What is the role of stakeholders in sustainability reporting?

Stakeholders play a crucial role in sustainability reporting by helping to identify relevant sustainability issues that affect the organization. This involvement is vital because stakeholders—such as employees, customers, investors, suppliers, and local communities—offer diverse perspectives and insights that can highlight what is important regarding sustainability performance and practices. Engaging with stakeholders ensures that the reporting addresses their concerns and expectations, leading to more comprehensive and relevant disclosures.

This process not only fosters transparency but also aligns the organization's sustainability goals with the interests of those affected by its operations. By understanding stakeholder perspectives, organizations can better assess risks and opportunities associated with sustainability, ultimately leading to more informed decision-making and improved performance in this area.