Annual impact reports used to feel optional and easy to put off. Today, more companies are choosing to publish them because stakeholders want to see what businesses stand for. An impact report is an honest way to show how a company approaches sustainability, social responsibility and long-term accountability. When done well, it builds trust by turning values into something concrete and measurable.

The High Value of Impact Reports

Annual impact reports do more than exist to satisfy external expectations. When used intentionally, they can support real business goals. Some of the most meaningful ways it creates value include the following:

• Builds trust: Sharing progress, setbacks and outcomes helps companies establish credibility with people who want transparency over surface-level claims. With 49% of investors actively gathering impact data across multiple areas and 58% reviewing that information against past performance and stated goals, consistent reporting is becoming an expected part of credibility.
• Attracts and retains talent: Impact reports can reinforce that a company’s values show up in action, which matters to people who want their work to align with ethical and social priorities. 
• Supports internal progress: Pulling impact data together often reveals patterns that are not obvious day to day. These insights give teams clearer ideas of where they may need to make adjustments or new goals.
• Keeps pace with expectations: As accountability becomes more visible across industries, impact reporting helps organizations respond to growing stakeholder scrutiny without relying on vague claims. 

The Difference Between Credibility and Performative Reporting

Impact reports tend to fall into one of two categories — those that build real credibility and those that feel more performative than practical. The difference comes down to substance. Credible reports have clear data — metrics that show progress over time rather than vague claims about commitment or values. Quantifiable results give readers something tangible to look at and evaluate. They signal that the company is tracking its impact with intention, not trying to tell a good story.

Equally important is tone. Reports that acknowledge progress and shortcomings feel more trustworthy than those that focus only on wins. Being up front about challenges, missed targets or areas still under development shows maturity and realism, especially to investors who understand that change takes time. 

In many cases, third-party audits, certifications or external benchmarks can further strengthen credibility by showing that the data was reviewed beyond the organization itself.

Design also plays an important role. From clean layouts to plain language, a clear design can make complex information easier to understand and harder to dismiss. When data, honesty and accessibility are at work, an impact report feels more like an open record of progress than a branding exercise.

3 Types of Impact Reports, With Real-World Examples

Impact reports can vary, and companies often tailor them based on what they want to measure and improve. Some focus heavily on environmental progress, while others center on people, culture or broader social responsibility. Understanding the different types can make it easier to decide which approach aligns best with a company’s goals and stakeholder expectations.

1. Diversity, Equity and Inclusion Reports

Diversity, equity and inclusion (DEI) reports show how a company’s workforce and culture reflect its commitments to representation, fairness and belonging. These reports often include data about gender and racial or ethnic composition, hiring trends, leadership diversity, retention and promotion patterns, and initiatives made to foster inclusive environments. Because DEI efforts touch on quantitative outcomes and organizational culture, the reports typically include hard numbers with narrative context about programs, challenges and future goals.

The New York Times has been among the publishers to share its DEI data publicly, offering insights into its workforce composition and how it is evolving. For example, in its most recent disclosures, 54% of the U.S. staff were women, and the company noted incremental increases in leadership diversity and representation among new hires. It also acknowledged that overall racial and ethnic diversity has changed more slowly. 

This kind of reporting helps signal to readers where the organization is making progress and where there is still work to do.

2. Sustainability Reports

Sustainability reports focus on how a company’s operations affect the environment, society and economic systems. These reports pull data on key environmental metrics, such as carbon emissions, energy use, waste and water management, as well as social factors, including labor practices and governance structures. The goal of these reports is to create a complete picture of how companies are addressing sustainability-related challenges and opportunities, helping stakeholders understand performance and intent.

The company Viaflex offers a great example. Its sustainability impact reporting shows how manufacturers are approaching ESG transparency. In its 2024 Sustainability and Impact Report, the company outlines how environmental considerations are integrated into daily operations, including responsible manufacturing practices, workplace safety and long-term risk management. 

The report balances operational detail with sustainability goals, helping readers understand what Viaflex is prioritizing and how those priorities connect to its business model. By clearly organizing ESG topics and tying them back to measurable actions, Viaflex’s report shows how sustainability reporting can feel structured, accessible and grounded in real operations. 

3. Community Impact Reports

Community impact reports provide insight on how a company’s work affects the places where people live and work — often through partnerships, philanthropy, volunteerism and product-based support in response to local needs. These reports highlight how businesses use their resources and networks to contribute beyond their core operations, whether that is through basic need support, disaster relief, education programs or long-term community partnerships that uplift underserved groups. 

The 2024 Citizenship Report from industry giant Procter & Gamble (P&G) provides an example of this kind of reporting. It shows how community engagement is woven into its broader citizenship strategy. The report highlights initiatives like its Children’s Safe Drinking Water program, which uses P&G’s water purification technology to deliver 23 billion liters of clean drinking water to families in more than 100 countries. 

Tide Loads of Hope also provides free laundry services and showers to families affected by natural disasters across the U.S. The report also highlights employee volunteer efforts, such as hygiene kit packing with emergency relief partners and skills-based volunteering through P&G Gives Back programs in Canada. By tying specific actions to real community needs, P&G’s report shows how community impact reporting can demonstrate how support is delivered on the ground.

How to Start Publishing Annual Impact Reports

Small businesses only need to start with a few small steps to create an effective impact report. They must focus on what is realistic, relevant and genuinely reflective of how the company operates:

• Start where you are: Focus first on the areas of impact that are most critical to your business, whether that is environmental practices, employee well-being or community involvement. It is better to report clearly on a few core areas than to stretch completeness too early.
• Set clear goals: Decide what you want the report to accomplish. Is it improving transparency, tracking progress over time or aligning teams around shared priorities? Clear goals help shape what data you collect and how you present it.
• Involve your team: Impact reporting works best as a collaborative effort. Bringing in perspectives from operations, HR, leadership and even frontline employees can surface insights that leadership alone may miss.
• Tell a compelling story: Data is crucial, but context makes it resonate. Weaving numbers into real examples and clear language makes reports feel more human, especially since around 86% of consumers say authenticity plays a role in their purchasing decisions. Sincerity can be just as important as structure.

Turning Impact Into Ongoing Accountability

Annual impact reports have become an excellent way for companies to show how their values turn into action. When done thoughtfully, they build trust, clarify progress and hold organizations accountable to the people they serve.