This three-part series takes a look into the 1. Why 2. What and 3. How of ESG reporting for Not-for-Profit organisations.
Environmental, Social, and Governance (ESG) Reports, also commonly known as Sustainability Reports, Environmental Impact Reports or Climate Action Reports have gained increasing global traction in recent years. ESG reporting has become an important aspect for embedding and communicating an organisation's sustainability efforts to broader stakeholder groups.
Whilst traditionally associated with corporations, Charities and Social Impact Organisations (Not-for-Profits) are increasingly adopting ESG reporting as a means to enhance transparency, accountability, and impact measurement. This article delves into the "what" of ESG reporting for Not-for-Profits, providing practical examples to illustrate its benefits.
We have reviewed nine Not-for-Profit organisations across Singapore, India, Australia, UK and USA to identify the most commonly disclosed material issues in their reports.
Box Story #1: Save the Children Sustainability Report
The Save the Children Association are one of the world’s leading independent child rights organisations with operations in 115 countries. While primarily focusing on the social pillar of ESG, Save the Children have also featured Greenhouse Gas (GHG) Emissions disclosures in its report.
Calculating and disclosing GHG emissions data
With climate change adaption and mitigation at the forefront of sustainability, Save the Children goes above and beyond in disclosing it’s Scope 1 (direct emissions), Scope 2 (indirect emissions, and Scope 3 (value chain emissions) in its sustainability report, as seen below.
Box Story #2: Olive Tree Estates Sustainability Report
In 2023, Olive Tree Estates became the first listed company in Singapore to be certified as a B Corp. A Singapore real estate company specialising in property development and investments, the company seeks to provide quality affordable housing for the masses in emerging markets, with its principal activities currently in Vietnam.
Adopting internationally recognised reporting standards
Olive Tree Estates has reported with reference to the Global Reporting Initiative (GRI) Standards and SDGs. The purpose of adopting such standards is to provide a clear and concise structure for communicating sustainability-related information.
Olive Tree Estates provides a Board Statement which communicates buy-in from the top of the organisation and enhances the overall credibility of the organisation’s report. The inclusion of a GRI Content Index also highlights the disclosures the organisation reports against, and allows for fair comparability and more detailed assessments by stakeholders.
Identifying and disclosing its list of material topics
The purpose of a materiality assessment is to help socially conscious organisations and Not-for-Profits tackle ESG issues more effectively, focusing its resources on areas with the most significant positive impact.
Olive Tree Estates has identified and prioritised its list of material topics based on its sustainability strategy and mapping to the SDGs. In its sustainability report, Olive Tree Estates provides the rationale for why each of these environmental, social, and governance topics are material, and what they are doing to manage it, including–
· Policies and practices;
· Implementation plans, and
· Performance measures
The growing trend of ESG reporting among Not-for-Profits signifies a pivotal shift towards greater responsibility and sustainability in the sector. As these organizations navigate an increasingly complex landscape of stakeholder expectations and social responsibility demands, robust ESG reporting will serve as a vital tool for demonstrating impact and securing future support. The journey towards effective ESG integration is not just about compliance; it is about creating a lasting positive impact on society and the environment.
