The thrust of Sustainability is clearly empowerment of communities, capacity building, environment protection, promotion of energy efficient technologies and inclusive socio- economic growth. As businesses are expected to act in a socially responsible manner, organizations today are rapidly employing principles of sustainability and shared value approach in their operations. Also, due to emerging issues concerning climate change, human rights and economic crisis, public disclosure about the role of a business is observed very keenly by different stakeholders of the company, especially the investors. It can be noted that transparency and accountability that is guaranteed in the form of a sustainability report is an opportunity for businesses to showcase their socially responsible work and gain clean reputation in the society.
A sustainability report published by an organization particularly focuses on the economics, environmental and other social impacts caused by its routine operational activities. It can be an important guiding source to drive a firm towards a sustainable global change- one that involves sustainable profitability with ethical behavior, social justice and environmental care. Reporting the organization's governance and strategic framework, it can act as a measure of its commitment to a sustainable global economy.
Sustainability reporting offers a number of advantages and addresses numerous problems for the reporting firm. It has been found that there is a close connection between a corporate's social and environmental performance and the interest global investors show in that particular firm. Higher levels of transparency lead to better liquidity, decreased bid-offer spreads and increased stock price. Also, when companies report their sustainable initiatives, it can act as a positive driver to attract prospective sources of capital. Firms can now anticipate risks more effectively, improve agility in processes and prepare risk mitigation methods in advance. This can serve the case of shortage of natural resources. The discipline of sustainability reporting can help the organizations to optimally use resources and cautiously reduce the usage of non-renewable sources of energy.
Regular reporting helps firms record real-time data and other variables and consequently develop new means of information collection. This further aids in innovating processes, reducing wastage and gaining valuable foresight into the potential areas of growth and development. Sustainability reporting is thus an effective medium to productively engage with stakeholders, local bodies, global communities, and participate in inclusive sustainable growth the essence of which is to benefit society at large.