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Ashkan Pakseresht

Which standards are commonly used in ESG and sustainability reporting?



Ashkan Pakseresht

In order to effectively prepare a sustainability or ESG report, companies must possess a comprehensive understanding of the essential reporting standards and guidelines that ensure the provision of accurate, consistent, and comparable data.

Below is a list of the main reporting standards and guidelines that can be considered:


  • The Global Reporting Initiative (GRI) has developed a set of guidelines for sustainable development reporting that encompass the triple-bottom-line (people, planet, profit) approach. These guidelines require organizations to report their impact across three categories, providing a comprehensive assessment of their global effects and offering relevant ESG information.

  • The Sustainability Accounting Standards Board (SASB) focuses on delivering financial substantive information primarily relevant to investors. Companies that produce comprehensive reports incorporating financial and ESG data can utilize SASB standards to identify and report material financial information for investors.

  • The Task Force on Climate-Related Financial Disclosures (TCFD), established by the Financial Stability Board (FSB), provides recommendations for climate-related disclosures. These recommendations aim to enhance informed decision-making in investments, credits, and insurance.

  • The Climate Disclosure Standards Board (CDSB) creates a framework that enables the inclusion of environmental information in mainstream reports, such as the 10-K.

  • The International Organization for Standardization (ISO) is an independent international organization comprising national standard bodies. ISO 14001, one of its standards, provides specific guidelines for environmental management systems, offering organizations a framework to enhance their environmental performance and support ESG reporting.

  • The Green Business Bureau (GBB) offers sustainability guidance through its EcoAssessment and EcoPlanner tools. These resources provide organizations with ordered green initiatives based on effort and cost, assisting them in improving their performance from a sustainability and ESG perspective. Achievements are transparently documented in an organization's EcoProfile, providing the necessary information to generate accurate sustainability and ESG reports. GBB also certifies organizations for their sustainability efforts with the Green Seal.

The above frameworks provide support for both sustainability and ESG reporting. It is important to note that these frameworks should not be used exclusively, sacrificing one for the other. Instead, organizations should choose the frameworks that align best with their industry and reporting objectives.

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