How to Build a Reliable and Compliant Sustainability Report

Sustainability reporting has become, in recent years, one of the key tools for European companies wishing to demonstrate transparency, accountability, and a forward-looking vision. With the introduction of the Corporate Sustainability Reporting Directive (CSRD), the level of preparation required from companies has increased significantly.

For many organizations, especially SMEs, the path toward structured reporting is not straightforward. Data often resides in different business functions, the quality of information is uneven, and the lack of formalized processes can make it difficult to meet European standards (ESRS) and international frameworks such as the GRI Standards. This is why a complete and well-organized checklist becomes an essential tool.

In this article, we take an in-depth look at all the key elements of the ESG checklist, explaining why each piece of information is necessary and how it contributes to building a credible, auditable sustainability report that supports internal decision-making processes.

Environmental Area (E): Understanding and Measuring Real Impact

The environmental area represents the core of corporate impact measurement. ESRS standards—particularly ESRS E1, E2, E3, and E5—require companies to adopt a much higher level of detail than in the past.

The first fundamental element is monitoring energy consumption. Bills, consumption reports, energy mix data, and information on renewable energy usage help calculate Scope 2 carbon emissions and identify potential efficiency improvements.

Reporting CO₂ and other greenhouse gas emissions is another crucial step. The breakdown into Scope 1, 2, and 3 offers a complete view of the company’s contribution to climate change. Scope 3, in particular, requires constant dialogue with suppliers and value chain partners.

Data related to water consumption, withdrawals, discharge, and water quality are essential to understanding the company’s dependence on a critical resource. Industries such as manufacturing, agri-food, and textiles rely heavily on water, making accurate monitoring indispensable.

Waste management—classified by type, hazard level, and destination (recycling, recovery, or disposal)—is another key factor in environmental performance and circular economy efforts.

Finally, environmental certifications (ISO 14001, EMAS, etc.) are an important credibility indicator: they demonstrate that robust processes are in place and verified by third parties

Social Area (S): The Value of People and Communities

The social dimension of sustainability concerns people, working conditions, and the relationship with the community. ESRS S1–S4 require transparent reporting on equality, safety, training, and human rights.

Workforce composition—distribution by gender, age, role, and type of contract—is a key indicator for understanding the organizational structure and evaluating inclusion and equality policies.

Occupational health and safety constitute one of the most important pillars of social reporting. Injury records, internal procedures, and ISO 45001 certifications demonstrate the company’s commitment to protecting workers.

Investments in training and professional development reflect the company’s capacity to enhance its human capital. Training hours, topics covered, and welfare programs provide a comprehensive picture of employee growth initiatives.

The relationship with the community—social programs, volunteer activities, donations, and partnerships—helps define the company’s role within its operating territory

Governance Area (G): Transparency, Accountability, and Control

Governance refers to the structure that guides, controls, and directs the company. Good governance is not a formal requirement but an essential condition for sustainable management.

Documentation on corporate structure and organizational charts helps clarify responsibilities, the composition of the Board of Directors, and the presence of sustainability-focused committees.

Compliance, anti-corruption, and whistleblowing policies are tools that ensure integrity and transparency. Their presence is now a fundamental requirement, even from investors.

A growing area of focus is the transparency of remuneration, especially when linked to ESG objectives. The CSRD encourages companies to better integrate sustainability into incentive systems.

Finally, tax transparency—through financial statements, explanatory notes, and tax policies—contributes to assessing a company’s fairness and accountability

ESG Strategy: Objectives, Policies, and Stakeholders

Effective reporting should not be limited to data collection; it must also highlight how sustainability is integrated into the company’s strategy.

Sustainability plans, with concrete and measurable objectives, form the basis of an ESG strategy. They should cover different time horizons and align with international commitments such as the UN SDGs.

Corporate policies on environmental management, human rights, sustainable procurement, and the code of ethics demonstrate the company’s commitment to implementing ESG principles in practice.

Stakeholder engagement—meetings, surveys, consultations—is a key component of the double materiality analysis required by ESRS. Engaging stakeholders helps understand expectations and build a more accurate and meaningful report.

Conclusions: Towards Solid and Verifiable Reporting

The ESG checklist is an essential tool for building a robust, verifiable reporting system aligned with the best European practices. Organized, traceable, and complete data collection not only enables the creation of an accurate sustainability report but also supports a true journey of continuous improvement.

In a rapidly evolving regulatory context, those who prepare today will gain a significant competitive advantage tomorrow: greater transparency, improved reputation, and easier access to financing and partnerships.