Sustainability Reporting Standards

ESG
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Frameworks and Standards
March 11, 2023

ESG (Environmental, Social, and Governance) standards are a set of criteria used by investors and other stakeholders to evaluate a company's sustainability and social responsibility practices. These standards provide a framework for assessing a company's performance on a range of ESG issues, including climate change, labor practices, human rights, board diversity, and business ethics.

ESG standards are typically designed to be comprehensive and forward-looking, taking into account a company's current ESG performance as well as its potential future impact. Some ESG standards are industry-specific, recognizing that different industries may face different ESG challenges and opportunities. Others are designed to be cross-sectoral, applying to companies across all industries.

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Frameworks and Standards

Frameworks

A framework is a set of guidelines, principles, or best practices that provide a general structure or approach for achieving a specific goal or objective.
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.