In part 1, we shared our vision for design’s role within ESG, and explored how design is used to present ESG scores. In this article, we’ll be diving into ESG reports and metrics.

But first, a quick recap.

Our vision

We believe that data should help people understand the world around them. In our view, the ESG domain ought to be:

• Accessible
  By definition, ESG data impacts our world. We want information to be accessible to a wider audience beyond industry experts & investors.
• Transparent
  ESG data should be complete, accurate, and verifiable. Greater transparency builds accountability, and ensures legitimate progress.
• Comparable
  Consistent reporting will reduce complexity, level the playing field for companies, and enable consumers to make informed choices.

ESG Reports

Reports provide in-depth analysis across various ESG issues, over a given year. Some ESG reports exist within annual reports, others are produced as standalone PDFs, and others are presented as micro-sites or pages within a corporate website.

Following the new EU legislation, nearly 50,000 companies will soon be required to compile a comprehensive ESG report on their environmental and social impact. These reports, alongside other publicly available information, are used by scoring companies to inform their assessments and determine an ESG score.

Our process

We defined criteria that describe, from our design perspective, a good ESG report. This criteria came from our own experiences analyzing visual material and was informed by specific examples we encountered whilst reviewing ESG content.

Given that reporting topics can vary significantly between industries, we chose to use fashion and apparel as a consistent baseline for comparison. The fashion industry is particularly significant due to its:

• Impact
  The sheer size of the fashion industry and its contribution to global emissions make it a critical player in efforts to build a more sustainable economy.
• Familiarity
  Fashion represents an accessible entry point to this data. We were working with a tangible product, and chose companies we were familiar with as consumers.
• Relevance
  The Fashion industry inherently values aesthetics, visual qualities, creativity, and storytelling, and therefore seemed fitting to assess from a visual design perspective.

We combed through five reports from this industry to understand how each company communicates ESG data, guided by the following questions:

Clarity

• Is the report easy to read and understand, with clear navigation and logical grouping of information?
• Are technical terms explained, and is there a clear hierarchy of information with a good balance of text and white space?
• Do visual aids (charts, graphs, infographics) effectively support the data and enhance comprehension?

Engagement

• Do design elements capture attention and maintain focus, especially in complex sections?
• If digital, is the report interactive, allowing for customization (e.g. sorting data, toggling sections)?
• Does it present a compelling narrative with storytelling elements (e.g. case studies, relatable comparisons) that humanize the data?

Format

• Is the report available in multiple formats (e.g. print, factsheet, microsite), and is the design optimized for each format?
• Does the report provide direct access to raw data or supplementary reports for readers who want to dig deeper?

Accountability

• Does the report acknowledge past performance, including any adjusted or missed targets?
• Are measurable goals clearly outlined, with timelines and comparisons to previous performance?
• Does it address errors or failures, providing explanations and demonstrating accountability?

Transparency

• Does the report maintain credibility, offering balanced insights rather than just highlighting positive outcomes?
• Does the report include third-party audits or certifications, enhancing credibility?
• Are the methods for data collection clearly explained, and any limitations of the report acknowledged?

Branding

• How effectively does the report function as a brand touchpoint?
• Does the design and tone reflect the company’s brand identity, making the reader feel connected to the brand experience?
• Is there a seamless transition to other branded content (e.g., website, social media) that enhances the brand experience?

Data Visualization

• Does the report use data visualization effectively to present complex information in an easily digestible format?
• Are visualizations clear, accurate, and appropriate for the data type, with proper labels and legends?
• Do the charts and graphs accurately represent the data, avoiding misleading scales or colors?

Key takeaway

None of the companies we examined performed well across all categories, and the quality of the visuals and content varied greatly. The reports we reviewed, though all from consumer-facing brands, struggled balancing detailed, transparent and accountable information, and presenting it in a way that is accessible and engaging to the general public. This feels like a missed opportunity, given that a joint study from McKinsey and NielsenIQ in 2023 (albeit for consumer staples) showed consumers shifting their spending toward products with ESG-related claims.

We concluded that ESG reports lack visual-communication guidance, data design expertise and inspiration as to how to connect this data with a wider audience. As such, we chose to reformat our original assessment criteria as a set of guiding principles:

Our defining principles for a ‘good’ ESG report, from a visual design perspective

Our principles

• Engaging
  Reports should capture the reader’s attention and maintain guided focus through a clear narrative.
• Accessible
  Information should be accessible for a range of audiences and be tailored using different mediums.
• Clear
  Use clear language, navigation and layout. Reports should be readable and data understandable.
• Branded
  The report is an extension of your brand and reflects your investment in ESG issues.
• Accountable
  Reports build trust by acknowledging previous reporting history, and the responsibility of disclosing.
• Transparent
  The report should communicate in a way that feels transparent and doesn’t leave unanswered questions.

Collectively, we hope these principles will guide others toward our vision of accessible, transparent, and comparable ESG reporting.

