Most popular ESG frameworks
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 that can measure a company’s impact on 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 World Economic Forum ESG framework
The World Economic Forum was developed by the big four accounting firms and builds on guidelines from existing frameworks including GRI, SDBs, and SASB. The WEF framework is also known as ‘measuring stakeholder capitalism’ or IBC for the International Business Council. It’s good for companies who don’t easily find themselves in other frameworks, those who are looking for a comprehensive framework to report against, and for businesses who can work with a generic framework and don’t need specialised support. It’s highly adaptable and simple to implement, offering a holistic approach. However, the metrics can be tricky to use and register, the framework is very generic, and additional frameworks like CDP are required for more comprehensive environmental reporting.
World economic forum and ESG
ESG has emerged as a crucial framework for evaluating the sustainability and ethical impact of businesses and investments. The integration of ESG considerations into decision-making processes has gained traction in recent years, with stakeholders demanding greater transparency and accountability from companies.
World economic forum ESG metrics integration
The World Economic Forum (WEF) recognises the significance of Environmental, Social, and Governance (ESG) metrics in assessing sustainability and ethical impact within the global economy. These metrics provide valuable insights into a company’s environmental practices, social responsibilities, and governance structures, enabling stakeholders to make informed decisions. The WEF actively promotes the integration of ESG metrics as a means to drive positive change and foster sustainable business practices worldwide.
World economic forum ESG framework
Want to learn more about the WEF and decide if it might be right for you? Click below to download our ESG Guide to the World Economic Forum.
