Who Reads Your Sustainability Report?

In recent years, sustainability reports have become fundamental tools for organizations seeking to communicate their environmental, social, and governance (ESG) performance. Investors, customers, regulators, and other stakeholders scrutinize these reports to gauge companies' ethical footprint, transparency, and long-term viability. But as these reports grow in popularity, it’s worth examining how consumers of sustainability information engage with these documents. What do they look for? How do they interpret the findings, and how does the information inform their actions or decisions?

To answer these questions, we need to consider the diversity of sustainability report consumers and their varying levels of familiarity with sustainability concepts and frameworks. Importantly, we should question whether readers might benefit from “educational guidance” to make the most of the insights offered. Without a clear understanding, there is a risk that critical information could be overlooked, misinterpreted, or even underutilized.

What Are Readers Looking for in Sustainability Reports?

1. Credibility and Transparency One of the first considerations for readers is the report’s credibility. With greenwashing a concern, they want clear, honest disclosures and third-party assurances where available. They look for transparency in the data, the methodology used, and the level of alignment with recognized standards, such as the Global Reporting Initiative (GRI) or Task Force on Climate-related Financial Disclosures (TCFD).
2. Measurable Impact and Comparability Impactful data is essential for stakeholders who want concrete numbers and facts that go beyond general statements. Whether it’s the reduction in carbon emissions, the increase in renewable energy use, or community engagement metrics, readers want to see measurable, comparable data points. Investors, for instance, might compare a company’s year-on-year emissions reductions against those of its industry peers to assess the organization’s commitment and progress toward net-zero goals.
3. Materiality and Relevance Consumers of sustainability reports often look for relevance—are the issues covered material to the company’s industry and stakeholders? For example, a technology company may prioritize digital carbon footprints, while a manufacturing firm might focus more on water usage and waste management. Well-organized and topic-specific reports help readers quickly identify which areas are of particular importance to the organization’s operations and supply chain.
4. Commitment to Long-Term Goals Readers also want to know about an organization’s forward-looking commitments. Are there long-term goals related to net-zero emissions, diversity and inclusion, or community investment? The presence of clear, achievable goals is often seen as a testament to the organization’s commitment to sustainability and helps readers predict future performance and risk mitigation.

How Do Readers Use Sustainability Information?

The way consumers use sustainability reports varies based on their role and level of involvement with the organization.

• Investors use sustainability reports to assess risks and opportunities within their portfolios. ESG metrics increasingly influence investment decisions, especially as regulatory pressure grows. By understanding a company’s sustainability practices, investors can make better-informed choices that align with their values and risk tolerance.
• Customers may examine a company’s sustainability report to verify claims about ethical practices. Many customers make purchasing decisions based on whether the company aligns with their own values on social and environmental responsibility.
• Employees and prospective talent use these reports to evaluate a company’s alignment with their personal values and to assess workplace practices, such as diversity, health and safety, and environmental stewardship. A well-documented sustainability strategy can influence an employee’s sense of pride and loyalty to their employer.
• Regulators and non-governmental organizations (NGOs) may scrutinize sustainability reports for compliance purposes or as part of a larger advocacy mission, assessing whether companies are meeting regulatory standards or following through on commitments.

Bridging the Gap: An Educational Approach for Report Readers

While many organizations put considerable effort into creating thorough, detailed sustainability reports, the assumption that readers will know how to interpret and act upon this data may not always hold true. For many stakeholders, sustainability reporting is a relatively new concept, and the rapid evolution of reporting standards can make it challenging to keep up.

Is there a need to “teach” readers how to approach and interpret these reports? Increasingly, the answer seems to be yes. Readers may benefit from an educational approach that enhances their ability to discern essential insights, understand industry-specific terminology, and make well-informed decisions. A few potential solutions could include:

1. Simplified Summaries and Guides Providing an executive summary or a glossary of terms could be immensely helpful, especially for readers less familiar with sustainability jargon. Breaking down complex concepts in plain language ensures the content is accessible to a broader audience.
2. Interactive and Visual Content Readers often benefit from visual aids—charts, infographics, and interactive tools can make it easier to understand complex data. Additionally, educational videos or webinars hosted alongside the report could guide readers on how to interpret the content and apply the insights effectively.
3. Case Studies and Practical Applications Including case studies that show how the company’s sustainability initiatives directly impact communities or environmental metrics could make the report more relatable. Practical examples can bridge the gap between high-level metrics and real-world impact.
4. Guidance for Key Audiences Organizations might consider offering tailored guidance within the report for different types of readers—investors, employees, customers, and regulators—outlining how each group can best use the information presented. For example, investors might receive an analysis of the long-term financial implications of sustainability initiatives, while customers could be directed toward specific sections that detail ethical sourcing practices.
5. Educational Campaigns Beyond the report itself, organizations could run educational campaigns about sustainability reporting, explaining its importance and how to interpret it. These initiatives could include online tutorials, workshops, or even collaborations with academic institutions to raise awareness and increase literacy around ESG topics.

From Awareness to Action

As sustainability reporting becomes more widespread, simply making information available is not enough. If we want these reports to lead to meaningful change, there must be a concerted effort to ensure that readers not only understand the information but also feel empowered to act upon it. By focusing on how to "teach" readers to assimilate the data, organizations can enhance the report's impact, enabling stakeholders to make informed, purposeful decisions that support sustainability.

To achieve this, a shift in perspective is needed: sustainability reports should not just be viewed as a regulatory compliance exercise but as a tool for education and empowerment. By bridging the knowledge gap, we can help readers make more informed, values-driven decisions, ultimately creating a ripple effect that benefits both the organization and society.

About the Author: Omar Hadjel, MCIM, is a seasoned sustainability consultant, bid support specialist, and certified expert in social value and ESG reporting. With extensive experience helping organisations navigate the complexities of sustainability reporting and public sector procurement, Omar provides strategic insights that bridge compliance and impactful action. Passionate about promoting transparency and ethical business practices, Omar has authored numerous thought leadership pieces on sustainability, supporting businesses in aligning their operations with global environmental and social standards. He is dedicated to guiding organisations on their journey toward sustainable growth and creating lasting positive change.