Sustainability Disclosure
Within a few years, companies may have to report on sustainability in their annual report
Sustainability disclosure involves how we communicate the information we are collecting about sustainability factors and specifies the goals and policies set regarding, among other things, carbon footprint, energy consumption, and human resources policy, says Snjólaug Ólafsdóttir, Head of Sustainability Advisory at Ernst & Young.
She says the information is useful for stakeholders such as investors, employees, and people who intend to apply for a job at the company in question. This provides a clearer picture of what companies are doing in terms of sustainability and what future goals they have set for themselves.
In the future, companies will need to report on the status of their sustainability efforts in their annual reports, but Snjólaug says that is still a few years away.
Therefore, it is high time to start now and review the situation with the value chain in mind, as companies might need to switch suppliers if their status does not align with the company's goals.
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