Integrating an ESG report into an annual report
In the same way amalgamating a CSR report into your annual report is now commonplace, integrating your ESG report into your annual report is becoming standard practice, as opposed to producing a stand-alone report(s).
An annual report’s structure tends to follow a familiar structure regardless of the organisation. Perhaps charities differ the most, but in the main part, LSE-listed companies (London Stock Exchange) tend to have a similar structure. Something like this, but can vary:
Message from the CEO
Message from the CFO
Message from a board member
Highlights from the year
Strategic report
Governance
Sections on specific activities or divisions
Risk management
Financial statements
CSR (Corporate Social Responsibility) and ESG (Environment, Social and Governance) reporting, by its very nature, offer up different types of reporting to stakeholders. They both have a slightly different agenda and are becoming more and more important and sought after by potential stakeholders and potential investors.
Naturally, the CSR and ESG sections should reside in the ‘front end’ of the report. We’d suggest before any section on individual division or company activities as the data, strategy and results often affect the subsidiaries and activities.
We suggest applying a different page structure and colour palette to indicate to the readership, the less corporate section of reporting and the opportunities they offer.
So where to put them… they are part of the strategy, they are part of the governance. Why not slot these sections between strategy and governance? Like any document, an annual report needs to be engaging and by including them in this suggested structure, they will break up the more formal sections of the report.
Another useful and engaging ‘device’ is to draw out data from the CSR and ESG and use them throughout the report as pullout ‘side bars’. This creates a more integrated report that will be more engaging, especially when you reference some data and align it with the CEO’s statement, for instance.
Integrating a CSR and ESG report into your annual report isn’t difficult, but with good design, it will deliver a heightened experience for you readership and offers a host of opportunities for better, deeper reporting. Talk to us about it.