ESG and Sustainability Reporting: An Overview

Sustainability is becoming an increasingly prominent topic in discussions among companies and governments. Like many buzzwords, however, "sustainability" risks being overused, sometimes losing its true meaning. Officially, sustainability refers to "meeting the needs of the present generation without compromising the ability of future generations to meet their own needs." This calls for greater awareness of the consequences of our actions, as well as a push for change—sometimes radical—that challenges many long-standing decisions and processes.

The environmental aspect has been widely discussed and is arguably the least contentious, but when it comes to the social dimensions of sustainability, the debates are far from settled. Let’s take a step back—what are the three key pillars of sustainability?

- Environmental sustainability: This focuses on preserving the Earth and its resources. The relentless production of recent centuries has made it clear that clean air and water are no longer guaranteed, raising concerns about the future. Environmental sustainability encompasses a wide range of goals, from reducing plastic production to fostering a circular economy, all aimed at preserving ecosystems and ensuring their balance.

- Social sustainability: This pillar is about ensuring security, equality, and equal opportunities for everyone, regardless of their circumstances or characteristics. It’s about allowing individuals to express themselves, protect themselves, and assert themselves, free from discrimination or exclusion.

- Economic sustainability: This is where environmental and social goals converge. Sustainable resources and reduced social inequalities are key to achieving a more equitable economy, where everyone can live a dignified life without deprivation.

Social Sustainability and Digital Accessibility

Understanding these three pillars highlights how digital accessibility plays a critical role in advancing both environmental and social sustainability. Digital accessibility allows people to access services without needing physical travel or paper—sustainable behaviors in themselves. Furthermore, for many, the digital space is the only way to independently access essential services without relying on others. For example, submitting a form online eliminates the need for a person with physical or visual disabilities to travel to an office, representing a significant contribution to social sustainability.

Legislation Driving Sustainability Goals

For businesses, the key impact of sustainability is its measurement. Companies are increasingly expected to provide transparent, measurable information about the actions they’ve taken—and plan to take—on sustainability. This is documented in the sustainability report.

In Europe, the Corporate Sustainability Reporting Directive (CSRD) (Directive 2022/2464) regulates this reporting. Companies with at least 250 employees and a net revenue of 50 million euros or more are required to produce sustainability reports. Over time, the scope will broaden to include companies with 11-250 employees and net revenues exceeding 900,000 euros. These reports must cover actions related to environmental, social, and governance (ESG) matters, and detail the internal controls verifying their contents. The EU has provided reporting templates to assist companies in preparing these reports, with simplified versions forthcoming for small and medium-sized enterprises (SMEs).

In Conclusion

Sustainability goals touch on many aspects of our lives, particularly within the economic and productive sectors. In the Western world, businesses play a crucial role in spreading values and directly impacting broad and complex issues such as the environment, economy, and social well-being. While environmental impacts, like reduced emissions, are relatively easy to measure, the real challenge ahead lies in measuring social initiatives. Since these initiatives deal with people and their well-being, many variables come into play, and simply using impact indicators will not be enough to assess the true value of these efforts. It’s likely that new measurement models will emerge, taking into account not just numerical data but also other less quantifiable factors.

Dajana Gioffrè

Chief Visionary Officer AccessiWay