Frameworks

Environmental
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Frameworks and Standards
March 11, 2023

An example of an ESG (Environmental, Social, and Governance) framework is the United Nations' Principles for Responsible Investment (PRI). The PRI is a set of six principles that provide a framework for investors to integrate ESG factors into their investment decision-making processes. The six principles are:

  1. We will incorporate ESG issues into investment analysis and decision-making processes.
  2. We will be active owners and incorporate ESG issues into our ownership policies and practices.
  3. We will seek appropriate disclosure on ESG issues by the entities in which we invest.
  4. We will promote acceptance and implementation of the principles within the investment industry.
  5. We will work together to enhance our effectiveness in implementing the principles.
  6. We will report on our activities and progress towards implementing the principles.

The PRI framework provides a common language and understanding for investors to engage with companies on ESG issues and to assess the ESG risks and opportunities of their investment portfolios. By adhering to the principles, investors can demonstrate their commitment to responsible investment and contribute to a more sustainable global financial system.

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Frameworks and Standards

CSRD Permitted Reporting Exemptions

Under the Corporate Sustainability Reporting Directive (CSRD), companies can have certain exemptions and flexibilities. These exemptions are designed to reduce the reporting burden for specific organizations and circumstances while ensuring transparency and compliance with the overall sustainability framework.
Frameworks and Standards

ISSB

The Trustees of the IFRS Foundation announced the formation of the International Sustainability Standards Board (ISSB) on 3 November 2021 at COP26 in Glasgow, following strong market demand for its establishment. The ISSB is developing—in the public interest—standards that will result in a high-quality, comprehensive global baseline of sustainability disclosures focused on the needs of investors and the financial markets.
Frameworks and Standards

ISSB and SASB

The International Sustainability Standards Board (ISSB) and the Sustainability Accounting Standards Board (SASB) represent complementary facets of the global effort to standardize sustainability reporting. The ISSB provides a global baseline for sustainability and climate-related disclosures through its S1 and S2 standards, focusing on general sustainability issues and specific climate impacts, respectively. These standards aim to enhance transparency, consistency, and comparability in reporting across all sectors. SASB, now integrated under the IFRS Foundation alongside ISSB, complements this by offering industry-specific frameworks that identify material sustainability issues relevant to different sectors, providing detailed metrics for companies to measure and report their sustainability performance. Together, ISSB's broad principles and SASB's detailed industry guidance aim to streamline sustainability reporting, making it more relevant and actionable for stakeholders worldwide.
Frameworks and Standards

TCFD

The Task Force on Climate-related Financial Disclosures was created in late 2015 to help identify information needed by the financial sector to appropriately assess and price climate-related risks.
Frameworks and Standards

SASB

SASB Standards guide the disclosure of financially material sustainability information by companies to their investors.
Frameworks and Standards

IFRS S1

IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information provides a set of disclosure requirements designed to enable companies to communicate to investors about the sustainability-related risks and opportunities they face over the short, medium, and long term.