How do we report on social and community impacts alongside environmental metrics

While most enterprises are familiar with environmental reporting, social and community impact metrics present a new set of challenges. From data collection difficulties to evolving regulatory requirements, businesses often struggle to integrate social impact into their sustainability strategies.

Here’s how to navigate the most common obstacles.

Challenge 1: Measuring Intangible Social Impacts

Unlike carbon emissions, social impact isn’t always quantifiable. Metrics such as employee well-being or community engagement require qualitative insights alongside quantitative data.

Solution:

• Adopt a mix of quantitative (e.g. employee turnover, training hours) and qualitative (e.g. employee surveys, community feedback) data.
• Use established ESG reporting frameworks (GRI, ISSB) to ensure credibility.

Challenge 2: Navigating Regulatory & Investor Expectations

With frameworks like CSRD, SFDR, and ISSB evolving, many companies find it difficult to meet compliance requirements while also addressing investor demands for transparent social impact data.

Solution:

• Regularly monitor regulatory updates and align reporting with evolving ESG standards.
• Implement materiality assessments to prioritise the most relevant social impact areas.

Challenge 3: Data Collection & Verification

Unlike environmental data, social impact information often comes from multiple sources (HR, CSR teams, and external partners etc.) making it difficult to centralise and verify.

Solution:

• Use technology platforms to automate and streamline data collection.
• Establish clear reporting structures within sustainability teams to improve accountability.

Overcoming these challenges is critical for enterprises aiming to meet ESG expectations and future-proof their sustainability strategies.

Did you know you can create custom reports within Rio to report on Social impact? Learn more here.