Non-Financial Reporting

 Non-financial reporting is a form of transparency reporting where businesses formally disclose certain information not related to their finances, but other integral things including business model, policies, risks, results, due diligence in ESG, human rights, diversity of the board of directors and more. Other than compliance, non-financial reporting has various benefits for companies, the strongest and most important one being business risk management. Potential stakeholders, investors, and business partners can reflect on this for very important business discussions.

Companies that do not believe in addressing these concerns or issues may find themselves in deep losses in the coming future as these pre-financial risks (ESG risks) are becoming central to all business strategies. Sustainability risks are not just to be managed and put aside, they as a matter of fact tend to drive the performance, build a company into a brand and protect it from the modern consumers’ inquisitive mind. As a matter of fact, ESG activities help improve the business operations, strategy, and financial performance. For example, a good employee social security and healthcare benefits plus pensions will reduce turnover which means less training hours and larger productivity, or reducing waste reduces costs of dumping which improves the finances of a company. It also makes the company come across as more innovative and a good marketing strategy, which in turn always helps to generate new business opportunities.