Towards a Global ESG Standard

Introduction: Many proposed ESG standard works are overlapping and have led to duplicative efforts by reporters and a lack of consistent and comparable data. We all need a clearer picture of how companies are managing sustainability today and planning for the future. This should be resolved by aligning and converging to establish a globally recognised sustainability reporting framework and set of standards.

AFIEA's Choice: The Best ESG Standard Guideline

• SASB has developed a complete set of 77 industry ESG standards. It helps businesses identify, manage, and report on the sustainability topics that matter most to their investors.
• In 2021, SASB merged into the Value Reporting Foundation in the name of simplifying the corporate sustainability disclosure landscape.
  
• Although there is much environmental, social, governance (ESG) and sustainability information disclosed publicly, often it is not easy to identify and assess which information is most useful for making financially-related decisions.
• SASB identifies financially material issues, which are the issues that are reasonably likely to impact the financial condition or operating performance of a company and therefore are most important to investors.
• Please note that the SASB standards depend on the companies to decide what is financially material and what information should be disclosed, taking legal requirements into account.

The SASB Materiality Map® is a useful interactive tool that identifies and compares disclosure topics across different industries and sectors.

Other ESG Standard Frameworks

UN SSE Standard

The SSE initiative is a UN Partnership Program to provide a global platform for exploring how stock exchanges can enhance performance on ESG issues and encourage sustainable investment. It maintains a ESG Disclosure Guidance Database.

IFC ESG Standard

IFC's Environmental and Social Performance Standards define IFC clients' responsibilities for managing their environmental and social risks. This helps emerging markets raise their ESG standards.

CFA Institute Standard

CFA Institute is developing a global industry standard to provide greater product transparency and comparability for investors by enabling asset managers to clearly communicate the ESG-related features of their investment products.

NASDAQ ESG Standard

Nasdaq OneReport simplifies the process of ESG data capture, engagement, oversight, and disclosures. It has also implemented an ESG Data Portal for listing companies and investors to access ESG and performance metrics.

GHG Protocal Standard

GHG Protocol supplies the world's most widely used greenhouse gas accounting standards. The tools enable companies to develop comprehensive and reliable inventories of their GHG emissions. Its standard development is facilitated by WRI and WBCSD.

GRI ESG Standard

GRI (Global Reporting Initiative) helps businesses take responsibility for their impacts, by providing them with the global common language to communicate those impacts. It defines the GRI Standards for sustainability reporting.

BlackRock ESG Standard

ESG data captures components important for valuations that are not traditionally reported. BlackRock is pushing for the industry to standardize a globally recognized ESG framework to establish criteria for sustainable investing.

Moody's ESG Standard

Sustainability and climate change are fundamental considerations to seize opportunities and manage risk in today’s global capital markets. Moody's offers data and insights across ESG and climate risks, as well as sustainable finance.

FSB TCFD Standard

Financial Stability Board's TCFD develops recommendations on the types of information that companies should disclose to support investors, lenders, and insurance underwriters in assessing risks related to climate change.