Synopsis on

A study on sustainability reporting management standards.

Submitted to:
Sapna A. Narula, Ph.D. Associate Professor, Deptt. Of Business Sustainability Faculty of Policy and Planning TERI University

Submitted by:
AnuragChauhan Aditya Shah Dhiraj Sharma Tanvir S Juneja

Rationale and Background

In a world where ecological calamities, environmental pollution and the ongoing climate change are part of the daily news, a worldwide rethinking has begun. This puts pressure on companies to account for the impact of their business and actions on the environment, society and economy. Therefore many companies started to publish sustainability reports in recent years. A sustainability report is an organizational report that gives information about economic, environmental, social and governance performance. Sustainability reporting has a long history going back to environmental reporting. The first environmental reports were published in the late 1980s by companies in the chemical industry which had serious image problems. The other group of early reporters was a group of committed small and medium-sized businesses with very advanced environmental management systems. Organizations can improve their sustainability performance by measuring, monitoring and reporting on it, helping them have a positive impact on society, the economy, and a sustainable future. The largest database of corporate sustainability reports can be found on the website of the United Nations Global Compact initiative. As a sustainably developed company that reports its progress can increase its industry credibility through leadership by example and reputational enhancement. The very act of communication to stakeholders further strengthens relationships, claries company objectives, and articulates the mode of operations. Reporting sustainable development practices is likewise important as it imputes and otherwise fosters a number of tangible and intangible benets. Improved utilization of company assets, innovation of technologies, and greater appeal to socially responsible investors are among the top tangible benets. Intangible benets vary across companies but can be just as, or even more advantageous.

Objective
In this study we try to assess which companies are undergoing sustainability reporting and in which manner.The best reports provide information on how the sustainabilityreport relates to other company reporting initiatives (e.g. financial statements). They also give trend line data presenting current information in the context of past data.

Scope of study
This study aims to assess the variety of approaches employed by the companies, of which most are a hybrid of learning curve, Anecdotal (little data), EMS/ISO 14001, CERES/GRIguidelines(triple bottom line), integrated reports and innovative reports. Since companies have different ways of sustainability reporting, we will also compare the reports of companies using same approach for sustainability reporting.

Research Methodology

The reports of the businesses are going to be studied intimately, and can be used as a tool to work out the priorities of the corporate with relevance property.The questions will be framed focusing on the various aspects of sustainability as given by the Global Reporting Initiative, SEBI and also the basic principles underlined by The United Nations Global Compact. Most reports don't indicate however data was collected. Others give an overview of however management, totally different divisions and individual units all contributed to the report.

Significance
The importance of a transparent and qualitative reporting practice becomes evident by looking at a survey from Sustainability, KPMG and GRI. The survey stated that 90% of the readers changed their view on the company after reading the report and 85% of them to a more positive one. In addition, the reading of reports helped the reader to decide which products to buy, with which companies to start a relationship or to make an investment in. Thus, reporting can improve the competitiveness and therefore have positive effects for the company.