With more and more investors focused on sustainability, it’s no surprise that ESG reporting is becoming increasingly important for businesses. But with so many different framework options out there, it can be tough to know where to start. Not to worry—we’re here to help. In this blog post, we’ll give you a rundown of the three most popular ESG reporting frameworks so that you can make an informed decision about which one is right for your business.
The Global Reporting Initiative (GRI)
The Global Reporting Initiative is the most widely-used ESG reporting framework in the world. Launched in 1997, the GRI has since been adopted by over 10,000 organizations in more than 60 countries. One of the things that sets the GRI apart from other frameworks is its focus on materiality—that is, ensuring that businesses only report on those sustainability issues that are actually material to their operations. This helps businesses avoid greenwashing and instead focus on those areas that will have the biggest impact.
The Sustainability Accounting Standards Board (SASB)
The Sustainability Accounting Standards Board is a relatively new player in the ESG reporting space, but it’s already made quite a name for itself. Formed in 2011, SASB focuses on providing industry-specific sustainability accounting standards that help businesses disclose material information to investors. This focus on investors makes SASB a popular choice for publicly-listed companies who want to incorporate ESG into their investor communications.
The Climate Disclosure Standards Board (CDSB)
The Climate Disclosure Standards Board is another youth-oriented organization, having been founded in 2005. As its name suggests, CDSB focuses specifically on climate-related disclosures, making it a good choice for businesses who want to report on their carbon emissions and other climate impacts. CDSB’s framework covers everything from emissions inventories to climate strategy—so whatever your climate disclosure needs may be, CDSB likely has you covered.
ESG reporting is becoming increasingly important for businesses of all sizes around the globe. But with so many different options out there, it can be tough to decide which framework is right for your company. Luckily, we’re here to help. In this blog post, we’ve given you a rundown of three of the most popular ESG reporting frameworks: GRI, SASB, and CDSB. Now all you need to do is decide which one is right for your business!
Align your ESG practices to any of the above frameworks with EmpoweredESG. Learn more here.