Sustainability Reporting in US
How Stakeholders are pushing into companies with higher social and environmental standars, although sustainability reporting is not a law yet.
Companies in the US stand out for their Sustainability Reporting efforts and they are one of the top countries in their Nonfinancial transparency, disclosing on average more items on environmental and social practices than others.
Stakeholders in the US require public listed companies to disclose their Sustainability Reports and it has become a best practice for most of them. Also SMEs are getting into this trend and each year are increasing their Sustainability Reporting Efforts. Although, there are no U.S. regulatory requirements for U.S. based companies to present Non-Financial Reports.
US companies operating in EU countries and complying with reporting standards must meet the requirements of non-financial reports.
Over the years, sustainability reporting has become a major player towards achieving a more sustainable global economy. On the same side reporting increases companies’ accountability for their impacts and therefore enhances trust.
Sustainability information can also be used by governments to assess the impact and contribution of businesses to the economy and to understand how each player is tackling those topics that matter the most for them.
Those best practices keep creating transparency and help markets function more efficiently creating a healthier economy by:
- Building trust among your stakeholders
- Improve processes and systems
- Progressing vision and strategy inside organizations
- Reducing compliance costs
- Creating competitive advantages against those companies with no social commitment.
What must contain?
1. A brief description of the business model;
2. Description of the policies followed by the company regarding these issues, among others:
- Human rights.
- Environmental, social and HR.
- Anti-corruption and anti-bribery policies.
- Equality policies between men and women.
- Non-discrimination policies for people with disabilities and universal accessibility.
3. The results of these policies;
4. The main associated risks, linked to the company’s activities (including business relationships, products or services that may have negative impacts on these domains, and how those risks are managed by the company);
5. Key performance indicators relevant to your specific activity.
Sandards created by Global Organizations
There are several standards, guidelines and frameworks that have been created by global entities to help companies report their non financial information, including:
Global Reportive Initiative
Sustainability Accounting Standards Board
At Aplanet, we are commited to help and through our tools we are boosting organization´s social and enviromental impact with our 360º tech solutions.
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