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ESG Reporting and Social Responsibility: How to Report on Your Social Impact

ESG Reporting

Environmental, social, and governance (ESG) reporting is a framework for companies to disclose information about their environmental, social, and governance performance. ESG reporting is becoming increasingly important for businesses of all sizes, as investors, customers, and employees are all demanding more transparency about how companies are managing their environmental and social impacts, as well as their governance practices.

Social responsibility is the ethical responsibility of a company to operate in a way that benefits society as a whole. This includes taking into account the interests of all stakeholders, including employees, customers, suppliers, and the community. ESG reporting can be a valuable tool for companies to communicate their social responsibility initiatives and progress to stakeholders.

Why is it important to report on social impact in ESG reports?

There are a number of reasons why it is important to report on social impact in ESG reports:

  • Investors are increasingly focused on social impact. Investors are demanding more transparency from companies about their social impact. ESG reports can help companies to disclose this information to investors and attract investment from socially responsible investors.
  • Customers are demanding more sustainable and ethical products and services. Customers are increasingly choosing products and services from companies that are committed to social responsibility. ESG reports can help companies to demonstrate their commitment to social responsibility to customers.
  • Employees are demanding more sustainable and ethical workplaces. Employees want to work for companies that are committed to social responsibility. ESG reports can help companies to attract and retain top talent.
  • Regulators are requiring more social disclosure. Regulators around the world are requiring companies to disclose more information about their social impact. ESG reports can help companies to comply with these regulations.

Also Read: ESG Reporting for the Public Sector: How to Demonstrate Your Commitment to Sustainability

What should be included in an ESG report on social impact?

ESG reports on social impact should include the following information:

  • A description of the company’s social impact goals and objectives. This should include a description of the company’s values and how they guide its social responsibility initiatives.
  • A description of the company’s social impact programs and initiatives. This should include a description of the company’s programs to promote diversity and inclusion, human rights, employee well-being, and community development.
  • A description of the company’s social impact performance. This should include a description of the company’s progress on its social impact goals and objectives, as well as the outcomes of its social impact programs and initiatives.
  • A description of the company’s social impact governance structure. This should include a description of the board of directors’ role in social impact oversight, the company’s social impact risk management process, and the company’s social impact incentives and compensation programs.
  • A description of the company’s social impact engagement with stakeholders. This should include a description of the company’s engagement with investors, customers, employees, and other stakeholders on social impact issues.
  • A discussion of the alignment of the company’s social impact strategy with the Sustainable Development Goals (SDGs).
  • A discussion of the company’s social impact contributions to its supply chain and value chain.
  • A discussion of the opportunities and challenges the company faces in achieving its social impact goals.
  • A discussion of the company’s plans to support its employees and communities in achieving their social impact goals.

Here are some specific examples of the types of information that can be included in each of these sections:

Social impact governance structure

  • The board of directors’ role in social impact oversight, such as whether the board has a social impact committee and what the committee’s responsibilities are.
  • The company’s social impact risk management process, such as how the company identifies, assesses, and manages social impact risks.
  • The company’s social impact incentives and compensation programs, such as whether the company has incentives for employees to achieve social impact goals or has a social impact performance bonus program.

Social impact engagement with stakeholders

  • The company’s engagement with investors on social impact issues, such as whether the company participates in social impact-related investor dialogues or has signed the Social Investment Principles.
  • The company’s engagement with customers on social impact issues, such as whether the company offers customers socially responsible products or services or has a social impact education program for customers.
  • The company’s engagement with employees on social impact issues, such as whether the company has an employee social impact council or offers employees training on social impact issues.
  • The company’s engagement with other stakeholders on social impact issues, such as whether the company is a member of a social impact-related industry association or has signed the UN Global Compact.

Alignment of social impact strategy with the SDGs

  • A description of how the company’s social impact goals are aligned with the SDGs.
  • A discussion of the company’s progress in achieving its SDG-aligned social impact goals.

Social impact contributions to supply chain and value chain

  • A description of the company’s social impact programs and initiatives in its supply chain and value chain.
  • A discussion of the company’s progress in improving the social impact of its supply chain and value chain.

Opportunities and challenges in achieving social impact goals

  • A discussion of the opportunities and challenges the company faces in achieving its social impact goals.
  • A description of the company’s plans to address the challenges it faces in achieving its social impact goals.

Supporting employees and communities in achieving social impact goals

  • A description of the company’s programs and initiatives to support its employees and communities in achieving their social impact goals.
  • A discussion of the company’s progress in supporting its employees and communities in achieving their social impact goals.

Best practices for reporting on social impact in ESG reports

Here are some best practices for reporting on social impact in ESG reports:

  • Be specific and quantitative. When reporting on your social impact goals, objectives, programs, initiatives, and performance, be as specific and quantitative as possible. This will help stakeholders to understand your social impact and assess your progress.
  • Use a recognized social impact reporting framework. There are a number of recognized social impact reporting frameworks, such as the Global Reporting Initiative (GRI) Social Standards and the Sustainability Accounting Standards Board (SASB) Social Standards. Using a recognized framework will help to ensure that your reporting is comprehensive and transparent.
  • Be honest and transparent. Don’t try to sugarcoat your social impact performance. Be transparent about the challenges that you are facing and the areas where you need to improve.
  • Update your reporting regularly. Social impact is a complex and evolving issue. Make sure to update your ESG reporting regularly to reflect your changing social impact goals, objectives, programs, initiatives, and performance.

Also Read: ESG Reporting and Technology: How to Use Technology to Improve Your ESG Reporting

Examples of companies that are reporting effectively on social impact in their ESG reports

Here are some examples of companies that are reporting effectively on social impact in their ESG reports:

  • Google: Google is a leader in social impact reporting. The company’s ESG report includes a comprehensive description of its social impact goals, objectives, programs, initiatives, and performance. Google also uses the GRI Social Standards to guide its social impact reporting.
  • Ben & Jerry’s: Ben & Jerry’s is another leader in social impact reporting. The company’s ESG report includes a detailed description of its social impact goals, objectives, programs, initiatives, and performance. Ben & Jerry’s also uses the SASB Social Standards to guide its social impact reporting.
  • Unilever: Unilever is another company that is reporting effectively on social impact in its ESG report. The company’s ESG report includes a comprehensive description of its social impact goals, objectives, programs, initiatives, and performance. Unilever also uses the GRI Social Standards and the SASB Social Standards to guide its social impact reporting.

These are just a few examples of companies that are reporting effectively on social impact in their ESG reports. There are many other companies that are doing good work in this area.

Conclusion

ESG reporting is an important tool for companies to communicate their social responsibility initiatives and progress to stakeholders. By reporting on social impact in their ESG. Book a demo now!

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