In an era where conscious consumerism and corporate responsibility reign supreme, the call to embark on the sustainability journey has never been more resonant. The United Nations Department of Economic & Social Affairs underscored this shift, reporting a remarkable surge in sustainability reporting among major corporations. In 2019, a staggering 90 percent of S&P 500 companies published sustainability reports, a monumental leap from the mere 20 percent recorded in 2011.

While these statistics reflect the practices of large corporations with extensive investor and stakeholder groups, the profound benefits of crafting a sustainability report extend far beyond the boardrooms of giants.

Whether B2C or B2B, small-to-medium businesses can gain immeasurable value by embracing sustainability. Meeting the evolving expectations of stakeholders – clients, employees, investors, or consumers – can forge a path to long-term success in ethical and conscientious business practices and the bottom line.

Seventy-seven percent of consumers are motivated to purchase from companies committed to making the world a better place. In comparison, 73 percent of investors state that efforts to improve the environment and society contribute to their investment decisions.

“Investors won’t necessarily decide to buy your stock because of your ESG report, but it’s entirely possible they’ll decide NOT to buy if you DON’T have an ESG report.”
– Equinox Gold Corp’s VP of Investor Relations, Rhylin Bailie

For B2C businesses, the significance of sustainability with the modern consumer cannot be overstated. In an era where individuals are increasingly mindful of their purchasing decisions, a sustainability report is a powerful tool to communicate a company’s commitment to environmental and social responsibility. Consumers are not merely seeking products or services but connecting with brands that align with their values. A sustainability report becomes a narrative that showcases a business’s environmental impact and communicates its dedication to ethical practices, fostering a sense of trust and loyalty among consumers.

On the B2B front, the benefits are equally compelling. Many businesses, particularly those in the B2B sector, are integrating sustainability considerations into their supply chain decisions. Small and medium enterprises (SMEs) can position themselves as preferred partners for more giant corporations with sustainability goals by creating a sustainability report. This not only opens doors to new business opportunities but also enhances the overall reputation and credibility of the company within the industry. Additionally, as the business landscape shifts towards sustainability, proactive reporting demonstrates adaptability and forward-thinking, qualities highly valued in collaborative business ventures.

Today, let’s delve into the transformative power of crafting your first environmental, social, and governance (ESG) report. This journey begins with small steps but can leave an enduring mark on your company’s future.

Overcoming Hesitation: Learning from the Journey of Rhylin Bailie, an investor relations vice-president and sustainability reporting advocate in the mining industry.

In a Q&A with Equinox Gold Corp’s VP of Investor Relations, Rhylin Bailie, who has successfully created the first sustainability reports for several mining companies, we uncover the challenges and triumphs of initiating this transformative process. She shares insights applicable to businesses across industries.

1. What factors were holding you or your organization back from creating your first report?

The first report is the hardest. You want to make a good first impression, but you need to collect and verify the data, source the photos, and write the narrative, and that takes a lot of time and thought from a team that is probably already stretched too thin. Plus, it’s hard to measure the ROI. You’re basically trying to measure a negative: investors won’t necessarily decide to buy your stock because of your ESG report, but it’s entirely possible they’ll decide NOT to buy if you DON’T have an ESG report.

2. How did you overcome the hesitation?

We decided to start small. In the first year, we published a report that basically summarized our management approach to our material ESG topics and promised that we’d publish quantitative metrics the following year. That gave us a starting point, and we’ve been building from there.

3. What did you report on in the first report, and how did you determine the focus areas?

We reviewed peer reports to see what they considered the most material topics. We spoke to the team at our mine sites to see what data they had at hand and what data they thought they could most easily start collecting so that we knew we could continue to expand our reporting metrics but not stretch the team too thin.

4. What were the positive outcomes from doing the first report?

Very positive feedback from investors. We started to get ESG ratings instead of a big fat zero. And also, a very positive reaction from our team. We’re really proud of the things we’re doing from a community and environmental perspective and putting it down in writing allowed us to share those stories and pride in what we’re doing with our entire global team. Also, things that get measured get improved. Taking the time to identify the material issues in our business and then track our performance has allowed us to set measurable targets to improve our business.

