Getting started with sustainability reporting: A practical guide
Whether you're responding to the new Australian Sustainability Reporting Standards (ASRS) – be it mandatorily through AASB S2, voluntarily through AASB S1, or another international standard, or simply meeting your ISO requirements – getting started can feel overwhelming. After years of working with and helping organisations navigate this process, I've learned that success often comes down to getting the fundamentals right from the start.
Getting the right support
Before diving into systems and tools, let's talk about people. One of the most crucial early decisions is whether you have sustainability expertise properly resourced. Having someone with experience can make the entire process significantly smoother. If a full-time position isn't feasible at this stage, consider dedicating 0.6 FTE or more to an existing role and supplementing the remaining FTE equivalent with a third-party. The expertise these will bring can help you avoid common pitfalls and set up systems that will serve you well into the future.
In-house resources, while slower to get started, will really provide dividends, especially if they develop standard operating procedures and processes so that the role can continue into perpetuity. While third-party resources will bring in a lot of expertise, no one will get to know your business better than your own internal sustainability team.
Data management
While there are many sophisticated tools available, don't let the perfect be the enemy of the good. In my experience, many successful organisations start with Microsoft Excel, and while it often gets a bad rap, it can be an effective tool when used appropriately. The key is understanding its limitations, particularly as your data volume grows. Tasks like identifying a price spike across thousands of data points can become time-consuming and frustrating, especially when dealing with potential human errors in data entry or formulas. Here are some basics I'd suggest to make Excel work effectively while minimizing risks:
Structure your data:
Create separate files for each reporting year
Use different tabs for each environmental aspect or utility source
Cite your emissions calculations or formulas so these are easily traceable
Lay out the calculations so that key metrics are easily accessible to C-suite and senior management
Maintain links to source documents uploaded into a cloud folder for traceability
For example, an electricity tab might include summary information for:
Monthly usage in kilowatt hours
Cost data
Peak and off-peak information
Direct links to invoice documents
Location-specific breakdowns
The key is maintaining clear organisation and ensuring traceability back to source documents. Nothing is worse than sitting with an auditor or explaining to senior management that you can't locate the supporting documentation for your reported figures.
When to consider software solutions
As your reporting matures, you might want to consider dedicated sustainability reporting software. There are excellent Software-as-a-Service (SaaS) providers available, including:
Arbor (for Product Carbon Footprints)
These platforms can provide:
Enhanced data security
Automated calculations
Built-in audit trails
Streamlined reporting features
There is also the option of creating bespoke reporting software. However, if reporting isn't your core business, avoid the temptation. I've seen organisations spend tens of thousands on bespoke solutions when an off-the-shelf product or well-structured Excel system would have served their needs perfectly well.
Verification and improvement
Once you've collected and calculated your initial dataset and completed a reporting cycle, consider these crucial next steps:
Independent review
Have someone else review your work, ideally someone with sustainability reporting experience. This could be:
A third-party contractor
An internal auditing expert from another department
A sustainability consultant
This fresh set of eyes can help identify potential issues before they become problems in an audit.
Professional development
Invest in training and education. Attend conferences, workshops, or formal training programs. The sustainability reporting landscape is constantly evolving, and staying informed is crucial for success.
Evaluate and iterate
After completing your first reporting cycle, take time to evaluate the process:
Document time commitments and resource requirements
Identify bottlenecks and inefficiencies
Note areas where additional support or tools might be beneficial
Consider whether your current approach will scale with your needs
The journey
Remember, sustainability reporting is a journey, not a destination. Start with systems that match your current needs and capabilities, but build them with enough flexibility to grow as your reporting requirements evolve.
Whether you're using Excel or a SaaS solution, the key elements remain the same:
Clear data organisation
Strong documentation
Reliable traceability
Regular verification
Build the internal capability
By focusing on these fundamentals, you can build a reporting system that not only meets your current needs but positions you well for future requirements.