Fiinovation Reviews Value of Sustainability Reporting In the Context of Indian Businesses of Today

1. Fiinovation Reviews Value of Sustainability Reporting In the Context of Indian Businesses of Today Fiinovation, Fiinovation Delhi

2. Sustainability Reporting, a key in enchancing brand value, effective communication with stakeholders & reputation building. • It is needless to mention that rapid changes in the global work environment are posing new challenges for the businesses around the world to look beyond financial performance, and to incorporate social concerns into their strategic management.

3. Fiinovation understands that, Companies therefore have started moving beyond Corporate Social Responsibility, as a philanthropic activity, and integrating it into their core business operations. • The National Voluntary Guidelines on the Social, Environmental and Economic Responsibilities of Business (NVGs) released by the Indian Ministry of Corporate Affairs in July 2011 highlight the need to incorporate sustainability & inclusiveness into core business practice. • Fiinovationhighlights the initiatives of the Government of India, such as the National Voluntary Guidelines, that shows commitment of government towards business responsibility, so businesses now need to demonstrate their seriousness in the implementation of the NVGs.

4. Fiinovation estimates that over 4000 companies around the world invest time & resources in producing sustainability reports. • One of the reasons for this is that external stakeholders, such as institutional investors, are asking for reporting and disclosure of nonfinancial performance indicators. • Other reasons include enhancing brand value, corporate reputation, and how much impact companies' have generated through CSR interventions etc.

5. Fiinovation reviews that sustainability reports, do not only provide a medium for communicating to investors, but nowadays customers are becoming aware about companies’ performance through the reports. • In the current scenario, a company’s environmental & social performance is therefore not of only strategic relevance but it also has reputational implications.

6. Fiinovation endorses the experts' view that sustainability reports helps in fostering investor confidence, trust and employee loyalty. • Fiinovation highlights a 2011 survey on corporate reputation found that expanding transparency and reporting positive deeds were the two most important ways to build public trust in business. • Another survey of Boston College Center for Corporate Citizenship and EY in 2013 revealed that over 50% of respondents unveiling sustainability reports reported that it helped in improving firm's reputation.

7. Fiinovation believes that for reporting to be useful, reporting mechanism need to be changed with changing business environment and global practices. • As firms worldwide have accepted sustainability reporting, the most widely adopted framework has been the Global Reporting Initiative (GRI) Sustainability Reporting Framework.

8. However, Fiinovation contemplates that there are still several challenges before companies to overcome while reporting when it comes to enchancing brand value and building reputation. • A suitable and credible reporting mechanism alligning the global frameworks and meeting national guidelines is imperative for social change.

9. Fiinovation believes that sustainability reporting is expected to rise in the years to come, resulting from the regulatory impetus and a belief among Indian businesses that sustainability is integral to business, society and the world we live in.

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