Create a sustainability report: Tips & strategies

Why sustainability reports are indispensable today

Sustainability is no longer a trend, but a permanent fixture in today’s business world. It is the basis for long-term business success. Customers, investors, employees and the public – they all expect companies to act responsibly. Sustainability reports are therefore essential and an integral part of a modern corporate strategy. They demonstrate a company’s commitment to ecological, social and economic issues.

Such a report documents the progress made and serves as an important means of communication with stakeholders.

A well-structured sustainability report strengthens the brand image and builds trust among stakeholders. It promotes transparency and credibility and sets the company apart from the competition. In a market where sustainable values are becoming increasingly important, a convincing report can be a decisive competitive advantage.

In addition, the transparent presentation of sustainability performance contributes to talent recruitment and retention. Skilled workers are increasingly looking for employers who share their values and are committed to a sustainable future.

The growing importance of sustainability is also reflected in political developments and social changes. In Germany, sustainability is increasingly becoming the focus of attention. The Sustainability Report of the Federal Ministry for Family Affairs, Senior Citizens, Women and Youth illustrates the relevance of sustainable development in German politics. The EU’s new sustainability reporting, which will be valid from 2024, also underlines this development.

Opportunities for future-oriented companies

Preparing a sustainability report offers companies a wide range of opportunities. By systematically addressing sustainability aspects, internal processes can be optimized, risks minimized and new business models developed.

• Cost savings: Improved resource efficiency and reduced emissions cut costs.
• Innovation potential: The search for sustainable solutions promotes innovation and the development of new products and services.
• Access to capital: Investors are increasingly incorporating sustainability criteria into their investment decisions. A good sustainability report can simplify access to capital.

A sustainability report is more than just a compulsory exercise. It is a strategic tool that companies can use to overcome future challenges and ensure long-term success. Investing in a professional sustainability report pays off – for the company, society and the environment. Around 40% of respondents in Germany would consider changing jobs if their employer was involved in climate-damaging projects. Find more details on German sustainability policy here.

Mastering the legal basics

Sustainability is becoming increasingly important, which is also reflected in the legal requirements. For companies, this means understanding and applying the legal principles of sustainability reporting. The complexity of the reporting obligations can seem challenging at first, but with the right knowledge and appropriate strategies, this challenge can be overcome.

Understanding the CSRD

The Corporate Sustainability Reporting Directive (CSRD) is at the heart of the legal framework. This EU directive obliges companies to disclose their sustainability performance. It affects companies of different sizes and from different sectors and is being introduced gradually.

The CSRD comes into force in stages. From financial years beginning on or after January 1, 2024, large companies are required to prepare extended sustainability reports. From January 1, 2025, all large corporations, regardless of their capital market orientation, and parent companies of large groups will follow suit. For capital market-oriented small and medium-sized enterprises (SMEs), this will apply from January 1, 2026. Certain small, non-complex institutions and captive insurance/reinsurance companies will also be affected. However, capital market-oriented SMEs can defer reporting until 2028 if certain conditions are met. Find out more about the CSRD and its introduction.

To better illustrate the contents of the CSRD, you will find a table with the most important introductory data here:

The following table provides an overview of the introduction of CSRD by company type.

Company type	Start date	Special features
Large companies (already subject to reporting under NFRD)	01.01.2024	Extended reporting obligations
Large corporations & parent companies of large groups	01.01.2025	Independent of capital market orientation
Capital market-oriented SMEs	01.01.2026	Deferral possible until 2028
Certain small institutions & captive insurance/reinsurance companies	01.01.2026

This table summarizes the most important start dates for the different types of companies. It is important to know the relevant date for your own company in order to be able to start implementing the CSRD requirements in good time.

Successfully implementing requirements

The implementation of CSRD requirements requires a systematic approach. The first step is to identify the reporting obligations relevant to your own company. The next step is to collect the necessary data and establish processes to ensure data quality.

