ESG Reporting: Beyond Corporate Responsibility Theater

Time Investment: 90-120 minutes of reading, research, and analysis

Learning Objectives

By the end of this activity, you will be able to:

Understand what ESG (Environmental, Social, and Governance) reporting entails
Recognize the environmental and social costs embedded in technology supply chains
Distinguish between performative corporate responsibility and authentic commitment
Critically evaluate ESG reports for substance versus public relations

Introduction: The Hidden Costs of Our Digital World

Some of the most pressing challenges facing humanity today include climate change and social inequality. The technology industry—which powers our phones, computers, and the AI systems we increasingly rely on—provides a stark illustration of how these issues intersect with global business practices.

The Material Reality Behind Digital Products

While we interact with sleek devices and seamless digital interfaces, the supply chains that make these technologies possible involve significant environmental damage and human exploitation.

Cobalt: The “Blood Diamond” of Batteries

Every smartphone, laptop, and electric vehicle battery contains cobalt, and the Democratic Republic of Congo possesses over half of the world’s cobalt reserves while producing approximately 74% of global supply. However, this extraction comes at tremendous cost:

Environmental Impact:

Millions of trees have been clear-cut to make way for cobalt mines, creating barren wastelands in areas of once-thriving biodiversity
Toxic dumping devastates landscapes, pollutes water sources, and contaminates crops with high concentrations of cobalt linked to crop and worm deaths
Studies found fish from mining-adjacent lakes contaminated with prominent levels of cobalt, spreading to humans through consumption
The hazy air surrounding mines, full of dust and grit, is toxic to breathe and has been linked to increased risk of birth defects including limb abnormalities and spina bifida

Human Cost:

Artisanal miners work in subhuman, grinding, degrading conditions using pickaxes, shovels, and stretches of rebar to hack at the earth in trenches, pits, and tunnels for the equivalent of just a few dollars a day
Children are trafficked to work in mines, with entire families forced to bring children into toxic pits to dig just to earn an extra fifty cents or dollar a day that could mean the difference between eating or not
Tunnel collapses routinely bury workers alive, including children, in conditions lacking supports, ventilation shafts, or rock bolts

Further Reading:

The Environmental Impacts of Cobalt Mining in Congo by Earth.Org
How ‘modern-day slavery’ in the Congo powers the rechargeable battery economy - NPR interview with Siddharth Kara

AI’s Hidden Workforce

The artificial intelligence systems marketed as cutting-edge automation actually depend on massive amounts of human labor—labor that remains largely invisible and often exploitative.

The Reality of “AI” Work:

Data labelers are the lifeblood of the AI industry, annotating images, video, and text so AI systems can recognize patterns, yet they are often paid very low wages, work in unsafe environments, and lack basic workplace protections
Hourly rates for AI data labelers in Venezuela range from 90 cents to $2, compared to $10-25 per hour in the United States
In the Philippines, workers labeling data for multi-billion dollar companies often earn far below minimum wage, and some labeling providers even resort to child labor
Many data labelers work in overcrowded and dusty environments which pose serious risks to their health, and they often work as independent contractors lacking access to protections such as health care or compensation

The Psychological Toll: Nearly 100 Kenyan data labelers and AI workers who do work for companies like Facebook, Scale AI, and OpenAI published an open letter to US President Joe Biden stating their working conditions amount to modern day slavery. Content moderators who review violent and disturbing material to train AI systems often develop PTSD, depression, and reduced ability to feel empathy.

Further Reading:

The Exploited Labor Behind Artificial Intelligence by NOEMA
The Artificial Intelligence illusion: How invisible workers fuel the “automated” economy by the International Labour Organization
The Silicon Chain: How AI’s Architecture Became a Tool of Extraction via AYLGORITH

What is ESG Reporting?

Given the profound environmental and social impacts embedded in global business operations, ESG reporting has emerged as a framework for measuring and communicating corporate responsibility.

The Three Dimensions

ESG is a set of non-financial measures that contribute directly to an organization’s risk management profile, sustainability development, and corporate social responsibility:

Dimension	Key Areas	Examples
Environmental (E)	Anything that contributes to carbon emissions and climate change, such as energy, water and waste management; ventilation and air quality; materials sourcing; and supply chain management	Carbon footprint reduction, renewable energy adoption, waste management, water conservation, biodiversity protection
Social (S)	Relationships and reputation a company has with its stakeholders, such as employee engagement, diversity and inclusion, health and safety, human rights, and labor practices	Fair wages, safe working conditions, supply chain labor practices, community impact, diversity initiatives
Governance (G)	Internal system of practices, controls and procedures that a company uses to govern itself, such as business model resilience, risk management, legal and regulatory compliance, due diligence, and meeting external stakeholders’ needs	Board accountability, ethical business practices, transparent reporting, anti-corruption measures

Purpose of ESG Reporting

ESG reporting is a type of corporate disclosure that details the environmental, social and governance promises, efforts and progress of an organization, with the purpose of improving investor transparency. These reports shed light on a company’s activities regarding climate change, human rights, executive compensation, and other non-financial factors that affect long-term sustainability and risk.

