Bridging the Confidence Gap: Enhancing Trust in Sustainability Reporting

Sustainability reporting reflects a company's commitment to environmental, social and governance (ESG) principles. We recognize that people juggling the desire to do good and be responsible while growing shareholder returns are doing their best to integrate ESG as a critical component of corporate strategy. To foster trust and support impactful sustainability efforts, we recommend companies consider the following methods to enhance the credibility of their reporting.

Adopt standardized frameworks

Utilizing established reporting frameworks such as the International Financial Reporting Standards (IFRS) S1 and S2, the Global Reporting Initiative (GRI), or the U.N.’s Sustainable Development Goals provide a consistent and transparent basis for sustainability reporting. Reporting to the Carbon Disclosure Project (CDP) or submitting carbon reduction goals to the Science Based Target Initiative (SBTi) can help companies compare what their peers are doing and validate their strategies. Submitting to industry-specific benchmarks such as GRESB for companies with assets is often a helpful additional option for companies to consider because each industry has unique considerations and guidance. These frameworks offer clear guidelines and metrics, making it easier for stakeholders to assess and compare ESG performance.

Third-party assurance

Engaging independent third-party assurance providers can significantly enhance the credibility of sustainability reports. These providers can verify the accuracy and completeness of the reported data, helping to meet rigorous standards of reliability and transparency.

Set realistic and achievable goals

Companies should set sustainability goals that are both ambitious and achievable. This involves conducting thorough assessments to understand the feasibility of targets and developing clear, actionable plans to achieve them. Regular progress updates and transparent communication about challenges and adjustments can also help maintain stakeholder trust.

Enhance data management

Investing in robust data management systems is crucial for supporting the integrity of sustainability data. This includes implementing advanced data collection, analysis, and reporting tools, as well as establishing strong internal controls and governance practices.

Engage stakeholders

Building trust requires ongoing stakeholder engagement, including investors, employees, customers and communities. Companies should actively seek stakeholder input and feedback and demonstrate how this feedback is incorporated into their sustainability strategies and reporting.

The role of ESG Advisory and Assurance Services 

To effectively implement these strategies, companies can benefit from the expertise of specialized ESG Advisory and Assurance Services from UL Solutions. We offer comprehensive ESG management services that can help organizations navigate the complexities of sustainability reporting and enhance their credibility. 

UL Solutions' ESG Advisory and Assurance Services provide tailored support in several key areas:

ESG strategy development

UL Solutions helps companies develop robust ESG strategies that align with their business objectives and stakeholder expectations. This includes setting realistic goals, identifying key performance indicators and creating actionable plans to achieve them.

Data management and reporting

UL Solutions offers advanced data management services to help increase the accuracy and reliability of sustainability data. Services include data collection, analysis, and reporting, as well as the implementation of strong internal controls and governance practices.

Third-party assurance

UL Solutions provides independent assurance services to verify the accuracy and completeness of sustainability reports. Third-party assurance processes help build stakeholder trust and enhance the credibility of reported data.

Stakeholder engagement

UL Solutions supports companies in engaging with stakeholders and incorporating their feedback into sustainability strategies and reporting. This includes facilitating stakeholder consultations, conducting materiality assessments and developing transparent communication plans.