Preparing a Sustainability Report: A Step-by-Step Guide

The English translation of the text is as follows:

Preparing a Sustainability Report: A Step-by-Step Guide

Sustainability is at the heart of today's business world and has strategic importance for companies. In this context, accurately and transparently reporting your sustainability performance provides a critical source of information for all your stakeholders.

The ISO 14064 Standard and the GRI Standard support reporting processes across a wide range, from greenhouse gas emissions to water footprints and economic sustainability data.

This guide details the fundamental steps of the sustainability reporting process and the best practices in this area. We invite you to discover how the steps taken towards a sustainable future are reported.

Sustainability Reporting Process and Its Importance

The sustainability reporting process is a critical tool that measures the extent to which businesses comply with their sustainability goals and commitments. This process transparently presents the environmental, social, and economic performance of the business to both internal and external stakeholders.

In this section, we will detail the importance and key steps of the reporting process.

Reporting in Compliance with ISO 14064 Standard

The ISO 14064 standard is an internationally recognized approach for the quantification, reporting, and verification of greenhouse gas emissions. Reporting in compliance with this standard offers the potential for recognition and acceptance at both national and international levels.

Reporting in Compliance with GRI Standard

The main goal of the GRI Standard is to support the widespread adoption of sustainable business practices by encouraging companies to clearly report their environmental, social, and economic impacts.

GRI achieves this goal by establishing sustainability reporting standards. These standards are called the GRI Standards and guide companies in measuring, monitoring, and reporting sustainability performance.

The GRI Standards cover a wide range of topics in various areas, including environmental issues, human rights, business ethics, employee rights, and supply chain management. These standards aim to provide greater transparency and trust to stakeholders by helping companies prepare their sustainability reports in a consistent and understandable manner.

Reporting Greenhouse Gas Emissions

Greenhouse gas emissions play a critical role in climate change. For businesses, accurately and transparently reporting these emissions is the key to establishing a sustainable environmental profile.

Businesses can follow the steps below in reporting emissions:

• Identify Emission Sources: Determine all sources of greenhouse gas emissions arising from business activities.

• Data Collection: Collect data from each emission source.

• Calculate Emissions: Calculate total emissions based on the collected data.

• Reporting: Report the calculations and methodology transparently.

Economic Sustainability Data and Reporting

Economic sustainability ensures that a business remains profitable and competitive in the long term. Reporting this data provides critical information about the company's financial health and sustainability strategies.

Businesses can follow the steps below to report economic sustainability data:

• Financial Data Collection: Collect data on all financial transactions of the business.

• Analysis: Analyze the financial data to evaluate the company's economic status.

• Sustainability-Related Goals and Strategies: Determine economic sustainability goals and create strategies.

• Reporting: Report the collected data and analysis transparently.

Water Footprint Calculation and Reporting

Organizations worldwide are adopting water footprint calculation to better understand the environmental and social impacts of water use.

Water footprint calculation and reporting play an important role not only in the protection of natural resources but also in organizations' social responsibility commitments.

What is a Water Footprint?

The water footprint measures the consumption of fresh water resulting from the consumption of a product, service, or organization. This assessment is made with a broad perspective to cover the entire supply chain, allowing organizations to fully understand their water use and risks.

Water Footprint Calculation

The water footprint is calculated by dividing it into three main categories: blue, green, and gray.

• Blue Water Footprint: This category refers to how much surface and groundwater is consumed. This water is particularly used in industrial processes and agricultural applications like irrigation.

• Green Water Footprint: This refers to the water stored in the soil as a result of natural precipitation and used for plant growth.

• Gray Water Footprint: This category shows the amount of water required to clean the polluted water used during product manufacturing and discharged into nature.

The Importance of the Water Footprint

Accurately determining an organization's water footprint is a sign of its commitment and practices towards sustainable water resources. It also helps them identify and manage water risks throughout the supply chain.

Reporting in Compliance with ISO 14046

Water footprint reporting is considered part of an organization's water management strategy.

The ISO 14046 standard aims to provide guidance for the sustainable management of water resources.

The application of this standard encourages the effective and efficient use of water while also helping to protect water resources. Determining the water footprint of products or services can help companies assess their environmental impact and develop their sustainability strategies.