International Standards

ISO’s ESG Implementation Principles (IWA 48) is a high-level structure and set of principles designed to guide organizations in implementing and embedding ESG practices within their organizational culture, supporting management of ESG performance and facilitating measurement and reporting under existing frameworks.

Key International Frameworks:

ISO IWA 48:2024 - ESG Implementation Principles
IFRS S1 and S2 - Sustainability disclosure standards
UN Sustainable Development Goals (SDGs)

Why Standardization Matters: These principles serve as a universal language for ESG practices, establishing an international reference model that ensures global interoperability and reliability in ESG reporting and practices.

Learn More:

Common Problems: Performative Responsibility

While ESG reporting should drive genuine change, many companies use it primarily for public relations purposes. Understanding the difference between authentic commitment and performative action is critical.

Greenwashing

What is greenwashing?
Greenwashing occurs when companies present themselves as environmentally responsible through marketing and public relations while their actual practices tell a different story. The term plays on “whitewashing”—the practice of glossing over or concealing unpleasant facts.

Common greenwashing tactics:

Making vague environmental claims without specific, measurable commitments
Highlighting minor eco-friendly initiatives while ignoring major environmental harms
Using green imagery and language in marketing while maintaining harmful practices
Focusing on one “green” product line while the majority of business remains unsustainable
Setting distant net-zero targets without concrete interim milestones or plans

Example in technology:
A company might promote its use of recycled materials in device packaging while remaining silent about cobalt mining practices in its battery supply chain, or the e-waste created when devices are designed to be unrepairable and must be replaced frequently.

Virtue Signaling
Public expressions of opinion intended to demonstrate good character or moral correctness, particularly on social and political issues—often without accompanying substantive action. In corporate contexts, this might involve issuing statements supporting social causes while doing nothing to address similar issues within the company’s own operations or supply chain.

Woke-washing / Social-washing
Similar to greenwashing but focused on social justice issues. Companies publicly align themselves with movements for racial justice, gender equality, or LGBTQ+ rights while maintaining discriminatory practices, inequitable pay structures, or exploitative labor conditions.

Diversity Theater
Highly visible diversity initiatives (diverse marketing campaigns, diversity statements, diverse leadership photos) without meaningful changes to hiring practices, workplace culture, advancement opportunities, or pay equity.

Key Vocabulary

Term	Meaning
Greenwashing	Marketing practices that make products, services, or companies appear more environmentally friendly than they actually are
Virtue Signaling	Public expression of opinions intended to demonstrate moral correctness without substantive action
Performative	Actions done primarily for show or appearance rather than genuine commitment
Net Zero	Achieving balance between greenhouse gases emitted and removed from atmosphere
Carbon Offset	Compensating for emissions by funding emission reductions elsewhere (often criticized when used instead of actual emission reduction)
Supply Chain Transparency	Disclosure of where and how products are made, including labor and environmental practices
Scope 1, 2, 3 Emissions	Categories of carbon emissions (direct, indirect from energy, all other indirect including supply chain)

Authentic Responsibility: What Does It Look Like?

Not all ESG reporting is performative. Some organizations genuinely commit to measuring, reporting, and improving their environmental and social impact. Understanding what authentic responsibility looks like helps you evaluate corporate claims critically.

Signs of Authentic Commitment

Specific, Measurable Targets with Accountability

Clear baseline measurements and year-over-year progress data
Third-party verification of claims
Willingness to report setbacks alongside successes
Concrete interim targets, not just distant future goals

Supply Chain Transparency

Public disclosure of suppliers and manufacturing locations
Independent audits of labor and environmental practices
Remediation plans when problems are identified
Direct engagement with workers and affected communities

Investment in Systemic Change

Significant budget allocation to sustainability initiatives
Changes to executive compensation tied to ESG metrics
Industry collaboration to raise standards collectively
Support for policy changes that affect the entire sector

Willingness to Sacrifice Short-Term Profits

Choosing more expensive but ethical suppliers
Investing in circular economy models (repair, reuse, recycling)
Phasing out profitable but harmful products or practices
Declining business that would require compromising values

Real-World Examples to Research

Companies with strong ESG practices (according to various ratings):

Patagonia - Activism, supply chain transparency, repair programs
Interface - Carpet manufacturer pursuing carbon-negative production
Unilever - Comprehensive sustainable living plan with specific targets
Microsoft - Carbon negative by 2030 commitment with detailed roadmap

Important caveat: Even companies with strong reputations have areas where they fall short. Part of authentic responsibility is acknowledging limitations and working to improve rather than claiming perfection.

