According to a paper titled ‘Balancing spending with sustainability: How is consumer behaviour changing amid cost of living pressures and global warming?’, consumers are increasingly holding companies accountable for their responsible business practices.
It shared that 78 percent out of the 22,000 consumers surveyed said they want companies to play a more substantial role in securing a sustainable future. If your business is serious about sustainability, it needs a sustainability statement.
This formal declaration is critical for building trust, driving change, and accelerating sustainable development. With this in mind, it should be a priority that comes before your business even lays out its sustainability strategy. Below, we’ll explore what makes a strong sustainability statement and the steps to create one.
What is a sustainability statement?
A sustainability statement is a formal declaration by an organisation or business outlining its commitment to sustainability practices. It generally includes a company’s goals, values, and strategies related to environmental, social, and governance (ESG) issues. A sustainability statement highlights how a business aims to reduce its environmental footprint, contribute positively to society, and maintain ethical governance practices.
Key elements of an effective sustainability statement
A sustainability statement acts as a public-facing document that communicates the company’s efforts to stakeholders, customers, and the broader public. It highlights the company’s role in promoting sustainable development. With this in mind, an effective sustainability statement should include the following elements:
- Commitment to sustainability: Any effective sustainability statement should include a clear expression of the company’s dedication to responsible practices and sustainable business operations.
- Environmental objectives: It should also detail specific initiatives a company plans to implement to address its environmental impact. For example, strategies for reducing carbon emissions, minimising waste, and conserving resources.
- Social responsibility: An effective sustainability statement should share efforts to promote diversity, equity, and inclusion, as well as how the company plans to enhance employee well-being and engage with local communities.
- Governance: A good sustainability statement will emphasise how the business plans to implement ethical business practices, improve transparency, and master compliance.
- Future goals: Finally, an effective sustainability statement should include long-term goals and milestones the company strives to achieve. For example, if the business envisions becoming carbon neutral or curbing its reliance on non-renewable resources.
Steps to writing a sustainability statement
To write an effective sustainability statement, businesses should follow a structured approach that communicates their commitment to sustainability while setting measurable goals. Below are the six key steps to creating a compelling sustainability statement.
1. Assess current sustainability efforts
Start by reviewing your company’s current sustainability initiatives, from energy use to waste management, community engagement, and governance policies. From here, you’ll gain an understanding of where your company excels in sustainability and where there is room for improvement.
2. Define your core sustainability values
Clarify your company’s mission and values concerning sustainability. This can include environmental responsibility, ethical governance, or social impact. From here, align your mission and values with broader goals. For instance, consider how your company’s values can align with the UN Sustainable Development Goals (SDGs) or the Paris Agreement.
3. Set clear, measurable goals
Identify actionable sustainability goals like reducing carbon emissions by a certain percentage or achieving zero waste. Ensure the goals that you set are both measurable and time-bound too. You should clearly state what you aim to achieve and set a timeline for when it should be achieved.
4. Engage your stakeholders
Consult your internal and external stakeholders to ensure your sustainability statement reflects shared values and expectations. Involve your employees, customers, suppliers, and community partners. Following this, acknowledge any stakeholder concerns and highlight how your company is addressing them through sustainability initiatives.
5. Highlight key initiatives
Reference what your company is already doing to promote sustainability, from using renewable energy to sourcing responsibly and supporting local communities. In addition to this, explain how your company is addressing governance and social responsibility as well as environmental sustainability. Include concrete examples to demonstrate your progress and commitment, increasing the credibility of the statement.
6. Ensure clear language and make it realistic
When working on your sustainability statement, make sure you write in clear, concise language that is easy for a wide audience to understand. With this in mind, avoid using technical language or any jargon.
Moreover, this declaration must reflect your long-term vision for contributing to a sustainable future. Therefore, you must be transparent about any obstacles your company faces in its sustainability journey and how you plan to overcome them.
Final thoughts
A sustainability statement serves as a bridge between your company’s ambitions and the global need for sustainable development. By clearly articulating your goals and commitments, you signal to stakeholders that your business is ready to take meaningful action in addressing environmental, social, and governance challenges.
More than just a corporate responsibility, a well-crafted statement can inspire others in your industry to follow suit, fostering collaboration and innovation across sectors. In turn, this collective effort strengthens the global movement toward a more sustainable and equitable future, making your company a leader in driving positive change.
