The green economy changes the relationship between business and environment. In a green economy, green companies refer their competitiveness on high level environmental and eco-innovation standards for products and processes and play an active role in promoting sustainability policies and the transition towards a green economy.
The Sustainable Development Foundation identifies two different categories of green companies:
• core-green companies, as those organization focussing on the production of environmental goods and services in accordance to a roadmap towards a green economy transition;
• go-green companies, as those organizations embodying high environmental standards in their business models both for production and marketed products, although not focussing on environmental goods and services. In this context, the Sustainable Development Foundation developed an innovative approach to sustainability reporting – the Green Economy Report (GER), aimed at meeting specific needs of green companies in assessing and communicating their performances in the frame of a green economy.
To properly assess and report the effective performance of a green company, the Green economy reporting approach proposed by the Sustainable Development Foundation considers:
• the adoption of specific indicators based on products Life Cycle in order to evaluate cost and benefits for the environment, the economy and the society at a whole in the performance analysis;
• the comparison of the green company performances with those of a similar organization in a traditional business model in order to assess the balance in the transition towards a green business model;
• the integration of the reporting assessment in the strategic approach of the enterprise by elaborating specific indicators, objectives and targets to measure continuous improvement results in the short and medium term;
• the reference to main international standards for sustainability reporting including the Global Reporting Initiative.