, social and governance impacts
- Improving reputation and brand loyalty
- Enabling external stakeholders to understand the organization’s true value, and tangible and intangible assets
- Demonstrating how the organization influences, and is influenced by, expectations about sustainable development
Many GRI publications examine organizations' experiences with sustainability reporting, including the benefits they have experienced.