Socially and environmentally responsible reporting (SER)
Turning sustainable development into a competitive advantage
The NRE Act (law on new financial regulations), passed in 2001 in France, obliged listed companies to include data on their social and environmental performance in their annual reports. However, this law had several flaws which hindered implementation:
- No penalty for non-compliance;
- No monitoring system;
- No precise definition of the scope of application (holding or group/ multinational or national business)
Following the Grenelle II environmental consultation and the article 225 decree, firms will be obliged to compile annual reports which reflect how they take account of the social and environmental impacts of their activities, and also show their commitment to sustainable development in society, This decree is compulsory for the larger groups as from 2011.
How to turn a mandatory legal requirement into a sustainable competitive advantage?
We propose a systemic approach taking into account the company’s major stakes and ecosystem:
- From design to implementation of a dashboard and indicators which will form the basis for the company’s CSER reporting;
- Ongoing project monitoring of progress to ensure up-to-date dynamic reporting.
The CSER reporting policy then becomes an integral part of company strategy, and constitutes a competitive advantage and differentiator.
Instant return on investment in each of the following dimensions:
- Better evaluation, better rating;
- Improved image and reputation which reinforce “Goodwill”;
- Employee commitment, meaningful work, climate of trust;
- Easier buy-in to change processes and new projects;
- Enhanced status as a “Best place to work” ;
- Recognised as a responsible player;
- Improved acceptance of the company’s business activities.