What is an ESG reporting framework?
ESG reporting frameworks refer to guidelines, principles, or standards organizations use to report on their environmental, social, and governance (ESG) performance. These frameworks are designed to help companies disclose their ESG activities and performance in a consistent, comparable, and reliable way, allowing investors and stakeholders to make informed decisions about the company's sustainability practices.
Carbon Disclosure Project (CDP)
The Carbon Disclosure Project (CDP) is a non-profit organization encouraging companies and governments to disclose their environmental impact, especially greenhouse gas emissions and climate change strategies.
The CDP analyzes this data and publishes reports that help organizations reduce their environmental impact.
Corporate Sustainability Reporting Directive (CSRD)
The CSRD stands for Corporate Sustainability Reporting Directive, a proposed legislative framework by the European Union (E.U.) that aims to improve the transparency and consistency of sustainability reporting by companies.
The objective is to provide investors, stakeholders, and the public with more reliable and comparable information on the sustainability performance of companies.
The CSRD would apply to large companies and listed companies with more than 250 employees operating in the EU, and it would require them to disclose information on their sustainability policies, risks, and outcomes in a standardized format.
ENERGY STAR
The Energy Star reporting framework is a voluntary program developed by the U.S. Environmental Protection Agency (EPA) to reduce greenhouse gas emissions and promote energy efficiency by encouraging energy-efficient products and practices. The Energy Star label is given to products and buildings that meet the EPA's specific energy efficiency standards.
In addition, the Energy Star program also offers training and technical assistance to help organizations improve their energy efficiency and reduce their carbon footprint.
GRESB
GRESB is a global tool to assess the sustainability performance of real estate and infrastructure portfolios and assets worldwide.
Assessment participants receive comparative business intelligence on where they stand against their peers, a roadmap with actions to improve their ESG performance, and a communication platform to engage with investors.
Investors use the ESG data and GRESB analytical tools to improve the sustainability performance of their investment portfolios, engage with managers and prepare for increasingly rigorous ESG obligations.
Global Reporting Initiative (GRI)
GRI is a globally applicable guidance framework that provides standards detailing approaches to materiality, management reporting, and disclosure for a comprehensive range of sustainability issues.
Every organization that reports under the GRI framework uses the three universal standards. An organization also chooses from the topic-specific standards to report on its material topics: economic, environmental, or social.
Value Reporting Foundation (VRF)
The Value Reporting Foundation (VRF) is a new organization that combines two leading sustainability reporting organizations, the Sustainability Accounting Standards Board (SASB) and the International Integrated Reporting Council (IIRC). The VRF provides a framework for companies to report their sustainability performance in a standardized and comparable way.
The SASB develops industry-specific sustainability accounting standards, while the IIRC focuses on integrated reporting, which combines financial and non-financial information.
NGER
The NGER Scheme is the Australian national framework for reporting and disseminating company information about GHG emissions, energy production, and energy consumption.
The NGER Scheme collects emissions-related data about GHGs such as carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), sulfur hexafluoride (SF6) and specified kinds of hydrofluorocarbons and perfluorocarbons.
Streamlined Energy and Carbon Reporting (SECR)
Streamlined Energy and Carbon Reporting (SECR) is a U.K. government policy that requires large organizations to report on their energy use, greenhouse gas emissions, and energy efficiency measures.
SECR aims to increase transparency and accountability on energy and carbon emissions, encouraging companies to improve their energy efficiency and reduce their carbon footprint.
Task Force on Climate-related Financial Disclosures (TCFD)
The Task Force on Climate-related Financial Disclosures (TCFD) provides recommendations for how companies can disclose information on the risks and opportunities they face about climate change.
The TCFD recommendations focus on the following four areas:
- Governance
- Strategy
- Risk Management
- Metrics and Targets
Non-Financial Reporting Directive (NFRD)
The Non-Financial Reporting Directive (NFRD) is a European Union (E.U.) legislative framework that requires large E.U. companies to disclose certain non-financial information related to their environmental, social, and governance (ESG) performance.
The NFRD requires large EU companies to report on a range of non-financial issues, including their environmental impact, social and employee-related issues, human rights, and anti-corruption policies.
Sustainable Finance Disclosure Regulation (SFDR)
The Sustainable Finance Disclosure Regulation (SFDR) is a set of disclosure requirements introduced by the European Union (E.U.) to promote sustainable investment practices and increase transparency in environmental, social, and governance (ESG) information disclosed to investors.
The Sustainable Finance Disclosure Regulation (SFDR) applies to financial market participants (FMPs) and financial advisers (FAs) operating in the European Union (EU) who offer financial products or services.
Science Based Targets Initiative (SBTi)
The Science Based Targets Initiative (SBTi) collaborates with several organizations to encourage companies to set science-based targets for reducing their greenhouse gas (GHG) emissions.
Companies must set reduction targets for their scope 1 and 2 emissions for the next 5-15 years that are consistent with a temperature rise below 1.5°C compared to pre-industrial levels.
International Sustainability Standards Board (ISSB)
The International Financial Reporting Standards Foundation's (IFRS) new global sustainability and climate disclosure standards will be practical as of January 2024, according to an announcement by the IFRS's International Sustainability Standards Board (ISSB).
The ISSB is a global initiative to create a comprehensive set of sustainability reporting standards to guide companies in disclosing their environmental, social, and governance (ESG) impacts.
National Australian Built Environment Rating System (NABERS AU)
NABERS AU (National Australian Built Environment Rating System) is a national system used in Australia to measure and rate the environmental performance of buildings. It measures the energy efficiency, water usage, waste management, indoor environment quality, and greenhouse gas emissions of buildings and provides a rating from one to six stars.
The rating system applies to different types of buildings and is mandatory for some commercial offices over 1,000 square meters as part of the Commercial Building Disclosure program.