3.4 Other relevant reporting frameworks and standards

Sustainability reporting frameworks help companies communicate their environmental, social, and governance performance. The Global Reporting Initiative, Sustainability Accounting Standards Board, and International Integrated Reporting Council offer different approaches to disclosure, catering to various stakeholder needs and industry-specific issues.

Companies must carefully select frameworks based on their industry, stakeholder expectations, and sustainability strategy. Integrating multiple frameworks can provide a comprehensive view of a company's sustainability efforts, combining broad-based standards with industry-specific metrics and principles-based commitments.

Sustainability Reporting Frameworks

Global Reporting Initiative (GRI) Standards

• Provide a comprehensive framework for sustainability reporting
• Focus on economic, environmental, and social impacts
• Most widely used sustainability reporting framework
• Applicable to all industries
• Emphasis on stakeholder engagement and materiality assessment

Sustainability Accounting Standards Board (SASB) Standards

• Offer industry-specific sustainability accounting standards
• Help companies disclose financially material ESG information to investors
• Designed to assist companies in communicating sustainability information to investors
• Focus on industry-specific issues and metrics

International Integrated Reporting Council (IIRC) Framework

• Promotes integrated reporting
• Connects financial and non-financial information to demonstrate value creation over time
• Emphasizes the connection between financial and non-financial information
• Promotes a holistic view of value creation
• Encourages the integration of sustainability into core business strategy

Climate Disclosure Standards Board (CDSB) Framework

• Provides guidance on incorporating climate change-related information into mainstream financial reporting
• Specifically focused on climate change-related disclosures
• Assists companies in integrating climate change information into financial reporting

United Nations Global Compact (UNGC)

• Encourages companies to align their strategies and operations with ten universal principles
• Covers areas of human rights, labor, environment, and anti-corruption
• Principles-based initiative
• Promotes alignment of company strategies with universal principles
• Focuses on high-level commitment and progress rather than detailed disclosures

CDP (formerly the Carbon Disclosure Project)

• Provides a platform for companies to disclose their environmental impacts
• Focuses on climate change, water security, and deforestation
• Widely used by investors to assess environmental risks and opportunities
• Enables companies to disclose standardized and comparable environmental data

Framework Features and Differences

Scope and Focus

• GRI Standards: Comprehensive, applicable to all industries, focus on stakeholder engagement and materiality
• SASB Standards: Industry-specific, focus on financially material ESG information for investors
• IIRC Framework: Connects financial and non-financial information, holistic view of value creation
• CDSB Framework: Climate change-related disclosures, integration into mainstream financial reporting
• UNGC: Principles-based, high-level commitment and progress alignment
• CDP: Environmental impacts (climate change, water security, deforestation), standardized data for investors

Target Audience

• GRI Standards: Broad range of stakeholders (investors, employees, customers, communities)
• SASB Standards: Primarily investors and financial stakeholders
• IIRC Framework: Investors and other stakeholders interested in integrated reporting
• CDSB Framework: Investors and stakeholders focused on climate change risks and opportunities
• UNGC: Stakeholders interested in company alignment with universal principles
• CDP: Investors and stakeholders assessing environmental risks and opportunities

Framework Selection for Companies

Industry and Sector-Specific Issues

• Consider the company's industry and sector-specific sustainability issues
• Select a framework that provides relevant guidance (e.g., SASB for industry-specific metrics)
• Align reporting with industry peers and best practices

Stakeholder Information Needs

• Assess the company's key stakeholders and their information needs
• Choose a framework that caters to the target audience (e.g., GRI for broad stakeholders, SASB for investors)
• Engage with stakeholders to understand their expectations and preferences

Existing Reporting Practices and Resources

• Evaluate the company's current reporting practices and available resources
• Determine the feasibility of adopting a particular framework or set of standards
• Consider the time, effort, and cost involved in implementing a new reporting framework

Alignment with Sustainability Strategy

• Align the chosen reporting framework with the company's sustainability strategy, goals, and targets
• Ensure the framework supports the communication of the company's sustainability performance and progress
• Maintain coherence and relevance between the reporting framework and sustainability initiatives

Regulatory Environment

• Consider the regulatory environment and any mandatory reporting requirements
• Ensure compliance with local, national, or international reporting regulations
• Align reporting with frameworks recognized or required by regulatory bodies

Stakeholder Engagement

• Engage with stakeholders to gather feedback on their expectations and preferences
• Conduct stakeholder consultations or surveys to inform the selection of reporting frameworks
• Communicate the rationale behind the chosen framework to stakeholders

Integrating Multiple Frameworks

Mapping Overlaps and Complementarities

• Identify overlaps and complementarities between different reporting frameworks
• Map the common disclosures and indicators across frameworks
• Determine areas where frameworks can be integrated or aligned

Developing a Materiality Matrix

• Incorporate material topics identified through various frameworks
• Consider the importance of topics to stakeholders and their impact on the company's value creation
• Prioritize and visualize material topics in a matrix format

Using GRI Standards as a Foundation

• Utilize GRI Standards as a comprehensive foundation for the sustainability report
• Supplement GRI disclosures with industry-specific metrics from SASB or other relevant frameworks
• Ensure consistency and comparability with the GRI framework

Integrating IIRC Principles

• Apply the principles of integrated reporting from the IIRC Framework
• Demonstrate the connectivity between financial and non-financial information
• Highlight the company's value creation process and business model

Incorporating CDSB Disclosures

• Align climate change-related disclosures with the CDSB Framework
• Provide a comprehensive picture of the company's environmental impacts and risks
• Integrate climate-related information into mainstream financial reporting

Referencing UNGC Commitment

• Reference the company's commitment to the UNGC principles
• Report on progress made in aligning strategies and operations with these principles
• Demonstrate the company's contribution to sustainable development goals

Disclosing through CDP Platform

• Disclose environmental information through the CDP platform
• Provide stakeholders with standardized and comparable data on climate change, water security, and deforestation
• Enhance transparency and credibility of environmental disclosures