A call for urgent action
Sustainability is now top of the regulatory agenda. Every business needs to understand the implications and what it means for their organization. Marketing teams will play a key role and should be ready for the environmental impact of marketing activities. New corporate sustainability reporting regulations require accountability and transparency. With this comes the challenge of measurement, as well as new opportunities to embrace good sustainable marketing practices.
A transformative moment
Environmental, social, and governance (ESG) reporting is no longer optional for companies publicly listed or quoted with annual turnovers exceeding $600m or with more than 500 employees. Sustainability metrics are integral to annual reporting, providing transparency and accountability for consumers and socially responsible investors, all designed to promote a more sustainable future.
The European Union has introduced a Corporate Sustainability Reporting Directive (CSRD). This directive establishes detailed reporting requirements for EU companies, non-EU companies meeting certain thresholds for net turnover in the EU and companies with securities listed on regulated EU markets. Since its enforcement on 5 January 2023 the CSRD is being phased in gradually – until it encompasses all applicable companies by 1 January 2028.
Embrace the future
HH Global is setting an example by creating several forward-thinking strategies.
1. Sustainability performance assessment: We are proactively evaluating marketing sustainability credentials across environmental, social and governance dimensions for ourselves, our clients and our suppliers. This includes identifying areas for improvement and implementing initiatives aligned with corporate ESG reporting requirements and stakeholder expectations, and collaboratively taking the first step towards improving the quality of company data to kick-start progress.
2. Robust tool measurement: We have established systems to collect and analyze ESG reporting data across all marketing activities, incorporating relevant key performance indicators aligned with CSRD guidelines. By doing this we are enabling more informed and effective strategic decisions.
3. Stakeholder engagement: We are driving open dialogue by discussing sustainability performance with our clients and suppliers in line with corporate sustainability reporting standards to foster a joint sense of accountability. We review actions and outcomes to build resilient, trusting partnerships and achieve shared goals.
4. Sustainable innovation: We are actively encouraging innovation around the use of sustainable products, services and business models. By integrating circular economy principles, we are helping to reduce environmental impacts and addressing social challenges to unlock more sustainable marketing opportunities.
5. Collaboration and learning: By coming together as one team with a shared purpose we are exchanging knowledge and best practices around ESG, audit and reporting with peers, sustainability experts and networks. Effective collaboration helps us navigate regulatory frameworks and identifies opportunities for improvement to adopt best practices in sustainable marketing.
This is the time to prepare to meet sustainability directives and recognize the opportunities presented by mandatory climate reporting. By preparing to apply ESG reporting metrics to your marketing activities now and aligning them with the CSRD, you will not only be ready for the new compliance regime but will build stakeholder and investor confidence and be ready to drive sustainable marketing success.
Harness the power of positive change
Discover a comprehensive range of resources and services designed to help your business meet sustainability regulations at www.hhglobal.com/sustainable-growth. Together, we can inspire meaningful change and make a positive impact on our future.
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