Sustainability reports must satisfy a diverse range of stakeholders. You have likely struggled with the preparation process due to the numerous factors to consider, which are comparable to those in business reports. With ESG reporting mandatory , ESG/CSR departments at growing enterprises must be prepared. Today, gain insights into how companies disclose their ESG perspectives in report format through examples of large corporations in the automotive, manufacturing, and chemical industries that are proactively preparing their sustainability reports.
What is a Sustainability Report?
A sustainability report is a report that measures and discloses an organization's economic, environmental, and social performance. It differs from a business report in that it includes ESG* information deemed important to investors and corporate stakeholders.
- What is ESG?
ESG is an acronym formed from the first letters of Environment, Social, and Governance, referring to a company's eco-friendly management, social responsibility, and transparent governance. ESG is a non-financial factor that, even if not reflected in financial statements, significantly impacts a company's mid-to-long-term value.
Sustainability Reports: 4 Production Tips Based on Case Studies of Large Corporations
1. Securing Credibility with Global Standard Sustainability Data | SK Eco Planet
Many managers secure as much data as possible—including analyzing ESG trends, collecting basic management data, and gathering stakeholder opinions—to prepare sustainability reports. Why is it difficult to organize this vast amount of collected data? According to the Korea Exchange website , there are as many as six global standards. For a manager preparing an ESG report for the first time, it is realistically difficult to adhere to all six global criteria.
For companies preparing ESG reports for the first time, the Korea Exchange. ESG reports are written based on principles related to ESG issues and strategies, or based on specific indicators. Major conglomerates primarily adopt GRI*, SASB**, and TCFD***.
- GRI: The Global Reporting Initiative (GRI) is an organization established in 1997 by the U.S. NGO CERES and UNEP, providing guidelines for preparing sustainability reports that report on the economic, social, and environmental impacts of all organizational activities.
- SASB: A global standard published by the Sustainability Accounting Standard Board, a non-profit organization that establishes non-financial reporting standards, recommending that companies communicate with investors and stakeholders by continuously reporting on issues highly relevant to the company.
- TCFD: A non-profit organization established by the G20 at the request of the Financial Stability Board (FSB) to prevent the significant impact of climate change on financial institutions and companies, as well as the decline in asset quality and the triggering of financial crises. It evaluates climate change-related governance, strategy, risk management, and risks and opportunities using key indicators.
I recommend referring to the SK Eco Planet Sustainability Report as the company that best summarizes global sustainability standards . You can immediately check the indicators and reporting details of the previously introduced GRI, SASB, and TCFD by visiting the website
2. Visualizing Sustainable Management Performance and Plans through Modeling | SK Hynix
The Global Reporting Initiative (GRI), widely adopted as the global standard for sustainability reports, requires the presentation of business performance over the past three years and areas for future improvement. As an example of effectively demonstrating these areas for improvement, SK Hynixpresented PRISM, a model capable of measuring ESG activities, in 2022.
The PRISM modelmeasures and analyzes ESG activities by classifying areas based on the meanings of the five words: Pursue, Restore, Innovate, Synchronize, and Motivate. SK Hynix effectively visualized the performance achieved in the previous year and its mid-to-long-term goals using the PRISM model. We have even calculated the connectivity between reports so that if you are curious about the detailed contents of the visualized performance on the SK Hynix Sustainability Management website, you can download the report PPTs to view them.
3. Presenting the Report Flow at a Glance with the Table of Contents Navigator | KEPCO KPS
Sustainability reports published by major corporations typically exceed 70 pages. In many cases, they can be over 100 pages long, so you likely often find yourself confused about which section of the table of contents you are currently reading.
KEPCO KPScreated a table of contents navigator on the left side of its sustainability report. This allows key stakeholders, including officials from public institutions and government ministries, to immediately identify which item within which section they are reading, and even includes page numbers to help them access the specific content they are looking for. If the volume of your report increases, we recommend creating a table of contents like KEPCO KPS did to ensure readers can navigate the report comfortably.
4. Clear Corporate Branding Reflected in Sustainability Reports | Samsung Electronics
Recently, companies preparing ESG reports are not merely publishing the reports but are making various attempts to communicate effectively with customers, shareholders, stakeholders, and employees through corporate branding.
Samsung Electronics is a prime example of a company attempting corporate branding through its sustainability reports . Samsung Electronics publicly discloses its ESG reports on its website, featuring high-quality images and a well-designed presentation that can make them seem complex. Furthermore, the company actively engages in customer communication by producing various content, including images and videos . I recommend examining this as an example of a sustainability report that considers the corporate image rather than merely serving as a document for information disclosure.
For sustainability reports,
you need a professional partner who understands a company's mid-to-long-term business strategy.
For companies, a sustainability report is not merely a list of ESG strategies and information. It must demonstrate the company's mid-to-long-term development by linking ESG elements to organizational strategy, organizational structure, and operational system activities with performance goals.
If you are writing an ESG report for the first time, it may be difficult to obtain good feedback if you review it only internally. If you are creating a report aligned with your sustainability strategy for the first time, collaborate with experts who have produced reports for various industries and companies. You can successfully produce a sustainability report tailored to your company's business strategy by working with Team PPT, which has created diverse presentations for companies ranging from mid-sized enterprises to large corporations.
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