Across Europe, more and more companies need to share non-financial information about how they care for the environment, their employees, partners and how they manage their businesses responsibly. An EU regulation, the Corporate Sustainability Reporting Directive (CSRD), requires many companies to start publishing detailed reports about their sustainability efforts. These reports, often referred to as ESG Reports, Sustainability Reports, Social Impact Reports, or Integrated Reports, when combined with financial results, are becoming essential tools for businesses to communicate their values and strategies.
Across markets, reporting on ESG initiatives has gained significant importance. Whether these reports are created to meet regulatory requirements or to demonstrate transparency and leadership in sustainability, their effectiveness lies in engaging stakeholders and fostering trust and meaningful connections.
Why is it important?
Research from PwC indicates that 90% of business leaders feel responsible for taking concrete action in environmental, social, and governance investments. Additionally, 86% of employees prefer working for companies that uphold strong ESG criteria, showing that effectively communicating these actions can significantly impact a company’s perception and relationships with stakeholders.
Designing a strong ESG report
Presenting a company’s ESG performance in a visually appealing, audience-focused report builds stakeholder trust and credibility. An aesthetically pleasing and clear report demonstrates that the company takes its communication seriously, prioritizing detail, accessibility and consistency of message with brand image. Today’s consumers are increasingly aware of the ESG definition and the ethical and responsible behaviour of companies. The ESG report is one of the tools that provides this information and creates positive associations. In addition, robust ESG investment practices enhance a company’s reputation as a desirable place to work, attracting employees who share its values – a critical factor in attracting talent in a competitive labour market.
At the same time, a company’s value is no longer defined solely by its financial performance. ESG reports highlight whether a company has a forward-looking business strategy that considers different scenarios, risks and environmental impacts, giving investors a fuller picture of its long-term growth potential. For example, ESG stocks are increasingly attractive to investors seeking sustainability-focused companies because a comprehensive ESG report gives them a deeper insight into a company’s commitment to sustainable practices.
PwC’s analysis shows that prioritizing ESG reporting can attract greater investor attention and increase a company’s market value. What is the ESG movement if not a shift towards greater transparency, accountability and sustainable development?
How do you design an effective ESG report?
Legislation dictates the data and information required in non-financial reports, but the style of presentation is left to the company’s creativity. An eye-catching design that attracts attention ensures readability, and effectively communicates the company’s values is crucial.
Here are some elements to consider in an ESG report:
Cover and format
From communication psychology, we know that first impressions are crucial. In the case of an ESG report, the cover plays that role, which is why it’s important to ensure it grabs attention and enhances the document’s credibility, encouraging readers to explore its content. For example, Prometey Bank’s 2012 report, produced with WWF, featured illustrations of different animal species in an unfinished style, symbolizing the threat of extinction.
Source: Behance
While printed copies may appear elegant, their environmental footprint should be considered, and printing should be reserved for specific stakeholders. Instead, digital formats, which are more environmentally friendly and can offer interactive experiences, are preferable. Digital reports allow for interactive elements such as animations, animated charts and easy navigation, increasing engagement. This approach is ideal for companies that want to demonstrate their commitment to sustainable development at all levels, including data presentation.
An example of an effective digital report is the interactive PDF created by Admind Branding & Communication for the Energy Efficiency Movement, a global initiative promoting energy-efficient industrial solutions.
Source: Admind
If you decide to print, consider using recyclable materials. Additionally, it’s worth thinking about the format itself, moving towards something that might even more closely reflect your company’s identity. For example, Pirelli’s report also served as a sculpture—it could be placed on a desk or displayed in a prominent location. Its form was not only innovative but also aligned with the brand’s values, emphasizing creativity and innovation. This approach demonstrates that a report can become not only a medium for conveying information but also a tool for shaping the company’s image.
Source: Behance
Visual consistency and brand alignment
The report’s visual consistency with the brand identity is critical to establishing an authentic message. The colours, typography, logos, and style of photos and graphics should be in line with the company’s image and create positive associations that are instantly recognizable. This approach reinforces credibility while highlighting the company’s values, laying the foundation for long-term, trust-based relationships.
For example, a company that values minimalism and transparency might use clean, simple layouts and a subtle colour scheme in the report to reflect its straightforwardness and transparency in action. Meanwhile, a company that promotes creativity in problem-solving might use unique illustrations or interactive elements to engage the reader creatively. A brand focused on multicultural collaboration might express its values through different graphic styles inspired by cultures worldwide or use images of international teams in everyday settings to highlight global collaboration. Such approaches effectively demonstrate the company’s commitment to diversity and inclusivity.
Readability as a priority
While design is essential, readability should remain the primary focus. Even the best-designed report loses its impact if readers cannot easily understand it. A clear content structure, readable fonts and a moderate colour palette ensure accessibility.
- It is a good idea to separate the different sections of the report clearly. It is better to avoid an excess of graphic elements that could make it difficult for readers to navigate through the document. Dividing the report into clear blocks and sections makes it easier to understand and digest.
