Benchmark ESG reporting frameworks require responses to all questions in the framework and typically have a scoring element. Prominent frameworks include:
The CDP is a framework for companies to provide environmental information to their stakeholders, consisting of environmental governance and policy, risks and opportunity management, environmental targets as well as strategy and scenario analysis.
The GRESB is a global tool used primarily by investors to determine the sustainability performance of real estate and infrastructure portfolios and assets worldwide.
Voluntary ESG reporting frameworks allow organizations to select the questions they want to report against. Scoring is usually not included in these frameworks, which include:
The GRI is a globally applicable guidance framework that provides standards detailing approaches to materiality, management reporting and disclosure for a full range of ESG issues. Today, GRI standards provide a roadmap for companies looking to create their own sustainability reports.
Regular ESG reporting helps organizations identify potential risks related to environmental, social, and governance factors, enabling proactive management and mitigation strategies.
Regulatory ESG reporting frameworks are like benchmark frameworks in that all responses are required, but not always scored. These frameworks and reporting requirements are also required by government bodies, and include these notable examples:
The European Union’s CSRD prescribes rules for organizations to report sustainability disclosures across several topics pertaining to environmental and social issues. Companies subject to the CSRD must report according to European Sustainability Reporting Standards (ESRS).
The SFDR aims to standardize the reporting of ESG metrics for financial products and entities within the EU. It does so by mandating that reporters publish a Principal Adverse Impact statement detailing their disclosures. The SFDR will act in concert with the EU taxonomy and the CSRD to form the basis for the EU sustainable finance agenda.