Increasingly Limited Partners (LPs) and other key stakeholders like investees and employees are asking investment firms how they are improving their sustainability performance within the firm and across their portfolio. These stakeholders are no longer interested in vague commitments. They want to see action, and crucially they seek transparent communication about progress made on sustainability initiatives. 

This shift presents a unique opportunity. When done well, sustainability reports become strategic tools, signaling accountability around sustainability commitments, building trust with key stakeholders, and strengthening a firm’s positioning with capital allocators.

In this blog post, we explore what sustainability reports are, why they matter, and how investment firms can utilize them not only to report on impact, but also to create it.

What is a sustainability report?

A sustainability report is an impactful way for a company to authentically and creatively share its progress on sustainability over the past year.  It’s an opportunity to humanize your sustainability strategy and share it in a way that is both transparent and engaging. These reports communicate your wins, lessons learned, and where you are headed next in your sustainability journey. 

Key sections in investor sustainability reports include:

• A welcome letter from your leadership team - framing your sustainability vision, recent progress, and key topics the report will cover
• Key achievements - highlights from the past year worth celebrating
• Progress on last year’s goals - this is especially important if you have set public-facing targets
• A high-level overview of your firm’s sustainability strategy
• Sustainability integration in the investment process -  recent changes in how you evaluate, support, or exit portfolio companies in the last year
• Portfolio sustainability performance - an evaluation of the portfolio sustainability performance with honest reflection on areas of strength and opportunities for improvement
• Internal initiatives - company-wide initiatives to spotlight e.g. employee wellness initiatives, charitable donations, carbon measurement and offsetting programs
• Goals for the year ahead - key focus areas for the next year and public-facing targets (if applicable to your company)

What are the benefits of sustainability reports?

A well-crafted sustainability report can be used to:

• Signal to LPs, investees, employees, and other key stakeholders that your firm is committed to sustainability, as it showcases your firm's values and impact
• Build trust with key stakeholders like LPs by helping you communicate transparently about your sustainability performance
• Be leveraged as a tool when fundraising to differentiate your firm from your peers

Whether used in meetings, on your website, or across marketing channels, the report can become a transparent and powerful way to communicate your firm’s commitment to impact and progress on your sustainability journey.

Making the most of your sustainability report

You have invested time and energy into gathering the data, writing the content, and designing your report. Don’t let it stop there - use the report as a launchpad for impact:

Use the report to foster a company culture that celebrates sustainability

Make your sustainability report a regular reference point that reminds your team of the initiatives happening across the business and what's next in your sustainability journey. Key ways to achieve this include:

• Hold company meetings to showcase the key highlights of the report
• Include reading the report as part of the onboarding process, so new hires understand your sustainability initiatives and commitment to impact from day one
• Spotlight the report in internal newsletters (if applicable to your company)

One of our customers, Inveready, has printed physical copies of their report to display around the office, making sustainability an integral part of their day-to-day culture.

Share insights with stakeholders year-round

Sustainability reports shouldn’t gather dust after launch day. They are a valuable resource, offering rich insights, data, and stories that can be used throughout the year to support strategic communications and keep your team informed and engaged around sustainability initiatives. Key ways to do this include:

• Repurpose charts, visuals, and statistics from the report across social media channels, newsletters, blogs, and press releases
• Reference key sections of the reports during board meetings, LP updates, and team events e.g. company offsites
• Feature the report prominently on your website’s sustainability or impact page

Think of the report as a living document, one that keeps the sustainability conversation active throughout the year.

‍Share the report in fundraising to engage with LPs

Sustainability reports are a powerful asset to show to LPs during fundraising as they provide a transparent, engaging way to showcase your firm’s sustainability performance and commitments. Keys to do this include:

• Bring the report to investor meetings
• Reference the report at networking events and industry panel discussions
• Use the report to start conversations about LP’s own sustainability initiatives and priorities

A clear, credible report showcases your commitment and can differentiate your firm in competitive fundraising environments.

Kara - your partner for strategic communication 

The combination of access to Kara’s platform to gather and analyze portfolio data, plus Kara’s communications experts, enables our customers to create impactful sustainability reports.  Key benefits of partnering with Kara include:

• Hands-on support from Kara’s sustainability communications experts - guiding you through each stage of the content creation and design process with confidence and clarity.
• Professionally designed reports that align with the firm’s brand identity - including logo, color palette, and typography.
• Deep understanding of the nuances of your portfolio’s sustainability data - making sure the analysis and statistics used in the report are accurate and robust.‍
• Seamless integration with Kara’s data infrastructure - no copy-pasting, no errors. Your report is built on robust portfolio data pulled directly from Kara’s platform, ensuring accuracy, consistency, and efficiency.

“Kara helped us produce a bespoke sustainability report that reflects our values and meets the standards we were aiming for. The experience was efficient, professional, and exceeded expectations.”

Laia Prats, Head of ESG at Inveready

Read Inveready’s report here

Action over announcements

Sustainability leadership today is about action, not only ambitions. A well-crafted sustainability report is a strategic asset that builds trust with key stakeholders like LPs as it transparently showcases how your firm is moving beyond promises and making measurable, impactful progress on your sustainability journey.

At Kara, we help investors transform complex data into clear, compelling reports that impactfuly showcase their sustainability performance.