Updated: 27/07/22
Contrary to what it may seem at first glance, sustainability reporting is not only a mandatory act for some companies. It can be of great use to them because the benefits can be very large.. At the end of the day, the advantages are many and obvious, which is why reporting on sustainability is so interesting.
¿What are the benefits of reporting sustainability information?
It should be borne in mind that the financial information of the company is very important, but even more important is the forward-looking information. Both customers and investors are becoming more and more demanding, which is why there is an increasing demand for sustainability reports. They provide a picture of the company's future.
Concretely you can see a picture of the future of the environment, personnel, human rights, policies... All this allows the company and investors to see whether the company has a future or not.
Does sustainability information need to be disclosed?
Yes, disclosure of non-financial information helps to identify risks and opportunities for the company in the medium and long term. Thanks to this information, very favourable data can be obtained for the company, which means that it can be transformed into a more competitive business.
It has been demonstrated that through this type of information the company can anticipate possible changes and be prepared in good time. As the saying goes, you should not leave things to the last minute, which is why the sustainability report is so interesting. Even in cases where it is not necessary to present a sustainability report, it is a great tool for self-knowledge.
We can certify that this information not only benefits the company, but also investors and customers who can better understand the real value of the company in the present as well as in the future.
Moreover, it is clear to all investors that companies that are transparent are transparent because they have nothing to hide. For this reason, companies that opt for this type of information are always better valued.
What are the advantages of reporting and disclosure of such information?
Studies have shown that disclosure and reporting of non-financial information is the first step towards taking action in the social and environmental field. As a result, a suitable way forward can be created to adapt to future EU regulations. That said, some of the advantages that can be achieved are:
- Internal alignment.
- Reputational enhancement.
- Collective welfare.
- Anticipation.
- Risk identification.
- Measurement and comparability, internal and external
As you can see, there are many benefits that can be presented. For this reason, many companies, although not obliged to present a sustainability report, do so in order to make themselves look good to their investors. That way they can enjoy all these benefits and see a little more clearly the medium and long term future of the company.
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