Best Practices for ESG Communication and Reporting: Enhancing Stakeholder Engagement and Circular Economy Success

The achievement of circular economy goals relies on strong business-stakeholder engagement. Stakeholder trust and confidence are influenced not only by a business’s sustainability efforts but also by the effectiveness and accuracy of its ESG (environmental, social, and governance) disclosures. Several organizations have weakened their stakeholder relationships because of poor, inaccurate, or fraudulent ESG disclosure thus impeding their progress to circular economy goals. Building on earlier research, this chapter examines the main components of effective ESG reporting, as well as best practices for ESG reporting and communication. The findings and conclusion of this chapter stress that ESG reporting must be effective and accurate in promoting stakeholder confidence that is likely to stimulate organizational stakeholders to collaborate and become engaged in organizational sustainability initiatives and, eventually, contribute to the accomplishment of circular economy goals. This chapter's insights would be valuable for organizations that are new to ESG reporting and communication, as well as business executives, strategists, and sustainability managers that want to improve their ESG disclosure. It aims to assist organizations in advancing or initiating ESG disclosures, as well as adding to the expanding corpus of research on the topic.