Whether you’re responding to customer pressure, investor expectations, or new ESG regulations, a sustainability report is now one of the most important documents your business can produce.

But where do you start?

If you’ve never published one before, the process can feel daunting — especially when it comes to gathering data, defining your emissions, and setting credible goals.

This guide walks you through how to create your first sustainability report step-by-step, from setting your baseline to developing a meaningful carbon reduction plan.

Why Sustainability Reporting Matters

Sustainability reporting has moved from a corporate “nice-to-have” to a business necessity.

Frameworks like the Corporate Sustainability Reporting Directive (CSRD) in the EU, and ESG disclosure standards under SFDR, are pushing companies of all sizes to publish credible, data-driven reports.

A sustainability report demonstrates:

Transparency: You’re open about your environmental and social impacts.

Accountability: You’re measuring progress, not just making promises.

Credibility: You’re using recognised frameworks such as the Global Reporting Initiative (GRI) or GHG Protocol.

But perhaps most importantly, it helps you understand your own operations better — identifying where emissions are coming from and how to reduce them effectively.

Step 1: Define Your Scope and Framework

Before gathering data, determine what your report will cover.

Ask yourself:

Which parts of the business will be included (all operations, specific regions, or subsidiaries)?

Which ESG frameworks will guide your structure (e.g. GRI, SASB, or CSRD)?

What’s your primary audience — customers, investors, regulators, or internal teams?

Defining this scope early ensures your first report is realistic, focused, and aligned with stakeholder expectations.

Step 2: Set Your Baseline

Your baseline year is the foundation of your sustainability reporting. It provides the reference point against which you’ll measure future progress.

To establish a baseline:

Collect data from your most recent full year of operations.

Measure emissions across Scope 1 (direct), Scope 2 (energy), and Scope 3 (supply chain and indirect) categories.

Ensure data quality and consistency — missing or inaccurate data now will make it harder to track improvement later.

Tools like Emerald Power help automate data collection and calculate emissions in line with the GHG Protocol, giving you a robust, audit-ready baseline.

Step 3: Know Where Your Emissions Are Coming From

Once you’ve set your baseline, the next step is understanding your emissions profile.

This means breaking down your footprint to see which activities and business areas generate the most carbon.

For example:

Scope 1: Fuel use, on-site combustion, company vehicles.

Scope 2: Electricity, heating, cooling.

Scope 3: Purchased goods, waste, business travel, logistics, and investments.

This analysis highlights your “hotspots” — areas where reduction efforts will have the biggest impact.

Without this clarity, your sustainability plan risks becoming generic rather than strategic.

Step 4: Set Reduction Targets and an Action Plan

Now that you know your emissions baseline and main sources, it’s time to build a carbon reduction plan.

Your plan should include:

Short-term goals: Energy efficiency, renewable energy sourcing, waste reduction.

Medium-term goals: Supplier engagement, logistics optimisation, low-carbon product design.

Long-term goals: Net-zero alignment and Science Based Targets (SBTs).

Each goal should be SMART — Specific, Measurable, Achievable, Relevant, and Time-bound.

Platforms like Emerald Power can help track progress, visualise trends, and generate reports aligned with CSRD, EcoVadis, and SBTi requirements.

Step 5: Communicate Transparently

Your first sustainability report doesn’t need to be perfect — it needs to be honest.

Highlight your achievements, but also acknowledge areas where improvement is still needed.

Include:

A clear summary of your baseline emissions.

Year-on-year performance (if available).

Key actions and next steps.

Future commitments or upcoming initiatives.

Transparency builds trust with your audience and credibility with rating agencies such as EcoVadis.

Step 6: Review and Improve Annually

Sustainability reporting is not a one-off exercise. Each report should become part of a continuous improvement cycle.

Use the insights from your first report to refine data collection, update your reduction plan, and engage teams more deeply in the process.

Over time, this rhythm of measure → report → improve becomes embedded in your company culture — driving both environmental and commercial benefits.

How Technology Simplifies Reporting

Manual reporting can be time-consuming and error-prone.

With digital tools like Emerald Power, companies can:

Automate carbon data collection across all business units.

Calculate Scope 1–3 emissions using recognised methodologies.

Visualise progress against targets and baselines.

Generate professional, audit-ready sustainability reports.

By streamlining your workflow, you’ll spend less time chasing spreadsheets and more time focusing on real sustainability improvements.

The Bottom Line

Creating your first sustainability report is a milestone — not just in compliance, but in accountability.

By setting a clear baseline, identifying where emissions come from, and developing a reduction plan, your company takes the first real step toward measurable climate impact.

It’s about turning data into direction — and direction into progress.

Emerald Power helps businesses collect emissions data, set baselines, and create sustainability reports that align with global standards like CSRD, EcoVadis, and SBTi.

Get in touch to learn how automated reporting can save time, improve accuracy, and strengthen your sustainability performance.

Frequently Asked Questions (FAQ)

1. What should be included in a sustainability report?

A sustainability report typically includes environmental data (like emissions and energy use), social performance (diversity, employee welfare), governance practices, and your company’s sustainability goals and results.

2. How do I calculate my carbon footprint for the report?

Use the GHG Protocol to measure emissions across Scope 1, 2, and 3 categories. Tools like Emerald Power automate calculations and ensure accuracy.

3. Why is setting a baseline important?

A baseline provides the reference point for future comparison. Without it, you can’t measure whether your emissions are actually decreasing over time.

4. How often should I publish a sustainability report?

Most companies publish annually to maintain transparency and track progress year over year.

5. What are common challenges when creating a first sustainability report?

Common hurdles include incomplete data, lack of internal coordination, and uncertainty about reporting frameworks. Starting small and building structure over time helps overcome these challenges.