How can you align your sustainability reporting framework with global standards?

Sustainability reporting is a key way to communicate your environmental, social and governance (ESG) performance to your stakeholders, investors and customers. But how can you ensure that your reporting framework is aligned with the global standards and best practices that are increasingly expected by the market? In this article, we will explore some of the steps you can take to align your sustainability reporting framework with the most widely used and recognized standards, such as the Global Reporting Initiative (GRI), the Sustainability Accounting Standards Board (SASB), and the Task Force on Climate-related Financial Disclosures (TCFD).

1 Assess your current framework

The first step to align your sustainability reporting framework with global standards is to assess your current framework and identify any gaps or weaknesses. You can use a self-assessment tool, such as the GRI Standards Application Level Check, to evaluate how well your framework meets the criteria of the GRI Standards, which are the most widely adopted sustainability reporting standards in the world. You can also compare your framework with the SASB Standards, which are industry-specific and focus on the material ESG issues that affect financial performance. Additionally, you can check how well your framework addresses the recommendations of the TCFD, which provide guidance on how to disclose climate-related risks and opportunities.

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Matt Bullivant

Head of Sustainability at Athora | Venture Advisor | SME Sustainability Champion | Thought Leader for Decarbonising the Built Environment
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There are numerous standards out there, and while they’re beginning to converge, it’s still best to take a step back and think about what you’re trying to achieve. Who are you trying to satisfy with this reporting? Is it for regulatory compliance? That might tell you the standard. For investors - what are your peer group using for comparison? To best showcase your progress - some standards are slanted more towards E, S or G themes and may be better suited to your objectives. Always worth researching the requirements of each standard and what others have reported for each. Doesn’t mean you have to follow the herd, but it helps to understand best practice and the reasons why others may have gone about it in a particular way.

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2 Define your material topics

The next step to align your sustainability reporting framework with global standards is to define your material topics, which are the ESG issues that are most relevant and significant for your business and your stakeholders. You can use a materiality analysis, which is a process of identifying, prioritizing and validating your material topics based on stakeholder engagement, data analysis and benchmarking. You can also consult the GRI Standards, the SASB Standards and the TCFD recommendations to understand what topics are considered material for your sector and how to report on them.

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Matt Bullivant

Head of Sustainability at Athora | Venture Advisor | SME Sustainability Champion | Thought Leader for Decarbonising the Built Environment
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Worth remembering that you don’t have to be market leading across every possible topic - there are far too many sustainable themes to be the best at them all! It’s perfectly ok to acknowledge some while placing greater emphasis on others that play more to your strengths or have particular relevance to your business. From a materiality perspective, you can go beyond considering what each of your stakeholders prioritises to thinking about where you can have greatest impact. There may be good opportunities to pair commercial value with sustainable outcomes to uncover by doing so.

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3 Choose your indicators and metrics

The third step to align your sustainability reporting framework with global standards is to choose your indicators and metrics, which are the quantitative or qualitative measures that demonstrate your ESG performance and impact. You can use the GRI Standards, the SASB Standards and the TCFD recommendations to select the indicators and metrics that are relevant and appropriate for your material topics and your reporting goals. You can also use data analysis tools, such as the GRI Data Partner Program, to collect, verify and benchmark your data against your peers and industry averages.

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4 Report and communicate

The final step to align your sustainability reporting framework with global standards is to report and communicate your ESG performance and impact to your stakeholders, investors and customers. You can use the GRI Standards, the SASB Standards and the TCFD recommendations to structure and format your report, as well as to ensure that it is transparent, consistent and comparable. You can also use communication channels, such as your website, social media, newsletters and events, to share your report and engage with your audience.

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5 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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How can you align your sustainability reporting framework with global standards?

1

2

3

4

5

1 Assess your current framework

2 Define your material topics

3 Choose your indicators and metrics

4 Report and communicate

5 Here’s what else to consider

Environmental Consulting

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How can you align your sustainability reporting framework with global standards?

1

2

3

4

5

1 Assess your current framework

2 Define your material topics

3 Choose your indicators and metrics

4 Report and communicate

5 Here’s what else to consider

Environmental Consulting

Rate this article

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