• A sustainability report is an annual document issued by a company or organization about the economic, environmental, and social effects that arise from its daily activities.
• Sustainability reporting is considered non-financial reporting and is typically voluntary.

A sustainability report is an annual document issued by a company or organization about the economic, environmental, and social effects that arise from its daily activities. A sustainability report also showcases the organization’s values and governance model and outlines the connection between its strategy and its dedication to a sustainable economy. Sustainability reporting allows organizations to consider their effects on a broad range of sustainability issues, helping them to communicate their risks and opportunities.

Public reporting of environmental, social, and governance (ESG) issues began decades ago with corporate environmental reporting, which later expanded to corporate social responsibility (CSR) reporting. CSR and ESG are basically parallel to sustainability reporting, and the terms are often used interchangeably. These sustainability reports are becoming common practice for many organizations ranging from businesses to governments to non-governmental organizations (NGOs), and this reporting is considered non-financial and is typically voluntary. Organizations self-select what aspects of sustainability are addressed in their reports, and a report’s focus may be based on a variety of factors, including industry expectations, organizational principles, data quality and availability, or consumer demand. There have been some efforts in different countries, such as those in the European Union, to make ESG disclosures required for businesses that are a particular size or in specific industries.

The Global Reporting Initiative (GRI) established a reporting framework that is now the most widely adopted model used for sustainability reporting worldwide. The framework has gone through several revisions and appeared in new iterations over the years that boost its precision and applicability. Other organizations active in the standardization of sustainability reporting include the Sustainability Accounting Standards Board (SASB) and the International Integrated Reporting Council (IIRC).