Far from a buzzword, ESG is fast becoming the standard for businesses to manage and report on their risks. ESG: environmental, social and governance, are essentially the broadest set of factors which can be used to measure a company’s impact in the world. ESG reporting and ratings drive a huge and growing amount of investment.
Deciding to start ESG scoring can seem like a daunting task. But in actual fact, compliance dovetails into ESG reporting in a very meaningful way. Using a particular ESG framework can help to guide your reporting processes, showing you where to look, what to measure, and how to communicate it.
There are many reporting frameworks for ESG. It’s important to note that for the most part, these frameworks are not regulated, but rather set up by independent associations and agencies. Choosing a reporting framework to build an ESG programme is not necessary,
but it can help. Some industries have reporting frameworks that are standard or generally accepted. You can also report on multiple frameworks, or start your ESG process separately before diving into a framework.
Some of the most popular ESG frameworks are the World Economic Forum (WEF), the Global Reporting Initiative, the Sustainability Accounting Standards Board (SASB), the International Integrated Reporting Council (IIRC), the Carbon Disclosure Project (CDP) and the Task Force on Climate-Related Disclosures (TCFD). VinciWorks has created a series of quick start guides to these frameworks.
The Global Reporting Initiative is one of the most widely used ESG frameworks. It started out focused on environmental practises but has since expanded to include governance, human rights and social issues. It was first launched in 2000 and is used by thousands of firms around the world. GRI has over 63,000 reports from companies available. Its advantages include that it’s a good starting point that is good for any size business, any industry, and any jurisdiction. However, it’s not as comprehensive as other frameworks and requires a lot of information to make progress.
Want to learn more and see if GRI might be right for you? Simply click the button below to download VinciWorks’ ESG Guide to GRI – Global Reporting Initiative free of charge.
