There is no doubt that the sustainable reporting landscape is becoming a bit of an alphabet soup and feel a bit overwhelming when trying to understand it all. This article provides a quick review of each of the standards and frameworks to make things a little easier.
An overview of reporting
The sustainable reporting landscape covers reporting standards, principles, frameworks and initiatives. In order to try and categorize it better we have divided the reporting across four areas: investors, corporates, general and targeted (impact, carbon and biodiversity).
Investor reporting
The main drivers within the investor reporting market are those coming out of the EU SFDR, UK SDR and SEC currently. However there are a number of other interesting and relevant entities that it is worth being aware of.
International Finance Corporation principles (website)
The IFC is the largest global development institution focused on the private sector in developing countries. By encouraging growth, IFC advances economic development, creates jobs and improves the lives of people. Part of IFC’s Sustainability Framework , the Performance Standards are directed towards clients, providing guidance on how to identify risks and impacts, and are designed to help avoid, mitigate, and manage risks and impacts as a way of doing business in a sustainable way, including stakeholder engagement and disclosure obligations of the client in relation to project-level activities.
Equator principles (website)
A financial industry benchmark for determining, assessing and managing environmental and social risk in projects. Large infrastructure and industrial Projects can have adverse impacts on people and on the environment. The Equator Principles (EP) are intended to serve as a common baseline and risk management framework for financial institutions to identify, assess and manage environmental and social risks when financing Projects.
UN PRI (website)
The UN Principles for Responsible Investment is a United Nations-supported international network of financial institutions working together to implement its six aspirational principles, often referenced as "the Principles".
GRESB (website)
GRESB is an independent organization providing validated ESG performance data and peer benchmarks for investors and managers to improve business. As real estate investors and property owners utilize ESG reporting, the Global Real Estate Sustainability Benchmark (GRESB) provides transparency and consistency for related standards and reporting.
Corporate reporting
The world of corporate sustainable reporting primarily resolves around the three main standards for corporate sustainable reporting are emerging as (1) the International Sustainability Standards Board (ISSB), (2) the European Sustainability Reporting Standards (ESRS), and (3) the Global Reporting Initiative (GRI). We wrote a detailed blog about these earlier.
General reporting
This category of reporting is a bit of a catch all and is mainly driven by large IGO and NGO institutions. Some of the better know initiatives include the UN sustainable development goals and UN Global Compact.
UN SDGs (website)
The UN Sustainable Development Goals (SDGs) are a collection of seventeen interlinked objectives designed to serve as a "shared blueprint for peace and prosperity for people and the planet, now and into the future." The SDGs are no poverty; zero hunger; good health and well-being; quality education; gender equality; clean water and sanitation; affordable and clean energy; decent work and economic growth; industry, innovation and infrastructure; reduced inequalities; sustainable cities and communities; responsible consumption and production; climate action; life below water; life on land; peace, justice, and strong institutions; and partnerships for the goals.
UN Global Compact (website)
The United Nations Global Compact is a non-binding United Nations pact to get businesses and firms worldwide to adopt sustainable and socially responsible policies, and to report on their implementation. It focusses on 10 key principles around Human Rights, Labor, Environment and Anti-Corruption (link)
WBCSD (website)
World Business Council for Sustainable Development is the premier global, CEO-led community of over 200 of the world’s leading sustainable businesses working collectively to accelerate the system transformations needed for a net-zero, nature positive, and more equitable future.
UNEP FI (website)
The United Nations Environment Program Finance Initiative is a partnership between the United Nations Environment Program and the global financial sector to catalyse action across the financial system to align economies with sustainable development
Targeted reporting
Increasingly there are more and more initiatives that target specific issues of consideration. Perhaps the three that have gained the most notoriety are impact, carbon and biodiversity.
IRIS+ Metrics (website)
IRIS metrics are designed to measure the social, environmental and financial performance of an investment. The Global Impact Investing Network is the global champion of impact investing, dedicated to increasing its scale and effectiveness around the world (website) and responsible for creating the IRIS metrics. IRIS+ is the generally accepted impact accounting system that leading impact investors use to measure, manage, and optimize their impact.
GHG Protocol (website)
Greenhouse Gas Protocol provides standards and tools that help countries and cities track progress toward climate goals.
SBTi (website)
The Science Based Targets initiative (SBTi) drives ambitious climate action in the private sector by enabling organizations to set science-based emissions reduction targets.
PCAF (website)
Partnership for Carbon Accounting Financials (PCAF) is a global partnership of financial institutions that work together to develop and implement a harmonized approach to assess and disclose the greenhouse gas (GHG) emissions associated with their loans and investments.
TNFD (website)
The market-led, science-based Taskforce on Nature-related Financial Disclosure (TNFD) framework will enable companies and financial institutions to integrate nature into decision making.
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