The infographic above shows examples of a company’s CO? savings in tons, the percentage of renewable energy and the percentage of waste reduction in the first reporting year. The illustration shows that improvements were already achieved in all three areas in the first year, which underlines the effectiveness of the sustainability measures implemented.

Compliance roadmap for your success

A compliance roadmap helps companies to maintain an overview of the legal requirements and systematically approach the implementation of CSRD. Such a roadmap should define the most important milestones, responsibilities and resources.

A roadmap not only offers security in dealing with the legal requirements, but can also open up strategic opportunities. By actively shaping sustainability reporting, companies can strengthen their image, gain the trust of stakeholders and position themselves as pioneers. Mastering the legal requirements is therefore not just a duty, but an opportunity to secure the future viability of the company. A professionally prepared sustainability report helps to achieve sustainability goals and increase competitiveness at the same time.

Using the SDGs as a strategic reporting framework

The 17 UN Sustainable Development Goals (SDGs ) provide companies with an established framework for sustainability reporting. With their help, sustainability activities can be structured, made measurable and the contributions to sustainable development highlighted. For German companies in particular, orientation towards the SDGs is a valuable basis.

Identify relevant goals

First of all, companies should identify the SDGs that are most relevant to them. Not all 17 goals are equally important for every company. A materiality analysis, which takes into account the company’s impact on the environment and society as well as the expectations of stakeholders, helps with the selection process. For example, a tourism company could prioritize goals such as “Sustainable consumption and production” (SDG 12) or “Climate action” (SDG 13).

Develop measurable indicators

Once the relevant SDGs have been identified, the next step is to develop measurable indicators. These indicators quantify progress and present it transparently. For SDG 13, CO2 emissions per employee or the share of renewable energies in total energy consumption could serve as indicators. The German Sustainability Strategy 2025 More information on the German Sustainability Strategy can be found here. also emphasizes the importance of measurable goals and focuses on the 17 SDGs. However, the 2023 SDG Summit showed that 85% of the measurable sub-goals have not been achieved.

Presenting progress transparently

A convincing sustainability report presents the progress made in achieving the SDGs in a transparent manner. Companies should openly communicate successes as well as challenges and future goals. Authenticity and credibility are important in order to gain the trust of stakeholders.

Competitive advantages through SDG orientation

The SDG orientation in the sustainability report offers companies many advantages. It fulfills the increasing requirements for sustainability reporting, such as those of the CSRD, and creates competitive advantages. The company positions itself as a responsible player and strengthens the trust of investors, customers and employees.

Linking sustainability activities with global goals makes the company’s contribution to sustainable development visible. This strengthens the brand image and can have a positive influence on employee motivation and loyalty. The strategic use of the SDGs helps companies to create a sustainability report that ensures their long-term future viability.

From planning to publication: the practical guide

The path to a convincing sustainability report is complex. From the initial idea to the finished publication, there are many steps to consider. This guide offers you orientation and shows you how you can create an effective sustainability report with a good project roadmap, realistic time frame and a sound assessment of resources.

Putting together the right team

A successful sustainability report needs a committed team. Ideally, you should involve representatives from different departments in order to include all relevant perspectives.

• Sustainability management: Coordinates the entire process and contributes content expertise.
• Finance/Controlling: Provides the necessary data and key figures.
• Marketing/Communication: Responsible for the design and subsequent distribution of the report.
• IT: Supports data collection and processing.

The early involvement of internal stakeholders is essential for the success of the report.

Carry out a materiality analysis

The materiality analysis forms the foundation of every good sustainability report. This is where you identify the topics that are actually relevant for your company and your stakeholders. Take both internal and external perspectives into account.

What impact does your company have on the environment and society? Which topics are important for your customers, investors and employees? The results of this analysis determine which topics are covered in detail in the report.

