What is ESG and What to Disclose?

Jan 28

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What is ESG and What to Disclose?

ESG (Environmental, Social, Governance) means different things to different people. As the ESG landscape evolves, metrics are becoming more standardized to promote transparency and comparability. What are the most widely used ESG disclosure topics for E, S, and G?

What is ESG?

ESG stands for Environmental, Social, and Governance. It is a set of measurable criteria used to evaluate a company’s performance, risks and opportunities in environmental, social, and governance areas. The goal of ESG is to drive long-term value and sustainable growth.

What are the most widely used ESG frameworks?

As ESG reporting evolves, more regulatory bodies and global standards organizations are offering frameworks to guide companies on what to disclose. ESG metrics are becoming increasingly standardized to promote transparency, accountability, and comparability across organizations.

GLOBAL REPORTING INITIATIVE (GRI)

A widely used framework for sustainability reporting across multiple sectors.

CORPORATE SUSTAINABILITY REPORTING DIRECTIVE (CSRD)

The EU’s new directive requiring companies to disclose detailed ESG data.

SUSTAINABILITY ACCOUNTING STANDARDS BOARD (SASB) STANDARDS

Industry-specific ESG standards that focus on financially material metrics most relevant to investors. Swipe to find out what to disclose

INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS) Standards developed by the ISSB for general sustainability (S1) and climate-specific (S2) disclosures.

CARBON DISCLOSURE PROJECT (CDP)

A platform for disclosing environmental impacts related to climate change, water security, and deforestation.

What are the key ESG topics to disclose?

The table below provides an overview of the key disclosure topics for the E, S and G. I included references to the Corporate Sustainability Reporting Directive (CSRD):

! Not every ESG issue is necessarily relevant to the organization. Report on material topics - those that have a significant impact on your business and are of interest to your stakeholders.