Sustainability Report: what it is, importance, and how to do it

The Sustainability Report is a document that brings together the main information related to a company's: environmental, social, and corporate governance (ESG) aspects. It is one of the main tools for disclosing ESG goals, results, and indicators, tied to corporate performance and strategy.

Through it, large companies share the organization's progress and main events of the previous year, ensuring transparency for all their stakeholders.

But do you actually know what the importance of this document is? Continue reading to understand more.

What is a Sustainability Report?

A Sustainability Report (also referred to as an ESG report in many contexts) consolidates ESG initiatives, commitments, risks, policies, and results over a defined period, usually annually.

It is not just an institutional piece: when well-structured, it acts as a data-driven accountability tool, providing context and direction for the next cycle.​

You may also be interested in: What is the difference between sustainability and sustainable development?

What is the purpose of a Sustainability Report?

It serves to communicate how the company operates and what environmental and social impacts it generates, in addition to highlighting how governance underpins long-term decisions and goals.

It also helps stakeholders understand what was prioritized during the period, which results were achieved, and which challenges remain open, with forecasts and next steps where applicable.​

What is the objective of a Sustainability Report?

The objective is to present the company's pillars, its business model, its ESG performance, and the fulfillment of goals, usually supported by market-recognized reporting frameworks.

Additionally, the report makes it possible to measure results, record relevant facts, and create a comparable baseline to evolve the ESG agenda year after year.

What is the importance of the Sustainability Report?

The Sustainability Report holds great relevance for the company and its internal and external stakeholders, as it reports the main results of decision-making, reinforcing its transparency and reliability.

Within its content, the topics that deserve the most attention are:

• Detailed Business Model, with emphasis on inputs, business fronts, and the company's results;

• Presentation of financial and operational performance, featuring explanations regarding the year's most relevant events and forecasts for upcoming cycles;

• Detailed disclosure of progress and the next steps of the ESG Journey.

These and other aspects make it easier to understand a company's profile and strategic planning, clearly demonstrating its purpose and corporate sustainability.

Who is interested in the Sustainability Report?

The Sustainability Report is relevant to all stakeholders because it provides visibility into operational results and how the company positions itself on issues that impact business and society.​

Among the most interested audiences are investors (by supporting decisions based on risk, strategy, and performance) and internal teams (by engaging people in purpose and goals).​

Does the report help investors?

Yes. Investors typically use the content to understand strategies regarding issues such as climate change, as well as operational results and period highlights that may influence decisions.​

When the report is consistent over time, it also improves comparability and risk assessment, reducing the "gray area" regarding priorities and execution.​

Does the report help engage employees?

Yes. Internally, the report can be a tool for aligning guidelines, achievements, and next steps, helping teams see how their work connects to corporate goals.​

By bringing goals and results, it supports a culture of clarity and accountability, going beyond rhetoric and showing evidence.​

Are the Sustainability Report and Integrated Reporting the same thing?

Not exactly, Integrated Reporting tends to emphasize the connectivity between strategy, performance, and value creation, and may draw on guidelines and frameworks used in corporate reports.​ In practice, many companies combine approaches and standards to increase the consistency, organization, and reliability of what is reported.

How to create a Sustainability Report? Step by step

The preparation of a robust document generally involves three fronts: content creation/writing, data and indicator collection, and visual development/layout aligned with the brand.​ To turn this into an executable project, follow this roadmap:

1) Define scope, period, and audiences

Delimit the reporting period, included units and operations, and which stakeholders you need to serve with the document.​ This definition prevents rework and helps decide the level of depth for topics and indicators.​

2) Structure project governance (who does what)

Organize those responsible for topics and data, define the validation flow, and establish collection and review deadlines before final drafting.​ Clear governance improves consistency and reduces the risk of "parallel versions" and conflicting numbers.​

3) Conduct a materiality analysis

Materiality helps prioritize what is truly relevant, giving focus to the report and aligning stakeholder expectations with strategy and execution.​ Without this scoping, the document tends to become overly broad and of little use to those who need to understand priorities.​

4) Collect data and methodically consolidate ESG indicators

Standardize sources, criteria, and calculation methodology, recording assumptions to ensure traceability and consistency between cycles.​ This organization also paves the way should the company choose third-party verification.​

5) Write with balance: progress, challenges, and next steps

Reliable reports combine achievements and limitations, using clear language and a focus on evidence, rather than just aspirational narratives.​ This balance tends to strengthen trust and reduce noise regarding the seriousness of the ESG commitment.​

How to avoid greenwashing in the Sustainability Report?

Greenwashing is a risk when there is strong rhetoric and weak evidence, or when the content shows only the positive side and omits relevant trade-offs and challenges.​
To reduce this risk, prioritize methods (clear criteria), data (indicators), and transparency (boundaries, scope, and learnings).​

Why do we call Serena's report an Integrated Sustainability Report?

Serena's Sustainability Report came to be called the "2022 Integrated Sustainability Report" as it follows not only standards such as GRI, but also guidelines and frameworks associated with integrated reporting and SASB, in addition to including assurance auditing.

This type of decision tends to strengthen the organization and reliability of reporting by increasing traceability and disclosure discipline.​

The 2022 Integrated Sustainability Report also presents the Decarbonization Plan and initiatives connected to the ESG agenda and the SDGs, as well as impact and measurement projects.​ Read the full version of our Integrated Sustainability Report.