Collecting and analyzing data

Data collection is a core component of report creation. Build up consistent data sets and pay attention to data quality. Established standards and key figures, such as those specified by the Global Reporting Initiative (GRI), will help you with this.

Digital tools can simplify the evaluation of data and increase accuracy. The data collected forms the basis for the presentation of your sustainability performance.

Structuring and designing the report

A clear structure and an appealing design are crucial for readability. Follow standards such as the GRI and use graphics and tables to present complex information in an understandable way. The report should be clear and concise and focus on the most important results.

The following table shows a typical timetable for the various phases of preparing a sustainability report:

Timetable for the preparation of the report

Phase	Period	Main activities	Departments involved
Planning	2-3 months	Materiality analysis, goal setting, resource planning	Sustainability management, controlling
Data collection	1-2 months	Data collection, analysis and preparation	Controlling, specialist departments
Report preparation	2-3 months	Copywriting, creating graphics, layout	Marketing/communication
Check & release	1 month	Internal and external review, approval process	Management, legal department
Publication	2 weeks	Printing, online publication, communication	Marketing/Communication

This table shows an exemplary schedule. The duration of the individual phases may vary depending on the size of the company and the complexity of the report.

Publish and communicate the report

The publication of the sustainability report is an important milestone. The report should be accessible online and communicated via various channels. Use your website, social media channels and press releases to present the most important results and enter into dialog with your stakeholders. A sustainability report is a valuable tool for making your sustainability performance transparent and strengthening the trust of your stakeholders. With careful planning and implementation, you can create a sustainability report that effectively communicates your sustainability strategy and contributes to sustainable development.

Key figures that really convince

A convincing sustainability report is based on reliable data and meaningful key figures. They form the foundation for evaluating a company’s sustainability performance and create transparency for all stakeholders. But which key figures are really relevant? And what is the best way to present them? This section will help you select the right key figures for your sustainability report and communicate them effectively.

Finding the right ESG metrics

ESG stands for environmental, social and governance (ESG). ESG metrics measure a company’s performance in these three areas. Which metrics are most suitable depends on various factors, such as the industry, the size of the company and the individual sustainability goals.

• Environmental metrics (E): CO2 emissions, water consumption, waste volume, energy efficiency
• Social metrics (S): employee satisfaction, occupational safety, diversity and inclusion, human rights in the supply chain
• Governance metrics (G): Management Board remuneration, compliance structures, corruption prevention

For a hotel, for example, water consumption per guest or the proportion of renewable energy could be relevant. An e-commerce company could focus on the CO2 emissions of its supply chain.

Systematically record and present key figures

The collection of key figures should be systematic and comprehensible. Established standards such as those of the Global Reporting Initiative (GRI) or the Sustainability Accounting Standards Board (SASB) are helpful here. These standards provide orientation and comparability.

The presentation of the key figures should be understandable and meaningful. Use tables and graphs to visualize the data and show trends. Comparisons over several years illustrate the development of sustainability performance.

Visualizing progress – examples and possibilities

The visualization of the data is central to the comprehensibility of the report. Here are some examples:

• Diagrams: Visualize the development of key figures over time. For example, a line chart can show the reduction in CO2 emissions over several years.
• Tables: Suitable for comparing different key figures or displaying detailed data.
• Infographics: Convey complex information clearly and concisely.

Finding the right balance: Completeness and comprehensibility

A sustainability report should contain all relevant information while remaining understandable and readable. Concentrate on the essential aspects and avoid superfluous details. A clear structure and concise language promote understanding.

Linking data with specific measures and goals

Key figures alone are not enough. Combine the data with concrete measures and targets. Tell stories that make your sustainability performance tangible and appeal to stakeholders on an emotional level. This creates trust and credibility. Click A Tree supports you in achieving your sustainability goals and presenting them in your sustainability report. With concrete projects, such as planting trees or collecting plastic from the sea, you can achieve measurable results that convince your stakeholders. Find out more about Click A Tree and our solutions.

