From the onset of the 1980s, sustainability reporting emerged as a scattered concept. But with the arrival of the 2000s, sustainability reporting renewed with vigor. Then in 2004, the term ESG was popularized in a report titled, “Who Cares Wins”, a collaboration of financial institutions at the invitation of the UN.
From 1980s till the 2000’s, we witness the rise of conscious effort by nations and businesses alike to build sustainable business practices that push human developments while safeguarding the planet. With time, sustainability and ESG reporting emerged which meant enterprises must report on their non-financial activities.
But with growing policies and changes, these concepts became more comprehensive, and several distinctions arose. For those who are new to this race, these phrases may seem interchangeable. However, they are distinct from one another.
This blog aims to clarify the distinction, share facts, and highlight their importance so that organizations can ultimately decide – what suits their requirements. Let’s dive in.
Sustainability and ESG reporting: Definitions and its importance
Now that we understood the definition and importance, let us focus the difference between the two reporting concepts.
ESG vs. Sustainability: Three Differences
Here is a tabulated version of the key difference between sustainability reporting and ESG reporting.
While these differences are minute, their impact upon a company’s performance is immense. Both sustainability and ESG reporting have their strengths and weaknesses and it is upon an enterprise’s focus that depends on which reporting measure they should choose.