Questions for Evaluation

When reviewing any company’s ESG claims, ask:

Are metrics specific and measurable? Or vague and aspirational?
Is there independent verification? Or only self-reporting?
Do they report Scope 3 emissions? (These include supply chain impacts—the hardest to measure but often the largest)
How do they handle setbacks? With transparency and corrective action, or silence?
Is progress incremental and consistent? Or do they announce big goals but show little year-over-year change?
Do actions match statements? Or is there a gap between public commitments and actual practice?

Activity: ESG Report Analysis

Your task is to find and critically analyze an actual ESG report from a company, placing it on a spectrum from purely performative to authentically responsible.

Step 1: Select a Company

Choose a company whose ESG report you want to analyze. Consider:

Technology companies (given this week’s focus on tech supply chains):

Apple, Microsoft, Google/Alphabet, Meta/Facebook, Amazon, Samsung, Dell, HP

Other major corporations with public ESG reports:

Nike, Coca-Cola, Walmart, Nestlé, BP, Shell, Toyota, Volkswagen

Companies known for sustainability leadership:

Patagonia, Interface, Ørsted, Unilever, IKEA

Step 2: Find and Review the ESG Report

Where to find reports:

Company website (usually under “Investors,” “Sustainability,” “Corporate Responsibility,” or “ESG”)
Search “[Company name] ESG report 2024” or “sustainability report”
Some companies use different names: “Impact Report,” “Citizenship Report,” “Corporate Responsibility Report”

What to look for as you read:

Executive summary claims
Specific data and metrics
Year-over-year comparisons
Third-party certifications or audits
Supply chain disclosures
Areas where the company acknowledges challenges or failures
Visual design choices (lots of green imagery? happy worker photos?)

Step 3: Analyze and Place on Spectrum

Create a post in the Innovation discussion forum that includes:

Section	What to Include
Company & Report	Name, year, link to report, type of company/industry
Initial Impression	What stood out immediately? Professional design? Specific data? Vague claims?
Strengths	What did the company do well in their reporting? Specific examples with page numbers
Weaknesses	What was missing, vague, or unconvincing? Red flags?
Placement on Spectrum	Where do you place this company? Purely Performative ←→ Authentically Responsible (Provide a score 1-10 or description of position)
Justification	Why did you place them there? What specific evidence supports your assessment?
One Recommendation	What would you advise this company to do to improve their ESG practices or reporting?

Length: 400-600 words total

Step 4: Compare Analyses

After posting, read your classmates’ analyses and consider:

How do different industries approach ESG reporting?
Are there common patterns in performative reporting?
What surprised you about authentic vs. performative practices?
How might your career in language services intersect with ESG reporting?

Connection to Your Field

As future professionals in translation, localization, and interpretation, you will likely encounter ESG reporting in your work:

Translation and localization of ESG reports:

Companies publish ESG reports in multiple languages for global stakeholders
Cultural sensitivity in discussing environmental and social issues varies significantly
Technical terminology requires specialized knowledge
Tone and messaging may need adaptation for different markets

Ethical considerations:

Should translators work on reports they believe are greenwashing?
How do you handle requests to “soften” negative information in translations?
What responsibility do language professionals have in communicating corporate claims?

Supply chain awareness:

Language service companies have their own ESG responsibilities
As contractors or employees, you can ask about working conditions and ethical practices
Understanding ESG helps you evaluate potential employers and clients

Reflection Questions

How did analyzing an actual ESG report change your understanding of corporate responsibility claims?
What role does language play in making greenwashing or virtue signaling effective? How might you resist being complicit in performative reporting?
Given what you’ve learned about cobalt mining and AI labor exploitation, how will this affect your relationship with technology?
If most affordable products depend on exploitative supply chains, what responsibility do individual consumers have? What about businesses? Governments?
In your future career, how might you advocate for more authentic corporate responsibility while working within systems that often prioritize performance over substance?

📥 Download this Content

Find this file on our repo and download it.

🤖 GAI Study Prompts

Copy the downloaded content and try it with these prompts:

“Help me understand the difference between Scope 1, 2, and 3 emissions and why Scope 3 is often excluded from corporate reporting”
“Analyze this excerpt from [company name]’s ESG report for signs of greenwashing or authentic commitment”
“What are the most credible third-party ESG rating systems, and what do they measure?”
“How can I evaluate whether a company’s net-zero commitment is realistic or just marketing?”
“Generate a framework for assessing supply chain transparency in ESG reports”
“What are examples of companies that made genuine sacrifices for sustainability versus those that only made profitable ‘green’ changes?”
“How do cultural differences affect ESG priorities and reporting across different countries?”
“Explain the relationship between ESG investing and actual corporate behavior change”

Next Activity: Future of Work