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Taking sustainability beyond words
Nowadays, it has become increasingly difficult for companies to avoid the subject of sustainability, or performance related environmental, social and governance (ESG) indicators.
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owadays, it has become increasingly difficult for companies to avoid the subject of sustainability, or performance related environmental, social and governance (ESG) indicators. Whether one is an advocate or not, every company today has a position on sustainability, and most, at least publicly, convey their support for it, lest they face criticism or backlash from a growing subset of more savvy investors and consumers.
However, it is still too easy to make public commitments without much retribution for what is referred to as “greenwashing”, or making a claim about a positive environmental impact that does not exist. This can mislead consumers and stakeholders into thinking that a company or a product they use is sustainable, even when the evidence actually proves otherwise.
The 2021 Institutional Shareholder Services Governance Report found that despite an increasing demand for ESG reporting, “the quality of most Sustainability Reports is suboptimal, leaving investors with opaque views of performance.” Lacking in details and quantitative metrics, most ESG reports today are unable to reassure investors of the long-term benefits of investing in these companies.
This is where evidence-based sustainability reporting becomes critical. Companies need to provide credible, substantiated evidence of how they will achieve their sustainability goals. Likewise, stakeholders should expect that the companies whose products and services they use report back what they are doing to advance their sustainable business operation, and how much progress they make each year.
Evidence-based reporting
For GoTo, we have been able to do this since the beginning of our formal sustainability journey when we first began ESG reporting in 2021. Beyond making public commitments, we have set our sustainability priorities based on what is tangible to the company and our ecosystem, and categorized them into three easy-to-understand goals, the Three Zeros by 2030: Zero Emissions, Zero Waste, and Zero Barriers. For each of our goals, we have a corresponding roadmap that is publicly available on our website, providing live updates on our yearly progress and targets. This is complementary to our annual Sustainability Report, which discloses the key performance metrics against each Three Zero commitment for the preceding year. This includes the primary levers used to reduce our emissions and waste inventories, such as accelerating the adoption of electric vehicles (EVs), transitioning to renewable energy sources and eliminating excess packaging, as well as providing non-predatory financial products and services to support the economic wellbeing of our millions of users.
Our commitment to accountability and transparency does not stop there, our ESG disclosures are audited independently and in line with global ESG reporting and industry standards, as well as measured according to financial materiality as much as environmental and social impact. Sustainability to GoTo is no longer a cost center; in fact, it has helped us find new ways of reducing or replacing our operational expenses as a company or for our partners.
A new standard of transparency
Sustainability today has to go beyond clever marketing campaigns and shiny reports. For all stakeholders, consumers, investors and the public, it should be non-negotiable for companies to demonstrate just how they are credibly integrating sustainability into their business models and operations. Beyond incorporating environmental and social aspects into their operations, the governance component is even more critical as it ensures sustainability is prioritized regardless of the leadership at the helm of the organization.
While we continue on our journey to improve, strengthen and scale our own sustainability efforts, we endeavor to also support, facilitate and learn from our peers and partners. This cross-industry and multi-stakeholder exchange and collaboration is key to make the essential shifts needed, so we can collectively address the shared and most pressing challenges today and in the future. This reinforces the need for transparency and accountability in everything we do, showing the world how we are taking sustainability beyond words and into real, credible impact for our company, ecosystem and the region.
Tanah Sullivan, GoTo Group Head of Sustainability
“Disclaimer: The opinions expressed in this article are those of the author and do not reflect the official stance of The Jakarta Post.”
