ESG Framework

There are multiple ESG frameworks and standards developed globally to help organizations measure, manage, and report their Environmental, Social, and Governance performance. Each framework has a different focus—some are used for disclosure/reporting, others for assessment/scoring, and some for guiding internal practices.

Here’s a detailed overview of the main types of ESG frameworks, categorized by their purpose:

📊 1. Reporting & Disclosure Frameworks

These frameworks help companies structure and publish ESG-related information.

✅ a. GRI – Global Reporting Initiative

  • Focus: Broad ESG reporting, especially social impact.

  • Used by: Companies of all sizes worldwide.

  • Features:

    • Sector-specific standards

    • Stakeholder-focused

    • Most widely used globally

✅ b. SASB – Sustainability Accounting Standards Board

  • Focus: ESG issues that are financially material to investors.

  • Used by: Public companies.

  • Features:

    • Industry-specific metrics (77 industries)

    • Investor-focused

    • Integrates easily into financial filings

✅ c. TCFD – Task Force on Climate-related Financial Disclosures

  • Focus: Climate-related risks and opportunities.

  • Used by: Companies, banks, investors.

  • Features:

    • Scenario analysis

    • Financial impact of climate change

    • Required in some countries (e.g., UK, Japan)

✅ d. CDP – Carbon Disclosure Project

  • Focus: Environmental impact reporting (climate, water, forests).

  • Used by: Companies, cities, and governments.

  • Features:

    • Detailed carbon emission reporting

    • Supply chain data

📐 2. Standardization & Integration Frameworks

These help align or harmonize ESG efforts across various standards.

✅ a. ISSB – International Sustainability Standards Board (by IFRS)

  • Focus: Creating a unified global ESG disclosure baseline.

  • Used by: Companies for global reporting.

  • Features:

    • Combines SASB and TCFD elements

    • Investor-focused

    • Recently launched to reduce fragmentation

✅ b. IIRC – International Integrated Reporting Council

  • Focus: Linking ESG performance with financial reporting.

  • Used by: Companies aiming for “integrated” reports.

  • Features:

    • Combines financial + non-financial metrics

    • Value creation over time

🏢 3. Corporate Frameworks & Initiatives

These are principles and tools that guide how companies design or manage their ESG strategy.

✅ a. UNGC – United Nations Global Compact

  • Focus: Corporate responsibility aligned with UN goals.

  • Used by: Companies that commit to 10 principles.

  • Features:

    • Covers human rights, labor, environment, and anti-corruption

    • Linked to SDGs (Sustainable Development Goals)

✅ b. OECD Guidelines for Multinational Enterprises

  • Focus: Responsible business conduct.

  • Used by: Companies operating internationally.

  • Features:

    • Human rights, labor relations, supply chain

📈 4. ESG Rating Systems

These provide third-party assessments of companies’ ESG performance.

✅ a. MSCI ESG Ratings

  • Ranks companies from AAA to CCC.

  • Covers 37 ESG key issues.

✅ b. Sustainalytics

  • Risk-based ratings.

  • Widely used by asset managers and investors.

✅ c. FTSE4Good / Bloomberg ESG Scores / S&P Global ESG

  • Benchmarks for ESG-conscious investors.

🧭 Summary Table

Framework/StandardTypeFocus Area
GRIReportingAll ESG dimensions
SASBReportingFinancially material ESG
TCFDReportingClimate risks
CDPReportingCarbon, water, forests
ISSBStandardizationGlobal ESG baseline
IIRCIntegrationESG + financials
UNGCPrinciplesEthics & sustainability
MSCI / SustainalyticsRatingESG risk/scoring


ESG Reporting

SG Reporting is the process through which companies disclose information about their Environmental, Social, and Governance (ESG) performance. It shows how a company is managing sustainability risks, opportunities, and impacts related to climate, people, and ethics.

🎯 Purpose of ESG Reporting

PurposeDescription
✅ TransparencyBuilds trust with stakeholders by showing accountability.
📊 Risk ManagementIdentifies ESG risks that could affect business performance.
📈 Investor ConfidenceInvestors use ESG data for responsible investing decisions.
📢 ReputationEnhances brand value and public image.
📑 ComplianceMeets mandatory regulatory requirements in some countries.

🧱 Core Components of an ESG Report

1. Environmental Reporting

  • Carbon emissions (Scope 1, 2, and 3)

  • Energy consumption & efficiency

  • Use of renewable energy

  • Water usage & waste management

  • Biodiversity impact

  • Climate change strategy

2. Social Reporting

  • Workforce diversity & inclusion

  • Labor rights and working conditions

  • Health & safety performance

  • Employee engagement and training

  • Customer data privacy

  • Community involvement & CSR

3. Governance Reporting

  • Board structure and diversity

  • Executive compensation

  • Anti-corruption practices

  • Risk management systems

  • Whistleblower policies

  • ESG-linked performance metrics

📊 Popular ESG Reporting Frameworks

FrameworkFocusKey Feature
GRI (Global Reporting Initiative)Broad ESG topicsStakeholder-focused, widely used
SASB (Sustainability Accounting Standards Board)Financially material ESG issuesSector-specific
TCFD (Task Force on Climate-related Financial Disclosures)Climate-related financial risksScenario analysis
CDPEnvironmental metricsFocus on emissions, water, forests
ISSBGlobal standardizationCombines SASB + TCFD principles

✅ ESG Guidelines Checklist

You can mark each item as ✔️ (Compliant), ❌ (Not Compliant), or ➖ (Not Applicable). Add comments for notes or action plans.

🌱 Environmental (E)

#GuidelineStatusNotes/Actions
1GHG emissions (Scope 1, 2, 3) measured annually✔️/❌/➖
2Targets set for carbon neutrality or net-zero✔️/❌/➖
3Use of renewable energy in operations✔️/❌/➖
4Waste management and recycling programs in place✔️/❌/➖
5Water consumption tracked and minimized✔️/❌/➖
6Environmental Impact Assessments conducted✔️/❌/➖
7Environmental compliance with laws/regulations✔️/❌/➖

🤝 Social (S)

#GuidelineStatusNotes/Actions
1Anti-discrimination and DEI policies implemented✔️/❌/➖
2Safe, healthy, and inclusive work environment✔️/❌/➖
3Fair wages and working hours ensured✔️/❌/➖
4Training and career development offered✔️/❌/➖
5Human rights upheld in supply chain✔️/❌/➖
6Community engagement/CSR initiatives active✔️/❌/➖
7Customer data privacy and protection ensured✔️/❌/➖

🏛️ Governance (G)

#GuidelineStatusNotes/Actions
1Board of directors is diverse and independent✔️/❌/➖
2Anti-bribery and corruption policies in place✔️/❌/➖
3Whistleblower policy and anonymous reporting✔️/❌/➖
4Executive compensation linked to ESG goals✔️/❌/➖
5ESG metrics reviewed at board level✔️/❌/➖
6Annual ESG report published✔️/❌/➖
7Regular internal and external ESG audits✔️/❌/➖

📋 Additional Sections

#General ImplementationStatusNotes/Actions
1Materiality assessment conducted✔️/❌/➖
2ESG KPIs defined and tracked✔️/❌/➖
3ESG responsibilities assigned internally✔️/❌/➖
4Stakeholder engagement on ESG topics✔️/❌/➖
5ESG policies reviewed annually✔️/❌/➖