How to approach ESG Reporting

Written by Robin Boustead, ESG & Carbon Management Strategist

The European Union (EU) and world financial markets are currently experiencing an explosion of sustainability reporting standards, most notably the International Sustainability Standards Board (ISSB, established by the global accounting standard-setter International Financial Reporting Standards, IFRS) and the European Sustainability Reporting Standards (ESRS, an outcome of the Corporate Sustainability Reporting Directive, CSRD). Both link financial reporting statements with sustainability disclosures to strengthen investor protection, reduce greenwashing and ensure reliable and comparable disclosures that meet the information needs of investors and other stakeholders.

Following is a summary of how to approach and implement reporting systems to meet your obligations under these new standards.

1. OUTLINE YOUR ESG PROCESS

Implementing ESG requires strategic alignment at the highest levels of the organisation. This first step outlines how to integrate ESG into your corporate strategy and operating procedures and ensure that sustainability goals are seamlessly integrated into the structure of your business activities and decision-making processes.

Responsibility: BOARD and senior management level

→ review business strategy

→ review brand positioning

→ broadly define company targets

ESG compliance with corporate strategy and business practices requires the following considerations:

What are the organisation’s goals for the next 5-10 years and is it possible to establish very long-term goals for 2050?
Which standards apply and which overlaps
Implications for brand equity, competitive advantage, investor management and risk exposure:
- for example: financial implications of climate change or regulatory changes
Extent of influence over your value chain and internal capacities