ESG Reporting Frameworks: Types, Differences, Uses, and Examples
ESG (Environmental, Social, and Governance) reporting frameworks guide organisations in measuring and disclosing their sustainability performance. This initiative is not without controversy but it is primarily intended to encourage openness between companies and their stakeholders and foster honest investment decisions. Here’s an overview of the major types:
Global Reporting Initiative (GRI)
Purpose: Standardises sustainability reporting to cover a wide range of topics, including impact on the environment, society, and governance impacts (usually this refers to the impact governance has on the organisation – this can easily be seen as how compliant the organisation is, the cost of compliance or noncompliance).
- Industries/Users: Most widely used across sectors—retail, manufacturing, technology, finance, and NGOs.
- Key Features: Focus on materiality (what matters most to stakeholders).
- Example:
- Company: A clothing retailer reports carbon emissions, labor practices, and supply chain impacts using GRI standards.
- Metrics Reported: Scope 1, 2, and 3 emissions; diversity in hiring; waste management strategies.
Sustainability Accounting Standards Board (SASB)
Purpose: Provides industry-specific metrics to disclose financially material sustainability information.
- Industries/Users: Industry-specific focus, used heavily in finance, oil and gas, healthcare, and technology sectors.
- Key Features: Financially material, concise disclosures for investors.
- Example:
- Company: A renewable energy firm reports metrics on greenhouse gas emissions and energy efficiency under SASB.
- Metrics Reported: Renewable energy capacity, water usage, and regulatory risks.
Task Force on Climate-related Financial Disclosures (TCFD)
Purpose: Guides companies in reporting climate-related financial information on the risks and opportunities to stakeholders, particularly investors. If you are in the financial sector particularly into multinational investment, this be one of your required frameworks.
- Industries/Users: Finance, real estate, energy, and other carbon-intensive industries.
- Key Features: Climate focus, emphasizing governance, strategy, risk management, and metrics.
- Example:
- Company: A real estate developer discloses climate adaptation strategies, such as flood-resistant buildings.
- Metrics Reported: Scenario analysis on climate impacts, asset exposure to extreme weather.
Carbon Disclosure Project (CDP)
Purpose: Helps companies disclose environmental impacts, focusing on carbon, water, and forest management. This one of the oldest framworks and focussed on natural resource use and the environment.
- Industries/Users: Energy, manufacturing, agriculture, and FMCGs.
- Key Features: Questionnaire format; focuses on transparency for investors and supply chain partners.
- Example:
- Company: A global FMCG company reports water usage and carbon footprint using CDP.
- Metrics Reported: Emissions reductions targets, water sourcing risks, deforestation metrics.
Integrated Reporting (IR)
Purpose: Combines financial and ESG data to show how an organization creates value over time.
- Industries/Users: Large corporations, especially in finance, manufacturing, and resource extraction.
- Key Features: Emphasizes connectivity between ESG and financial performance.
- Example:
- Company: A mining company demonstrates how ESG initiatives reduce costs and improve investor confidence.
- Metrics Reported: ESG performance linked to financial outcomes, such as cost reductions or reputational benefits.
UN Sustainable Development Goals (SDGs)
Purpose: A framework to align business operations and reporting with global sustainable development goals. In my opinion this is the easiest to engage with as you can choose one or more goals to achieve and work your way through the rest. It therefore presents a low barrier to enabling discussion and action on sustainability.
- Industries/Users: Cross-sector; companies committed to global sustainability priorities.
- Key Features: High-level alignment with 17 SDGs.
- Example:
- Company: A tech startup aligns projects with SDG 7 (Affordable and Clean Energy).
- Metrics Reported: Number of households accessing renewable energy products.
Key Differences
| Framework | Focus | Target Audience | Reporting Style | Industry Applicability |
| GRI | Broad ESG impacts | Stakeholders | Comprehensive, narrative | Cross-industry |
| SASB | Financial materiality | Investors | Industry-specific metrics | Industry-specific |
| TCFD | Climate risks/opportunities | Investors | Strategic, risk-based | Carbon-intensive sectors |
| CDP | Carbon, water, forests | Investors, supply chain | Questionnaire | Cross-industry |
| IR | ESG + financial value | Investors, stakeholders | Integrated report | Large corporations |
| SDGs | Global sustainability | Governments, NGOs, public | Alignment reporting | Cross-sector |
These frameworks allow businesses to communicate their sustainability progress and attract stakeholders who value transparency, responsibility, and long-term value creation.