In today’s transparent and competitive world, a sustainability statement is more than a corporate report — it’s a declaration of accountability and purpose. It shows how an organization measures, manages, and communicates its environmental, social, and governance (ESG) impacts, while proving its contribution to a sustainable future
What Is a Sustainability Statement and Why It Matters
A sustainability statement (also known as an ESG or non-financial report) is a formal document that presents a company’s environmental, social, and economic performance over a given period.
Unlike traditional financial reports, it focuses on ESG metrics — transparency, ethics, and long-term value creation.
Its main goal is to build trust with stakeholders — investors, employees, customers, and communities — by communicating real data, commitments, and outcomes.
How It Differs from Environmental Reports and Audits
While environmental compliance reports are mandatory and technical, a sustainability statement is voluntary, strategic, and holistic.
Audits check legal compliance; sustainability statements show how companies manage broader ESG impacts and drive continuous improvement.
Why It’s Essential for Reputation and Investment
A well-crafted sustainability statement boosts brand credibility, enhances investor confidence, and attracts ESG-driven capital.
In today’s market, sustainability reporting isn’t optional — it’s a differentiator for resilient, trustworthy companies.
Key Components of a Sustainability Statement
A solid sustainability statement follows a clear, verifiable structure:
- Executive Summary: vision, purpose, and key achievements.
- Corporate Profile & ESG Strategy: mission, governance, and business model.
- Materiality Analysis: identification of priority sustainability topics.
- Environmental Performance: carbon footprint, energy use, waste management, biodiversity.
- Social Performance: diversity, workplace safety, human rights, community impact.
- Governance & Ethics: transparency, anti-corruption policies, compliance.
- Future Goals: measurable sustainability objectives and progress tracking.
- Technical Appendices: data tables aligned with GRI or ESRS indicators.
Common ESG Indicators
Typical metrics include:
- Environmental: GHG emissions, energy intensity, water use, waste recycling rate.
- Social: employee turnover, gender equality index, training hours, community projects.
- Governance: board diversity, compliance rate, code of ethics adherence.
Types of Sustainability Statements (ESG, SDG, GRI)
Depending on framework and purpose, sustainability statements can take several forms:
- ESG Reports: Focus on Environmental, Social, and Governance performance — often investor-oriented.
- SDG Reports: Aligned with the United Nations Sustainable Development Goals, highlighting social and environmental impact.
- GRI Reports: Based on Global Reporting Initiative Standards, enabling international comparability.
- Integrated Reports: Combine financial and sustainability data for a holistic business view.
Main Frameworks and Standards (GRI, CSRD, SASB, TCFD)
To ensure credibility and comparability, organizations rely on globally recognized standards:
- GRI (Global Reporting Initiative): The most widely used sustainability reporting framework.
- CSRD (Corporate Sustainability Reporting Directive): The EU regulation requiring standardized sustainability reports.
- SASB (Sustainability Accounting Standards Board): Sector-specific metrics for financial relevance.
- TCFD (Task Force on Climate-related Financial Disclosures): Focused on climate risk and governance.
- ESRS (European Sustainability Reporting Standards): Implement double materiality assessment — impacts by and on the company.
What the CSRD Requires
The CSRD Directive obliges large and listed companies to publish audited sustainability statements annually.
By 2025, this will include companies with over 250 employees or €40M in annual revenue.
How to Apply GRI Standards
- Identify material topics.
- Select the relevant GRI indicators.
- Collect verifiable data.
- Report findings transparently with clear methodology.
Who Must Publish a Sustainability Statement
Reporting obligations vary by region:
- Europe: Mandatory under the CSRD for large and listed companies.
- North America: Increasingly adopted by public companies and financial institutions.
- Latin America: Gradual adoption through ESG and non-financial disclosure laws.
- Asia-Pacific: Rapid growth in voluntary ESG reporting among corporations.
How to Write a Sustainability Statement Step by Step
Follow this proven 7 step process:
Define Scope and Build the Project Team
Start by defining what will be reported and who will manage it.
Set the reporting period (annual or biannual), identify key departments (finance, HR, operations, communications), and assign roles.
Appoint a sustainability coordinator to ensure accuracy and consistency across data sources.
Identify Stakeholders
- Engagement is the foundation of credibility.
- Map out your stakeholders : employees, investors, customers, suppliers, NGOs, regulators — and assess their influence and expectations.
- Use surveys, interviews, and meetings to gather insights about key sustainability topics such as carbon reduction, diversity, and ethics.
- Document every step to include in the statement’s methodology section.
3.Conduct a Materiality Assessment
- A materiality assessment helps identify which ESG issues matter most to your stakeholders and to your business.
- Build a materiality matrix to visualize priorities and align resources accordingly.
- Under frameworks like GRI or CSRD, you must disclose why certain topics are included or excluded.
4. Select Indicators and Collect Reliable Data
For every key topic, define measurable Key Performance Indicators (KPIs). Examples include:
- CO₂ emissions (Scope 1, 2, and 3)
- Energy consumption per production unit
- Percentage of women in leadership roles
- Employee training hours per year
- Investment in social and environmental programs
Ensure your data is traceable, verifiable, and consistent with previous years. Maintain a data dictionary defining sources, calculation methods, and units.
5. Redactar el informe con enfoque técnico y narrativo
- Use the data to craft a coherent, transparent narrative.
- Structure the document with clear sections: company profile, governance, ESG performance, and goals.
- Include visuals and infographics to make complex data easy to digest.
- Maintain a professional tone that balances technical precision with accessibility.
6. Validate, Audit, and Obtain Executive Approval
Before publishing, conduct an internal review and, if possible, an external verification.
- Cross-check figures and claims.
- Ensure alignment with ESG frameworks.
- Get approval from the board or sustainability committee.
- Consider third-party assurance to enhance trust and domain authority.
This step boosts credibility and improves SEO rankings through higher user trust and backlinks.
7. Publish, Communicate, and Continuously Improve
Once approved, publish your sustainability statement in multiple formats (PDF, interactive web page, summary version).
Promote it across social media, press releases, newsletters, and sustainability networks.
Gather feedback and integrate lessons learned into the next report cycle — sustainability is a continuous journey.
Sustainability Statement Examples
Lidl Spain
Publishes annual GRI-aligned sustainability statements with metrics on plastic reduction, energy efficiency, and community initiatives.
Holcim Ecuador
Highlights achievements in circular economy, waste recycling, and community investment through its 2023 Sustainability Report.
Conclusion: The Value of a Great Sustainability Statement
A credible, data driven sustainability statement can:
- Strengthen brand reputation.
- Build trust with stakeholders.
- Attract responsible investment.
- Improve transparency and accountability.
In essence, it transforms sustainability from a promise into measurable progress.
FAQs About Sustainability Statements
What is a sustainability statement?
A corporate report detailing environmental, social, and governance performance.
Is it mandatory?
In the EU, yes — under the CSRD. In other regions, it’s voluntary but increasingly expected.
What frameworks are most used?
GRI, CSRD, SASB, and TCFD.
Why should my company publish one?
It builds investor confidence, meets stakeholder expectations, and enhances long-term brand value.
