How do you adjust ESG reporting for different rules?

1 Know your requirements

The first step to adjust ESG reporting for different rules is to understand what are the mandatory and voluntary requirements that apply to your business. Mandatory requirements are those imposed by laws, regulations or contracts, such as the EU Non-Financial Reporting Directive, the UK Modern Slavery Act or the UN Global Compact. Voluntary requirements are those adopted by your business or requested by your stakeholders, such as the Global Reporting Initiative (GRI), the Sustainability Accounting Standards Board (SASB) or the Task Force on Climate-related Financial Disclosures (TCFD). You should identify and review the relevant requirements for each report and ensure that you comply with them.

2 Choose your framework

The second step to adjust ESG reporting for different rules is to choose a suitable framework or standard that guides your report content, format and quality. A framework or standard is a set of principles, criteria and indicators that define what and how to report on ESG issues. There are many frameworks and standards available, each with different scope, focus and level of detail. Some of the most widely used ones are the GRI Standards, the SASB Standards, the TCFD Recommendations and the Integrated Reporting Framework. You should select a framework or standard that matches your report objectives, audience and requirements, and follow its guidelines and best practices.

3 Align your data

The third step to adjust ESG reporting for different rules is to align your data collection, analysis and presentation processes with the chosen framework or standard. Data is the foundation of ESG reporting, and it should be accurate, reliable, consistent and comparable. You should define your data sources, methods, boundaries and assumptions, and ensure that they are aligned with the framework or standard definitions, metrics and disclosures. You should also use appropriate tools, systems and controls to collect, validate, store and report your data, and avoid duplication, gaps or errors.

4 Communicate your impact

The fourth step to adjust ESG reporting for different rules is to communicate your impact in a clear, concise and compelling way. Impact is the difference that your business makes on the environment, society and governance through its actions and outcomes. You should highlight your impact by using stories, case studies, testimonials and visuals that illustrate your ESG achievements, challenges and aspirations. You should also provide context, balance and transparency to your impact communication, and explain how it relates to your strategy, goals and values.

6 Review and improve

The sixth and final step to adjust ESG reporting for different rules is to review and improve your report quality and performance. You should evaluate your report against the framework or standard requirements, criteria and indicators, and check for completeness, accuracy, relevance and clarity. You should also seek external assurance, verification or certification from independent third parties, such as auditors, consultants or rating agencies, to enhance your report credibility and trustworthiness. You should also monitor and measure your report outcomes, impacts and feedback, and use them to identify your strengths, weaknesses and opportunities for improvement.

7 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?