ESG metrics

Metrics refer to the global issues under each category of ‘Environmental’, ‘Social’ and ‘Governance’, such as resources used, product safety and quality, or tax transparency. This information exists within ESG reports, or through other forms of disclosure.

Our process

Each industry weighs ESG issues differently, depending on which have more substantial impact. We revisited the fashion reports we’d previously analyzed, and looked for high impact metrics for this industry (product carbon footprint, labor management, and governing board composition) to understand how they were visualized.

Our findings

The most consistent data presentation choice was a table. While tables can be useful and consistent ways to present data — especially for comparing values and looking up information — relying solely on this format misses the opportunity to highlight aspects such as trends over time, which are important for reviewing performance against future targets.

When companies did choose other forms, they frequently opted for a bar chart, pie chart or line chart. However, many of the charts we saw fell short of their potential due to factors such as poor chart choice or lack of visual hierarchy.

So how do we create effective data visualizations? We’ll share an example of our thought process when analyzing a specific chart.

Our approach to analyzing data visualizations

There are almost infinite choices available when creating a data visualization. As a basic starting point, we ask ourselves:

1. What data do we have?
2. What visualization is appropriate for that data?
3. What’s the most important thing to show?

We’ll apply this thought process to this small multiples bar chart from LVMH’s 2023 Social and Environmental Responsibility. It displays CO2 emissions over the past three years, broken down into the different business groups.

The original data visualization showing change in greenhouse gas emissions by business groups at LVMH

1. What data do we have?

• Emissions breakdown per business group
• Emissions split by percentage between scope 1 and 2
• Total CO2 emissions across the last three years

2. What visualization is most appropriate for that?

Chart choice depends on the data itself, the audience, the format and the intent. Every chart has benefits and drawbacks.

A pie chart could be used to illustrate CO2 emissions per business group. However, this form is ineffective for a large number of categories, and doesn’t allow for precise comparisons. For emissions split by scope, a stacked bar chart is ideal, but a line chart may be more effective for showing change over time.

In this example, we’ll continue with LVMH’s small multiples bar chart. It offers flexibility and clarity across the multiple data types, showing both change over time and contribution per business group.

3. What’s the most important thing to show?

Prioritization is crucial for creating focus, guiding design decisions, and determining what to include, remove, and emphasize. In the original chart, various data types appear to have equal priority, resulting in information competing for attention.

We established these top three priorities:

• Total emissions for 2023
• Emissions per category
• Scope breakdown

To maintain the report’s integrity and transparency, we’d suggest using an appendix for additional details and providing access to the data for those who want to explore further.

Priority 1: Total emissions for 2023

Even if someone only briefly glances at this chart, the total emissions for 2023 compared to previous years should be immediately clear.

• Move the total to the top of the page
• Neutralize color of 2022 and 2021 to emphasize the latest year

Priority 2: Emissions per category

It should be clear that this is a small multiples chart, and we should be able to quickly scan to establish the biggest contributors in 2023.

• Ground small multiples with an axis / baseline
• Adjust spacing to create stronger groupings
• Reorder by size of contribution in 2023

Priority 3: Scope breakdown

Scope breakdown values don’t follow the same formatting as the total annual values, and add visual clutter. We would recommend incorporating this information into bars themselves, and being selective about labelling exact values.

• Visualize the scope breakdown within the bars themselves
• Include exact numbers only for the totals and largest contributors in 2023

General improvements

In addition, we applied a few tweaks to improve overall comprehension:

• Change chart title to better reflect the key chart information
• Remove excess and distracting information
• Reduce variation in type sizes to preserve clarity
• Use san serif for all numbers for easier reading
• Switch to serif for the category names to align with branding
• Make use of the the full page width to see differences in values more clearly

Key takeaway

This is small thought experiment has been explored in isolation, but all data visualization design choices ought to support the broader narrative of an ESG report. Seemingly small visual adjustments in spacing or color can significantly shape the focus of each visualization and play a crucial role in providing clarity and enhancing the understanding of ESG data.

Ensuring that an ESG report is accessible, transparent, and comparable extends to every data visualization within the report and without adequate care, attention, and expertise, companies risk obscuring key insights or misrepresenting their data.

Conclusion

We’re hopeful that upcoming changes in ESG legislation will empower consumers to better navigate sustainable choices, but there’s still a long way to go before ESG data could be described as accessible, transparent or comparable. The importance of effective data design in achieving this mission cannot be overstated.

While regulatory bodies work to enhance reporting standards and ensure compliance, we as designers see our role as shaping the communication and visualisation standards that bring this data to life. As ESG reporting becoming more widespread and with more data becoming available, we see powerful potential in bringing our expertise to this space.

For an example of our previous work transforming sustainability data, explore the comprehensive investment platform created with Globalance.

We’re passionate about exploring this field further, and welcome the input from those working with sustainability data.