Sustainability Report Analysis
Reading between the glossy pages
Your Progress
Section 4 of 5The Corporate Reporting Problem
90% of S&P 500 companies now publish sustainability reports. Sounds great—except most are marketing documents designed to showcase wins while burying problems.
Common Tactics
- → Cherry-picking: Highlight small wins, ignore big impacts
- → Scope games: Report Scope 1&2, hide Scope 3
- → Intensity tricks: Efficiency gains mask total growth
- → Distant deadlines: 2050 targets with no 2025 milestones
What to Look For
- ✓ Full Scope 1, 2, AND 3 emissions disclosed
- ✓ Absolute numbers, not just percentages
- ✓ Third-party assurance on data
- ✓ Clear, near-term reduction targets
🎯 Interactive: Report Analyzer
Select a company's sustainability report and analyze it section-by-section. Uncover hidden red flags and greenwashing tactics.
🚩 Red Flags Cheat Sheet
Data Gaps
- • Scope 3 emissions missing (often 70-90% of total)
- • No breakdown by business unit or geography
- • Baselines not disclosed or frequently changed
- • No third-party assurance statement
Language Tricks
- • "Up to X%" instead of actual numbers
- • "Committed to explore" vs. "have reduced"
- • "Industry-leading" without benchmarks
- • Focus on inputs (spending) not outcomes (emissions)
Target Red Flags
- • Net zero by 2050 with no 2030 interim target
- • Targets that aren't science-based (SBTi)
- • Heavy reliance on offsets vs. reductions
- • No accountability mechanism if targets missed
Governance Gaps
- • Sustainability committee with no decision power
- • No executive compensation tied to climate KPIs
- • Board members lack climate expertise
- • Lobbying contradicts public commitments