These reports provide transparent and comprehensive information to internal and external stakeholders about the organization's water usage and sustainability commitments.

Life Cycle Assessment (LCA) Calculation and Reporting

What is LCA?

Environmental Life Cycle Assessment (LCA) is a method used to comprehensively analyze the environmental impacts of a product or service across its production, use, and disposal phases.

LCA Calculation

The ISO 14040 standard defines the fundamental principles and stages of LCA and provides guidance for LCA applications. The purpose of this standard is to offer an appropriate approach for assessing the environmental impacts of products or services throughout their life cycle.

The main stages of the ISO 14040 Standard are:

• Goal and Scope Definition: The purpose and scope of the LCA analysis are defined. Which product or service will be assessed, which stages will be included, and which environmental impact categories will be evaluated are determined.

• Definition of Life Cycle Stages: The life cycle stages of the product or service are determined. This usually includes stages such as raw material extraction, production, distribution, use, and waste management.

• Data Collection: Data on the energy, materials, water, and other resources used in each stage are collected. This data will then be used for analysis.

• Calculation of Environmental Impacts: Environmental impacts throughout the product or service life cycle are calculated using the collected data. These impacts may include factors such as energy consumption, greenhouse gas emissions, and water usage.

• Impact Assessment: The calculated environmental impacts are evaluated under predetermined environmental impact categories. Different impacts are compared at this stage.

• Interpretation: The results obtained are interpreted. Which stages or impacts stand out and where improvements need to be made are evaluated.

LCA calculation and reporting is an important tool in product design, determining sustainability strategies, and making environmental management decisions. This process contributes to the development of more sustainable products and services by reducing environmental impacts.

Key Points to Consider in Economic Sustainability and Reporting

Sustainability is directly related to the preservation of natural resources. However, the economic dimension of sustainability is also deeply linked to environmental sustainability.

Economic sustainability means that businesses ensure their long-term growth while also preserving natural resources and fulfilling their environmental responsibilities. When applied correctly, economic sustainability bridges environmental protection and financial success.

The Concept of Economic Sustainability

Economic sustainability means a business's ability to maintain its economic activities while minimizing its environmental footprint and preserving natural resources. This concept also includes energy and water efficiency, waste reduction, and limiting carbon emissions.

In the modern business world, consumers and stakeholders expect companies not only to focus on financial success but also to fulfill their environmental and social responsibilities.

A business's economic sustainability both enhances its financial success and allows it to respond more effectively to its environmental responsibilities. This balanced approach can also increase the company's competitive advantage.

Economic Indicators Highlighted in Reporting

During economic sustainability reporting, it is necessary to focus on certain economic indicators while considering environmental impacts:

• Energy and Water Savings: This shows how efficiently the business uses energy and water. It also measures the economic return of energy and water-saving strategies.

• Carbon Emissions: This provides information about the size of the business's carbon footprint and its strategies for reducing this footprint. The economic cost of emissions and strategies on how to reduce this cost are also important.

• Waste Management: This provides critical information on how waste is reduced and managed. Waste management can help strike a balance between cost savings and environmental protection.

• Total Revenue: This indicates the overall financial performance of the business, but attention should be paid to how this revenue is affected by environmental sustainability practices.

Considering these indicators allows for a more transparent evaluation of the business's environmental and economic performance. This reporting builds trust among stakeholders, while also helping businesses better see the path they are following regarding sustainability. Because a sustainable business model signifies both financial success and environmental responsibility.

Finally…

Sustainability brings many advantages, not only environmentally but also economically. By directly integrating the economic performance of businesses with environmental sustainability practices, it is possible for them to achieve both financial success and the preservation of natural resources. This balanced approach increases the value of businesses in the eyes of both consumers and other stakeholders.

However, at the start of this journey, correct guidance and a support mechanism are needed. As Carbon Gate, we are here to ensure that businesses access accurate information in their sustainability reporting processes and use this information effectively. You can benefit from the expertise and experience of Carbon Gate to maximize the advantages that economic sustainability and reporting will bring.

Contact Carbon Gate to learn how you can be more effective in your sustainability reporting process! Request a demo now and step into a sustainable future!