Frameworks
2024
Sustainability and ESG frameworks include a combination of platforms, standards and recommendations that guide companies through the ESG reporting process and shape the reports they produce. Various frameworks are available, each with its own set of KPIs and reporting requirements or guidelines. However, many of them are now integrated or aligned and can be used together. This is partly the result of ongoing efforts to consolidate and unify what is often referred to as an alphabet soup of disparate reporting frameworks.
The Global Reporting Initiative (GRI)
Developed under the Global Reporting Initiative (GRI), they include sets of universal, sector-specific and topic-based standards for sustainability reporting on economic, environmental and social factors. The GRI published the first version as guidelines in 2000.
SASB Standards
Released in 2018, they provide specifications for the disclosure of financially significant sustainability information that are tailored for 77 industries. The SASB standards were consolidated into the IFRS Foundation in 2022 and are now overseen by the ISSB.
Task Force on Climate-Related Financial Disclousers (TCFD)
Its aim is to support the publication of information related to climate change. Risk assessment is particularly important for the global financial market. The TCFD framework was created by the Financial Stability Board and contributes to a better understanding of the significant risks associated with climate change.
CDP (former Carbon Disclosure Project)
CDP, founded in 2000 as the Carbon Disclosure Project and now known only by its acronym, operates a system for disclosing information about business risks and opportunities related to climate change, water security and deforestation. It then awards companies a point score in each area that can be seen by various stakeholders. Previously, there were three questionnaires on different topics. CDP merged them in 2024, but companies will still receive separate scores. The Integrated Questionnaire is also now aligned with the IFRS Climate Disclosure Standard, which provides the basis for the CDP's climate-related questions.
Greenhouse Gas Protocol (GHG Protocol)
The Greenhouse Gas Protocol establishes a comprehensive, globally standardized framework for measuring and managing greenhouse gas (GHG) emissions from private and public sector operations, value chains and mitigation measures.
International Financial Reporting Standard 1 a 2 (IFRS)
These are a pair of standards that cover the disclosure of financial information related to sustainability and information about climate-related risks and opportunities. They were first released in mid-2023 and are being developed by the International Council on Sustainability Standards. The ISSB was established in 2021 by the International Financial Reporting Standards (IFRS) Foundation to create a single set of standards for the disclosure of sustainability information. In line with this objective, IFRS standards build on existing SASB standards (listed below) and incorporate elements of other reporting guidelines and frameworks. The ISSB is also exploring possible standards on biodiversity and human capital issues involving internal employees and those of suppliers and other business partners.
TNFD recommendations
Modeled after the TCFD guidelines, it contains 14 recommendations on the disclosure of financial information related to problems of nature and biodiversity. In September 2023, they were published by the Financial Working Group nature related posting. The TNFD, which was created in 2021, also provided guidance on implementation. The ISSB is considering how it can build on the recommendations under a potential new one of the IFRS standard on disclosure of biodiversity information.
https://tnfd.global/recommendations-of-the-tnfd/