Seven tips to strengthening sustainability reporting
In today’s fast-evolving ESG landscape, sustainability reporting is vital for compliance, showcasing progress and strengthening stakeholder trust. Cilia Keser, Managing Partner at Nexio Projects, shares seven tips for sustainability reporting.
1. Start with Double Materiality
The foundation of a credible sustainability report is a robust materiality assessment. Until now, companies typically relied on either financial materiality – focusing on how sustainability issues affect the business – or impact materiality, which considers the organisation’s effects on people and the planet.
Under the CSRD, however, the norm is shifting toward a double materiality approach, which combines both perspectives. This dual lens ensures your report addresses what matters most to both your company and wider society.
A well-executed materiality assessment starts with understanding the broader ecosystem your organisation operates in. Engage a broad range of stakeholders – employees, suppliers, customers, investors, and communities – to identify and prioritise the most significant ESG issues. Materiality is not static; it should be revisited regularly as risks, regulations, and stakeholder expectations evolve.
Ørsted’s 2024 Annual Report presents a clear and effective Double Materiality Assessment (DMA), visualising material topics along the company’s entire value chain and consistently linking these outcomes to relevant disclosures. Their approach includes a detailed mapping of impacts, risks, and opportunities (IROs) across upstream, own operations, and downstream activities, using visual tools that make the distribution of each material topic easily understandable.
Notably, Ørsted reiterates in each topical standard section which IROs are most relevant within each part of the value chain, ensuring that the connection between the DMA findings and the required disclosures is always explicit. This method not only enhances transparency but also demonstrates how materiality outcomes directly inform sustainability reporting, making Ørsted’s approach a strong example of best practice in reporting aligned with CSRD reporting requirements.
2. Integrate sustainability and financial reporting
Gone are the days of the standalone sustainability report. Today’s leading companies weave ESG disclosures into their annual reports, demonstrating how sustainability strategy is central to business strategy and long-term value creation. This integration is not just about compliance-it’s about showing how your sustainability efforts drive business resilience and opportunity.
For instance, Danish logistics leader Maersk’s latest integrated annual report exemplifies this approach. By aligning climate targets, supply chain decarbonisation, and workforce initiatives directly with financial performance, Maersk provides stakeholders with a holistic view of risk, opportunity, and progress. Their report is digitally tagged, assured by a third party, and includes both achievements and ongoing challenges, setting a high bar for transparency.
3. Prioritise data quality and assurance
With regulatory scrutiny shifting, the accuracy and reliability of your data are paramount. Invest in robust ESG data management systems that enable automated data collection, validation, and reporting. Ensure your disclosures are audit-ready and seek independent assurance to build credibility and trust.
Be transparent about your methodologies, data sources, and any limitations. Stakeholders are increasingly wary of greenwashing, making it essential to acknowledge both successes and areas where improvement is needed.
4. Tell a clear, honest story
While data is crucial, narrative matters too. Use your report to explain your sustainability journey-why you’ve set certain goals, the challenges you face, and how you’re adapting to new risks and opportunities. Avoid jargon and overly technical language; instead, focus on clarity and accessibility.
Balance ambition with realism. Stakeholders appreciate honesty about setbacks and the steps you’re taking to address them. For example, if supply chain disruptions have temporarily increased your emissions, explain the context and outline your plan for getting back on track.
5. Leverage technology and innovation
Digital tools are now essential for effective sustainability reporting. From carbon accounting platforms to AI-powered data analytics, technology can streamline data collection, enhance accuracy, and facilitate real-time reporting. Embrace digital reporting formats, such as XBRL, to meet regulatory requirements and make your data more accessible to analysts and investors.
6. Engage and educate stakeholders
A great sustainability report is more than a compliance document-it’s a tool for engagement. Use it to start conversations with employees, customers, investors, and communities. Provide clear calls to action, invite feedback, and show how stakeholder input shapes your strategy.
Internal engagement is equally important. Involve cross-functional teams in the reporting process and use the report as a catalyst for building a sustainability culture across the organisation.
Effective sustainability reporting relies on cross-functional collaboration, with each department playing a distinct role in contributing data, insights, and oversight across key ESG dimensions. An overview of what this looks like:
7. The power of marketing
Don’t underestimate the power of your marketing team in elevating your annual sustainability report. Beyond compliance, a compelling report is a communication tool that can drive engagement, shape perceptions, and spark action among stakeholders. Marketing professionals bring expertise in storytelling, branding, and-crucially-visual design.
By collaborating with them, you can transform complex ESG data into clear, visually engaging narratives that resonate with diverse audiences.
Effective use of visuals-such as infographics, clean charts, real-life photos, and interactive dashboards-makes your report not only more attractive but also easier to understand. Data visualisation is particularly powerful in sustainability reporting, as it translates intricate information on emissions, resource use, or social impact into accessible formats that reveal trends and progress at a glance.
For example, geographical maps can highlight supply chain risks, line graphs can show emissions reductions over time, and dashboards can provide a real-time overview of key sustainability metrics. These visual elements not only capture attention but also empower stakeholders to grasp material issues and make informed decisions.
Nike’s and Apple’s sustainability reports are prime examples, using authentic imagery and minimalistic charts to create emotional connection and clarity, while Dümmen Orange’s report enlivens governance sections with team photos, reinforcing transparency and trust. By integrating your marketing team early in the process, you ensure your report is not just compliant, but also compelling and memorable.
Conclusion
In 2025, ESG reporting is a gateway to stronger stakeholder trust, better risk management, and long-term business value. Companies that treat reporting as a strategic opportunity – not just a compliance exercise – will stand out in an increasingly crowded field.
By grounding a sustainability report in double materiality, integrating it with financial disclosures, prioritising data quality, and engaging stakeholders, companies can not only meet regulatory requirements, but also lead the way in sustainability reporting.
