The world of sustainability, social value, and ESG never stays the same for long. We’re always seeing new legislation and government or global guidance moving the goalposts of what data needs to be disclosed and by whom.
It’s a lot to keep up with. And this is just the tip of the iceberg. You just need to look at the wide range of developments we’ve seen in recent years. All this new guidance and social value standards will be great for speeding up our progress towards global targets. And for helping organisations and industries become more transparent, sustainable, and impactful. But it can also leave us feeling like we’re always playing catch up.
So perhaps you’re an SME who’s avoided mandatory disclosures to date. Or are a larger organisation anticipating upcoming changes. Either way, we thought we’d share our advice for getting yourself prepared.
What we’ve seen so far
In January 2021, we saw social value become a requirement for all government contracts. And this was followed by NHS contracts this year. Also in 2021, the International Sustainability Standards Board (ISSB) was set up to create a baseline set of global social value standards. Earlier this year, they published their first two drafts – you can find them here and here.
Here in the UK, we also saw the release of the SDR timeline before COP26. It aligns with the Task Force on Climate-Related Financial Disclosures (TCFD) and is seeking to expand UK reporting to cover a fuller range of issues and more organisations.
We don’t see this influx of new requirements stopping any time soon. So what changes can you make today?
Start sooner rather than later
When it comes to mandatory reporting and disclosures, the sooner you can start, the better. And this often means setting the foundations before legislation even goes live. You don’t want to wait for mandates to be officially introduced to start making the necessary changes.
The earlier you start preparing for potential changes, the sooner you’ll adapt, and the less pressure you’ll face to meet strict deadlines. If you start early, by the time official mandates are introduced, you can already be in a position to meet all of the requirements.
You can’t know what’s going to be expected of you in the future. But you can do a lot of the foundational work to get yourself in the strongest possible position. Do your research into what’s on the horizon. Take time to figure out what disclosures are important and relevant for your organisation and industry. Engage with your supply chain to build a full picture of your impacts and scope for positive change. Do as much preparation as you can to make any transition to new legislation as simple and straightforward as possible.
Aim for quality over quantity
As your organisation produces more ESG, social value, and sustainability data, the more questions you’ll face. And the more transparent an organisation is about it, the more vulnerable they become to greenwashing claims or scepticism surrounding the validity of their disclosures. Especially in the early days of legislation where your progress might seem too good to be true.
A way to combat these doubts is to lead with quality first. While you’ve got the time before legislation kicks in, focus on creating a robust method for data collection and analysis.
Create reliable processes and controls to ensure your data is 100% accurate and above board. Develop a crystal-clear audit trail to remove any doubts from investors, customers, or stakeholders.
Invest in the right tools
The trick to adapting to ever-changing guidelines and legislation is to make compliance as unburdensome as possible. And this means investing in the right tools and systems.
Find tools that make complying with new legislation as efficient as possible. Work to identify areas where technology can simplify and streamline repetitive tasks, saving your business’s time and resources. Or places where flexible software can broaden your reporting capabilities by embracing other frameworks or values.
Simple, easy-to-use technology and tools can also develop the understanding and uptake of social value and sustainability across your organisation. And the more your people understand your data and reporting process, the easier it’ll be to get them on board.
There’s no predicting what social value standards are on the horizon. Just as you get to grips with one piece of legislation, five more will be announced in the pipeline. The trick is to start preparing now. Even if your organisation isn’t going to be included in this new round of mandates, it’s only a matter of time until they will be. So aligning yourself with national or global standards will be a worthy investment in your organisation’s future.
Impact allows your organisation to easily adapt to stricter reporting standards. As a framework-independent platform, you can effortlessly capture and manage all your social value, sustainability, and ESG data. To find out more, schedule a demo, or get in touch with the team on 0161 532 4752.