Making your operations more sustainable is a challenging but important task. One of the first steps is choosing the right reporting framework for your organization. Selecting the right sustainability reporting standards and frameworks is the determining factor for achieving your sustainability goals.
Sustainability reporting frameworks and standards help turn complex ideas into actionable steps. Sustainability reporting helps guide you in setting priorities and working towards environmental and social impact goals. It also reveals your organization’s positive and negative impacts on the planet, society, and economy.
We will explore the sustainability reporting frameworks that are available and will help you smash your long-term sustainability strategy.
| Name | Type | Purpose | Audience | Focus areas |
Global Reporting Initiative (GRI) Standards | Multiple issue | Assist organisations with comprehensive sustainability reporting on economic, environmental, and social impacts | Multiple stakeholders | ESG |
| Multiple issue | Global baseline for sustainability reporting | Investors, financial stakeholders | ESG | |
| Provide a holistic view of value creation over time | Investors, financial stakeholders, general public | Strategy, governance, performance, prospects, ESG | ||
Carbon Disclosure Project (CDP) | Single issue | Capture environmental performance data, related to greenhouse gas emissions, supply chain, water, forests | Multiple stakeholders | E (Climate, water, forests), G |
 Sustainability Accounting Standards Board (SASB) Standards | Multiple issues | Disclose material sustainability information for specific industries | Investors | ESG (Financially material) |
Task Force on Climate-related Financial Disclosure (TCFD) | Single issue | Encourage firms to align climate-related financial risk disclosures with investor needs | Investors, financial stakeholders | ESG |
ISO 26000 | Multiple issue | Guidance on social responsibility | Multiple stakehoders | ESG (focus on S) |
| Multiple issue | EU-specific sustainability reporting | Multiple stakeholders (EU focus) | ESG |
1. GRI Sustainability Reporting & Standards
The GRI standards are the most widely used framework for sustainability reporting. GRI sustainability reporting offers a comprehensive set of standards and indicators covering various sustainability topics, helping organizations report on their economic, environmental, and social impacts in topic-specific standards. 73% of the world’s 250 largest companies use GRI standards for detailed reporting.
Pros: Comprehensive, widely recognized, encourages stakeholder engagement.
Cons: Can be complex and time-consuming to implement.
2. Sustainability Accounting Standards Board (SASB) Standards
Aligning with the sustainability accounting, SASB assists companies in disclosing relevant ESG and sustainability information to investors and other stakeholders. It focuses on industry-specific reporting; clarifying sustainability metrics that are financially material to investors. Currently, SASB covers sectoral standards for 77 different industries. As of 2023, over 1,350 companies across 69 countries use SASB in their ESG reporting.
Pros: Tailored to specific industries, enhances investor relations and communications.
Cons: Limited to financial materiality, may not cover all sustainability aspects.
3. ISO 26000
While not a reporting standard per se, ISO 26000 guides what social responsibility is and helps organizations translate these principles into globally accepted, effective actions. Used by organizations in over 180 countries, it covers various aspects of corporate sustainability, including human rights, labor practices, and environmental stewardship.
Pros: Comprehensive approach to social responsibility, helps manage and reduce risks.
Cons: Not certifiable standard, may lack specificity for reporting.
4. Task Force on Climate-related Financial Disclosures (TCFD)
It’s becoming increasingly important for emissions reporting and climate reporting. TCFD provides recommendations for companies to disclose climate-related risks and opportunities. It focuses on governance, strategy, risk management, and metrics, aiming to enhance transparency for investors and stakeholders regarding climate-related financial impacts. TCFD is supported by over 3,800 organizations globally, including 1,500+ financial institutions.
Pros: Enhances transparent, focuses on climate-related financial impacts.
Cons: Implementation can be resource-intensive.
5. International Financial Reporting Standards (IFRS) S1 and S2
Issued by the International Sustainability Standards Board (ISSB), ISSB standards set requirements for disclosing sustainability-related financial information and climate-related disclosures, effective from January 2024. The IFRS Foundation’s S1 and S2 standards aim to create a global baseline for sustainability reporting.
Pros: Global baseline for ESG reporting, enhances comparability.
Cons: May require significant changes to existing reporting practices.
6. European Sustainability Reporting Standards (ESRS)
Developed under the Corporate Sustainability Reporting Directive (CSRD), ESRS are EU sustainability reporting standards tailored to EU (European Union) policies and require companies to report their sustainability performance and impacts. They aim to enhance transparency and comparability of the company’s sustainability across EU.
Pros: Promotes transparency and accountability within the EU.
Cons: Compliance can be challenging for non-EU companies.
7. Integrated Reporting Framework (IR)
This framework encourages organizations to provide a holistic view of their strategy, governance, and prospects in the context of their external environment. It is integrating frameworks from both the financial and non-financial reporting, promoting a broader understanding of value creation.
Pros: Integrates financial and non-financial information, enhances stakeholder understanding
Cons: Requires a shift in reporting culture and practices.
8. CDP (formerly Carbon Disclosure Project)
CDP focuses on environmental impacts, particularly related to climate change, water security, and deforestation. Organizations report on sustainability, particularly environmental data, to CDP, which then provides insights to investors and stakeholders about their sustainability efforts. In 2021, over 13,000 companies disclosed their environmental information through CDP, representing 64% of global market capitalization.
Pros: Provides valuable insights for investors and stakeholders.
Cons: Participation can be resource-intensive.
Landscape of sustainability reporting & ESG
The sustainability reporting process is crucial for informed decision-making and transparency. There is no doubt that the landscape of sustainability reporting in 2024 is complex. For that, sustainability managers need to understand key ESG reporting standards. Choosing the right framework is vital for meeting sustainability reporting requirements and stakeholder needs. Sustainability reporting provides insights through Companies use to report through different reporting methods, and the sustainability reporting process helps gather sustainability data.
By using sustainability reporting and rating matrices, firms can boost corporate performance, eventually aiding in the Net Zero transformation.