5. What year did you create your first report?

My first ever ESG report was in 2009, while I was with a previous company. At my current company, we did our first report in 2021. It took us a while to get started because we’d done a succession of mergers, and every time we added a new operation, we had to bring their historical data into our data set and also review their data collection process to be sure the same protocols and criteria were being used at each mine site. Deciding to start with our management approach while we got the data aligned was crucial to kick-starting the reporting process.

6. What changes or reductions has your company achieved since its first report?

We’ve seen continual improvement in our safety stats and our environmental performance. We’ve implemented Towards Sustainable Mining protocols, which have improved performance across a wide range of metrics. Completing our Climate Action Report with a target to achieve a 25% reduction in our GHG emissions by 2030 kickstarted a strategy to implement operational efficiencies to reduce our diesel consumption, which also resulted in cost savings.

The Significance of Small Steps

As Rhylin shared, embarking on your first sustainability report is about more than achieving perfection or showcasing monumental accomplishments immediately. It’s about taking those crucial initial steps toward a sustainable future. I’ve created first reports for companies and seen firsthand how the first report is like planting a seed. It may start small, but it grows into something powerful with nurturing.

Igniting Employee Engagement

Crafting your sustainability report is a collective effort that ignites energy and enthusiasm among your team. It’s an opportunity for every employee to align with the company’s values and contribute to a greater purpose. According to Porter Novelli, 90 percent of employees who work at companies with a strong sense of purpose say they’re more inspired, motivated, and loyal.

Building Trust Through Transparency

In an era where transparency is paramount, a sustainability report communicates your commitment to ethical business practices. This transparency builds trust with stakeholders and customers alike. According to a report by Teneo for Aflac, 77 percent of consumers are motivated to purchase from companies committed to improving the world. In comparison, 73 percent of investors state that efforts to improve the environment and society contribute to their investment decisions.

“A surprising number of Americans believe companies should put people above profits. Americans believe that it is more important for a company to help make the world a better place (49%, very important) than to make money for its shareholders (37%), and a similar proportion of investors agree (40% very important).”

Future-Proofing Your Business

Sustainability isn’t just a trend; it’s a strategic move for long-term success. Initiating this journey positions your company as forward-thinking and adaptable, ready to navigate the evolving landscape of sustainable business. According to a Harvard Business Review Report, The Business Case for Purpose, 58 percent of organizations with a strong and clear sense of purpose experienced 10 percent or more growth during the last three years.

Expanding the Focus: Integrated Reports

For companies already producing an annual report, there’s an opportunity to quickly expand the focus into creating an integrated report. Incorporating sustainability content into annual reports gives stakeholders a more comprehensive view of your company’s overall performance. This approach aligns with the Global Reporting Initiative’s vision of integrated reporting to provide a holistic understanding of a company’s value creation.

Overcoming Hesitation

Now, you might be hesitating, and that’s completely normal. The journey into sustainability, especially in your first report, can seem challenging. However, as Rhyline shared, their initial hesitations were overshadowed by the positive impact on company culture, stakeholder relations, and even our bottom line.

Let’s Start the Conversation

If you’re on the fence about taking this transformative step, I’m here to help. As a freelance writer and designer specializing in annual and sustainability reports, I’ve assisted several companies in their initial steps toward a sustainable future. Reach out and explore how I can help kickstart your sustainability journey.

In conclusion, the power of your first sustainability report lies not in perfection but in the authenticity of the journey. It’s a journey that sparks employee enthusiasm, builds stakeholder trust, and future-proofs your business. So, why wait? Take those first small steps, and let the transformation begin. Share your thoughts, experiences, or questions in the comments below. For those interested in exploring collaboration and taking the first step toward sustainability, feel free to reach out at alison@nrgink.ca or visit my website for more information: www.nrgink.ca.