A high-powered ecosystem of organizations has evolved to meet these various information needs. Disclosure standards and frameworks are the foundation of this ecosystem. They facilitate the disclosure of comparable, consistent, and reliable sustainability-related information. Using this information, data providers and rating agencies can build tools, analytics, and resources for the capital markets.    

Companies need to act now to ensure they’re ready for the changes ahead. The first step should be assessing which new requirements impact on your operations and determining what is material. These should be followed by a relentless focus on data collection – ensuring you’re monitoring all material aspects of your business and turning that data into insights that can assist with reporting.    

Companies can then use this data to develop a strategic roadmap, plotting a more sustainable, transparent route ahead that factors in any potential risks or opportunities for growth. In addition, it is not just a matter of setting up a new ESG reporting process, but also about preparing for assurance on ESG reporting under the new requirements.   

For leaders, seek advice from experts, convene and plan. The crises driving the need for changes to sustainability reporting show no sign of abating any time soon, so further mandatory regulation is inevitable. It’s an opportunity for the business community to take a leading role in driving positive change.   

 Disclosure is at the core of ESG issues. While what encompasses ESG is for a different discussion, assuming the “what” is determined, the difficult question for companies then becomes “how” to disclose their ESG data. Specifically, what standards and frameworks to use and whether the metrics used adequately represent an individual company’s assessment of relevant disclosure material?    

 

SASB has also collaborated with GRI on a guide for companies to disclose under both standards. The guide focuses on the similarities and differences in their individual reporting standards including materiality, scope of disclosure, intended audiences, and their standard setting process.

Compiling financial and non-financial data to share your ESG performance with stakeholders in an auditable report is complex and need highly specialized expertise.