- Appropriate typography is essential. Simple, legible typefaces facilitate the reception of more and less extensive texts. A well-chosen font not only improves the document’s aesthetics but also increases its clarity, which is of great importance, especially for longer documents.
- A conscious choice of colours is important. Instead of introducing too many, it is better to opt for a maximum of three colours in addition to white and black from the brand identity palette. This will ensure visual consistency and increase the report’s clarity. Excessive colours can distract the audience and make it difficult to focus on key content.
The definition of ESG factors is essential as it provides a clear understanding of the non-financial criteria considered in the report, such as emissions reduction, diversity initiatives or governance practices.
Accessibility and inclusivity
Modern communications, including ESG reports, prioritize accessibility and inclusivity. To create documents that are understandable and accessible to diverse audiences, companies should adopt digital user experience best practices that emphasize simplicity, intuitiveness, and easy access to content. Printed versions should have larger fonts, high text-to-background contrast and generous line spacing to be accessible to people with visual impairments. In digital formats, this means designing reports that are friendly to visually impaired readers and compatible with assistive technologies such as screen readers.
Adapting the report for different devices and browsers, also known as document responsiveness, allows audiences to easily view the content in any environment, from desktops to mobile devices. Documents in formats such as PDF should include properly described graphic elements and well-formatted text to ensure smooth navigation and full access to the content. Interactive menus or a table of contents make it easier to move quickly between sections of the report, enabling readers to find the information they are interested in more easily and enhancing the overall user experience. Making reports accessible reinforces the ESG message by demonstrating the company’s genuine commitment to building inclusive, equal relationships.
Accelleron Annual Report 2023 report is an example of interactive navigation, demonstrating how easy-to-navigate digital formats enhance the user experience.
Source: Accelleron
Storytelling
Storytelling can make an ESG report more engaging and accessible. Presenting the organisation’s actions through real stories illustrates their impact on local communities, employees and the environment. Rather than presenting raw data, focus on how this information translates into real change that matters to people and their communities. Specific stories reinforce the company’s authenticity, bring it closer to stakeholders and build an emotional connection.
Examples of storytelling:
- Introduction from senior management
Begin the report with a personal message from the CEO or senior executive. This message should emphasize why ESG actions are critical to the future of the company and its stakeholders and offer reflections on the importance of sustainable development and leadership’s commitment.
What does it achieve? An introduction from the leader gives the report a human dimension. A personal message not only builds trust but also helps convey that ESG efforts are not just a corporate strategy but also a matter of the leaders’ values and priorities. The CEO can outline the steps taken over the past year and how these decisions have impacted people, the planet, and how the company is managed.
- Impact on employees
Another key element could be presenting specific examples of how ESG initiatives impact employees. Instead of abstract descriptions, it’s worth sharing stories of employees who have benefited from the implemented changes. This might include efforts to improve working conditions, programs supporting employee health and well-being, or examples of employee involvement in social initiatives.
- Impact on customers and stakeholders
Illustrating how sustainable development impacts customers and other stakeholders, such as business partners or suppliers. Storytelling can focus on how the company adapts its products, services, or operational models to meet the needs of customers seeking more sustainable solutions. It demonstrates the company’s responsiveness to the needs of those seeking sustainable solutions.
- Impact on local communities and NGOs
Storytelling in the ESG report can also show how the company’s activities impact local communities. Describe specific projects that the company supports, which may include environmental, educational or social initiatives. Collaboration with NGOs, for example, can be highlighted to show how these partnerships contribute to achieving ambitious ESG goals and underscore the company’s commitment to making a positive difference.
- Long-term vision and future goals
It is also essential to communicate the company’s long-term ESG vision, showing how current actions contribute to a better future. This section can outline the company’s ESG goals for the coming years and link these plans to global challenges such as climate change, inequality and natural resource conservation.
- Infographics and data visualization
A report full of text and dense tables can be daunting to read. While meeting regulatory requirements is sufficient, it is worth asking whether this is the best way to communicate with different stakeholder groups. Each of them may have different informational needs, so it’s important to ensure the message is accessible to everyone. Infographics and interactive charts simplify critical data, make it easier to remember and invite stakeholders to read on. This ensures that key data is immediately understandable, encouraging further reading.
Source: Orange
Source: Admind
Summary
Reporting on a company’s sustainability efforts is increasingly important for regulatory purposes and to build trust with key stakeholders, including investors. Prioritizing the visual layer of the report from the outset ensures that an aesthetically pleasing and well-designed document not only improves readability but also engages the audience. Investors are increasingly looking for companies that present their sustainable strategies transparently and professionally. A sustainability report incorporating modern visuals and a cohesive design becomes an invaluable communication tool that enhances a company’s credibility and market value. It’s more than a formality – a powerful way to attract investors and build a lasting reputation in the marketplace.