Sustainability and ESG reporting solutions

There are multiple ESG frameworks in various stages of maturity. Some of the most commonly used ESG frameworks include:

• IFRS Sustainability Disclosure Standards, developed by the International Sustainability Standards Board (ISSB), is a set of disclosure requirements designed to enable companies to communicate to investors about the sustainability-related risks and opportunities they face over the short, medium, and long term. The standard builds on and will supersede the SASB standards (Sustainability and Accounting Standards Board) and the CDSB Framework (Climate Disclosure Standards Board), which form the basis for the TCFD recommendations.

• Task Force on Climate-related Financial Disclosures (TCFD) was created by the Financial Stability Board to provide recommendations on the kind of information that companies should provide to help investors, lenders, and insurers accurately assess and price risks related to climate change. Several countries have already mandated TCFD reporting as a risk disclosure requirement and several regulations and standards, including the SEC Climate Related Disclosures, ESRS, and ISSB utilize elements of TCFD.

• European Sustainability Reporting Standards (ESRS) is the standardized framework for following the Corporate Sustainability Reporting Directive (CSRD) which is a law that mandates subject companies to report on sustainability. It was created by the European Financial Reporting Advisory Group (EFRAG) and includes the EU Taxonomy. 

• GRI Standards developed by the Global Reporting Initiative enables organizations of all sizes and types, whether public or private, to assess and report their impact on people, environment, and the economy. GRI Standards enables different organizations to share comparable data in a credible way to better inform decisions by policymakers, investors, and other stakeholders.

• CDP (formally known as the Carbon Disclosure Project) is a global non-profit that runs one of the world's largest environmental disclosure systems for companies, investors, cities, and governments. CDP helps organizations assess impacts and take action towards a more sustainable economy. It provides letter-grade reporting on the relevant climate change, water security, and deforestation impacts by companies, cities, and investment portfolios.

• Other notable ESG or sustainability frameworks or regulations include: The Greenhouse Gas Protocol, which developed one of the most widely used carbon accounting standards and coined methods such as Scope 1, 2 and 3 emissions; and along with the anticipated SEC requirements, ESG-related disclosures from companies will be required under EU Taxonomy and the Sustainable Finance Disclosure Regulation (SFDR), which includes CSRD.