Investors, lenders, customers and regulators increasingly ask organizations to report on environmental, social and governance (ESG) performance. Two frameworks dominate.
GRI Standards
The Global Reporting Initiative focuses on an organization's impacts on the economy, environment and people. It suits stakeholders who want to understand those impacts, and it is the most widely used framework worldwide.
ISSB Standards (IFRS S1 and S2)
The International Sustainability Standards Board focuses on sustainability-related risks and opportunities that affect enterprise value. IFRS S2 covers climate, including greenhouse gas emissions. Several jurisdictions are adopting ISSB-based requirements.
How to start
- Run a materiality assessment with stakeholders
- Choose the framework your main audience expects
- Define KPIs, owners and data sources
- Build a baseline year, including energy and emissions data
- Write the report, and prepare for assurance in later years
Common pitfalls
Reporting without a strategy behind it, collecting data in spreadsheets with no controls, and claims that cannot be evidenced. Credible reporting starts with credible data.
