Frameworks and Guidance:
Frameworks and guidance are extremely useful in making aspects of reporting comparable and giving corporates invaluable guidance.
There is no doubt that sustainability is a journey hence reporting and respective disclosures are also going to gradually improve overtime.
Alphabet Soup:
This blog seeks to briefly summarize the main sustainability frameworks as an easy reference and to help unpack this alphabet soup.
The bulk of this alphabet soup is very useful, we just need to know how to navigate it and which aspects to use to support an individual company.
Further Consolidation Coming:
Overall, we expect to see greater harmonization of sustainability frameworks and standards going forward. The recently launched ISSB as part of COP 26 is a great example of this.
Furthermore, the establishment of the Value Reporting Foundation which is the new organization incorporating SASB and the Integrated Reporting Initiative also supports this trend.
Future Direction:
In the meantime we need to remember that frameworks and guidelines assist various organizations to help structure reporting. Overall, most of the time these should be mutually reinforcing.
No two companies are the same hence it is up to the company and its management to determine what are the most useful frameworks that support the sustainability initiatives for a particular corporate.
It is important to use the most relevant framework and guidelines that assists communication with investors and other stakeholders, sustainability related risks & opportunities plus progress overtime