Digital tools for efficient sustainability reporting

Digitization offers companies valuable support in sustainability reporting. From the initial data collection to the analysis and publication of the report, there is software that saves companies time and resources. In this section, you will learn more about the benefits of digital tools and get an overview of the most important categories.

Software solutions for sustainability reporting

The market for sustainability software is broadly diversified. The various tools can be roughly divided into the following categories:

• Data collection platforms: These platforms simplify the systematic collection of sustainability data within the company. Standardized forms and automated evaluations make the work easier.
• Reporting software: Use this software to create your sustainability report. Templates, integrated standards such as GRI, SASB or TCFD and automated report generation are just some of the advantages.
• ESG management software: These solutions cover the entire sustainability management process – from goal setting and action planning to reporting.

Advantages of digital tools

Digital tools offer numerous advantages for your company:

• Time savings: Automated processes reduce the effort required for data collection and reporting.
• Error reduction: Software minimizes errors during data entry and processing.
• Improved data quality: Standardized data collection methods ensure consistent and comparable data.
• Transparency and traceability: The software documents the entire process and enables seamless tracking.

Selection criteria for the right software

Which software is the right one depends on the individual needs of your company. Consider the following points:

• Company size and complexity: Small and medium-sized enterprises (SMEs) are often better suited to simpler solutions than large corporations.
• Reporting standards: Make sure that the software supports the relevant standards such as GRI, SASB or TCFD.
• Integration options: The software should be able to be integrated into your existing IT systems.
• Costs: Compare the prices and services of different providers.

Implementation and integration

Successful implementation requires careful planning. Involve all relevant stakeholders and train your employees in how to use the new software. Ensure smooth integration into your processes and systems.

Click A Tree not only supports you in implementing specific sustainability measures, but also in integrating them into your sustainability report. By combining measurable projects and digital reporting, you achieve maximum transparency and credibility. Find out more about Click A Tree’s reporting solutions. Today, digital tools are indispensable for a professional and convincing sustainability report. They simplify the process and increase the quality and credibility of your reporting. With the right software, you can present your sustainability performance transparently and strengthen the trust of your stakeholders.

Sustainability reports as a strategic communication tool

A sustainability report is more than just a compulsory exercise. It is a powerful communication tool for presenting a company’s sustainability performance and engaging in dialog with stakeholders. Leading companies use it to communicate authentically and really make a difference.

Target group-oriented communication

Communication in the sustainability report should be specifically tailored to the various stakeholders. Customers, investors, employees and the public have different interests.

• Customers: Are interested in environmentally friendly products and fair production conditions.
• Investors: Pay attention to financial risks and opportunities related to sustainability.
• Employees: Want to know what contribution their employer is making to sustainable development.
• Public: Expects transparency and responsible action.

A report tailored to the respective target group ensures greater relevance and credibility.

Using effective distribution channels

There are various channels for disseminating the sustainability report. From print advertisements and press releases to social media and the company’s own website.

• Print: Printed reports are particularly suitable for investors and business partners.
• Online: Publication on the website makes the report accessible to a broad public. Interactive elements increase its attractiveness.
• Social media: Companies can share the most important results via platforms such as LinkedIn, Twitter or Facebook.

The choice of the right channels depends on the target group and the communication goals.

Success measurement and storytelling

The impact of sustainability communication should be measured regularly. Key figures such as downloads, social media reach or media resonance show the success of the measures.

Storytelling makes a company’s sustainability performance emotional and tangible. Instead of just presenting facts, companies should tell stories.

Strengthen your sustainability communication with Click A Tree

Click A Tree supports companies in achieving their sustainability goals and communicating them convincingly in their reports. With projects for planting trees, collecting plastic or building schools, you can achieve measurable results. Find out more about Click A Tree’s communication solutions. Through concrete measures and transparent reporting, you gain trust and position yourself as a pioneer. The creation of a sustainability report thus becomes a strategic success factor.