How many ESG frameworks are there? (2024)

How many ESG frameworks are there?

In fact, Ernst & Young estimates there are over 600 ESG frameworks and standards around the world. Some are specific to certain industries or countries.

Existing ESG Standards & Frameworks

Global Reporting Initiative (GRI) Standards, Task Force on Climate-related Financial Disclosures (TCFD), and SASB Standards are three of the significant ESG standards and frameworks used.

There are 77 different industry-specific SASB Standards.

ESG is a framework that helps stakeholders understand how an organization manages risks and opportunities around sustainability issues. ESG has evolved from other historical movements that focused on health and safety issues, pollution reduction, and corporate philanthropy.

What is an ESG Matrix? An ESG matrix is a table documenting sustainable activities which helps companies measure their environmental, social and governance performance. t provides transparency, it clearly outlines risks (materialities) and defines the opportunities and goals that the company aims to achieve.

GRI provides a framework to support environmental, economic and social reporting, and is a common starting point for businesses launching a new ESG program.

CDP is a popular voluntary reporting framework that companies use to disclose environmental information to their stakeholders (investors, employees, and customers).

While GRI covers the organisation's impact on the economy, the environment and society, SASB is focused on financially material sustainability topics. SASB's more industry-specific framework traditionally catered more to investors.

Strong ESG policies can help companies reduce waste, water and energy costs and drive more strategic resource allocation. Investors are increasingly considering ESG as an essential aspect of the investment process. Consumers are putting more pressure on companies to be more environmentally and socially responsible.

What is the difference between TCFD and SASB?

However, SASB focuses on quantifying and reporting the outward ESG impacts and risks of an organization's performance across 77 different industry standards, while TCFD addresses how climate change might impact the organization's ability to create value. Both TCFD and SASB are focused on financial materiality.

The 3 Pillars of ESG. Successful businesses focus on three core essentials: people, process, and product.

They want to see greater and continued commitment, measurable results, complete transparency, and governance from the enterprises they engage with on issues that matter. And this is what differentiates Corporate Social Responsibility (CSR) from Environment, Social and Governance (ESG) criteria.

www.cdp.net/guidance

In addition to climate change and water, CDP engages with companies on their production and use of forests risk commodities. These are commodities most responsible for deforestation globally. GRI does not cover this area specifically.

ESG - Key Performance Indicators for Sustainable Reporting

Environmental, Social, and Corporate Governance (ESG) refers to the three dimensions for measuring the sustainability impact of an investment in Sika. These criteria help to better determine the future financial performance of companies.

The Global ESG Disclosure Standards for Investment Products are the first global voluntary standards for disclosing how an investment product considers ESG issues in its objectives, investment strategy, and stewardship activities.

In essence, ESG benchmarks provide a way to systematically evaluate the performance of certifications, voluntary standards, companies, or other entities. The goal is to better understand a building's performance, implement various sustainability measures, or to work towards reducing environmental impact.

The International Integrated Reporting Framework is used to accelerate the adoption of integrated reporting across the world with an aim to: Improve the quality of information available to providers of financial capital to enable a more efficient and productive allocation of capital.

The GRI is a global standard for sustainability reporting designed by organizations and investors to measure business performance. The GRI has been adopted as a requirement by leading institutional investors, government regulators and development organizations around the world.

What is the Sasb framework?

The Sustainability Accounting Standards Board (SASB) is an ESG guidance framework that sets standards for the disclosure of financially material sustainability information by companies to their investors.

The TCFD focuses specifically on helping organizations disclose information about the financial impacts related to climate change risks and opportunities; whereas the GRI Standards focus on helping organizations communicate about their impacts (outward) related to climate change and other sustainability topics (e.g., ...

What is the Global Reporting Initiative (GRI) Framework? GRI is probably the most well-recognized sustainability reporting standard. As many as 73% of the world's 250 largest companies complete their annual sustainability reports in accordance with GRI.

The Global Reporting Initiative (GRI) is an international not-for-profit organisation, with a network-based structure. To enable all companies and organisations to report their economic, environmental, social and governance performance, GRI produces free Sustainability Reporting Guidelines.

More than 2,600 organisations have expressed their support for the TCFD recommendations, an increase of over a third since the 2020 status report. These supporters include 1,069 financial institutions, responsible for assets of $194 trillion.

The Financial Stability Board created the Task Force on Climate-related Financial Disclosures (TCFD) to improve and increase reporting of climate-related financial information.

The Sustainable Finance Disclosure Regulation (SFDR) is a European regulation introduced to improve transparency in the market for sustainable investment products, to prevent greenwashing and to increase transparency around sustainability claims made by financial market participants.

Sustainability framework ( SF ) is the most important document for your sustainability strategy or an ESG profile. It defines your vision and strategy, your sustainability goals and objectives, their alignment with Sustainable Development Goals and your key performance indicators (KPIs).

The Sustainability Accounting Standards Board (SASB) is an ESG guidance framework that sets standards for the disclosure of financially material sustainability information by companies to their investors.

Purpose and environmental, social, and governance (ESG) issues represent critical challenges for both boards and executive teams. They have become particularly salient since the COVID-19 pandemic, which has forced corporations to scrutinize their responsibilities and role in society.