What is

ESG reporting

ESG reporting includes a framework for organizations to display their environmental, social, and governance practices along with their impacts and influence. The reporting aims to levy transparency on how an organization manages various ESG risks as well as opportunities, to allow stakeholders like employees, customers, and investors to understand the company's commitment to ethical and sustainable practices.

ESG frameworks thus give a structured blueprint ensuring consistency and coherence in the sustainability landscape. ESG reporting functions as a conduit for companies to communicate their progress to potential investors and ensure that their initiatives can yield credible and actionable results.

Why is ESG reporting important for organizations?

Enhanced Transparency and Trust:

ESG reporting provides detailed insights into a company's sustainability initiatives and operational impacts. Transparency builds trust with stakeholders and demonstrates accountability.

Attracting Investors:

Investors now prioritize ESG factors in their investment decisions. Comprehensive ESG reports increase the likelihood of attracting and retaining investors.

Consumer Loyalty:

Consumers prefer brands committed to sustainability and ethical practices. ESG reporting highlights an organization's dedication to positive social and environmental impact, strengthening brand loyalty.

Regulatory Compliance:

With increasing regulatory requirements, ESG reporting is becoming mandatory in various jurisdictions. Compliance helps companies avoid legal penalties and maintain their operational license.

Types of ESG Reporting Frameworks

TCFD- Task Force on Climate-Related Financial Disclosures

Following the establishment in 2015 by the Financial Stability Board, TCFD forms recommendations for disclosing financial risks related to the climate. It is integrated with the IFRS Sustainability Reporting Standards as per ISSB or International Sustainability Standards Board.

SASB- Sustainability Accounting Standards Board

SASB gives ESG reporting standards that are industry-specific through 77 metrics. It also offers a web tool called the Materiality Finder Tool for the identification of relevant issues based on ESG.

CDP- Carbon Disclosure Project

CDP is a not-for-profit organization studying the relationship between climate and environmental impacts, and the fiduciary responsibility for publicly-traded, large companies. Founded in 2000, CDP assists companies in disclosing carbon emissions data using questionnaires on water security, forests, and climate change.

UNGC- United Nations Global Compact

The UNGC is a voluntary initiative that promotes ten principles concerning labor, human rights, anti-corruption, and the environment, which supports different sustainable practices and developmental objectives in business.

IIRC- International Integrated Reporting Council

Founded in 2010, IIRC advocates integrated reporting and links ESG factors with financial performance. This helps in the provision of a holistic understanding and comprehensive outlook for value creation.

SBTi- Science-Based Targets Initiative

SBTi operating in the private sector motivates organizations to utilize science-based targets setting a 5-stage process. The targets need to be appropriate scientifically as per certain criteria for meeting the objectives of the Paris Agreement. Organizations of all industries and sizes can join as pathways specific to sectors remain developed.

PRI- UN Principles for Responsible Investment

This is supported by the UN to consider a network of investors worldwide, to whom they can provide support through consideration of investment implications related to ESG factors. The body operates independently in the interest of its investors, their financial markets and economies, as well as the environment and society as a whole.

5- ESG reporting

standards

These standards remain characterized by particular directives guiding companies in articulating their ESG initiatives. It sets them apart from the broad principles that are offered by frameworks.

EFRAG-European

Financial Reporting Advisory Group

EFRAG significantly contributes to the reporting standards of ESG within Europe. It essentially evaluates the addition of environmental, governance, and social aspects into the norms of financial reporting. These assessments are imperative to ensure the dimensions remain effectively added, bolstering the relevance of financial reporting and transparency.

SECR- Streamlined Energy and

Carbon Reporting

SECR enforces lucidity in carbon-based or energy-based information in large UK companies. It mandates the disclosure of GHG emissions, energy consumption as well as measures of energy efficiency in annual reports.

GRESB- Global Real Estate

Industry Benchmark

GRESB gives engagement tools and business insights to the members who are mainly asset managers or investors. Their specialization lies in validation, collection, benchmarking, and scoring ESG data based on self-reports from individual portfolios and assets. GRESB induces annual analyses of industry-based ESG to publish outcomes as a global benchmark.

DJSI-Dow Jones

Sustainability Index

DJSI benchmarks are recognized internationally as they evaluate organizations per their ESG performances. The indices assess different facets such as stakeholder engagement, ethical governance, and resource management. Companies earning a place in the DJSI exemplify committing to sustainable accountability.

WDI- Workforce

Disclosure Initiative

WDI puts forth demands for companies to disclose their workforce data comprehensively. It can include details regarding workforce composition, employment practices, diversity, and wages. Embracing the WDI makes organizations highlight their dedication to fostering fairness and promoting equitable labor practices.

EFRAG-European

Financial Reporting Advisory Group

DJSI-Dow Jones

Sustainability Index

SECR- Streamlined Energy and

Carbon Reporting

WDI- Workforce

Disclosure Initiative

GRESB- Global Real Estate

Industry Benchmark

Is ESG Reporting

Mandatory?

Asia

While ESG reporting is not found to be uniformly mandatory across Asia, nations like China and Japan increasingly encourage or require companies to disclose ESG-based information.

Europe

ESG reporting is deemed mandatory for large organizations under the CSRD, requiring extensive disclosures on sustainability performance.

United States

In the USA, the SEC works on rules and regulations requiring public companies to disclose climate-based risks and opportunities, signaling a move for mandatory reporting of ESG.

Which global companies has

the best ESG report?

Unilever

Known for its transparent reporting and comprehensive, outlined sustainability ventures and programs.

Nestle

Praised for its detailed disclosures on social and environmental responsibility.

Microsoft

Recognized for its commitment to extensive ESG initiatives and carbon neutrality.

Patagonia

Commended for its robust ESG reporting and environmental activism.

What are the ESG Reporting

Requirements?

Global Regulations and Standards

European Union (EU): The EU's Non-Financial Reporting Directive (NFRD) mandates large public-interest companies to disclose non-financial information, including ESG data. The upcoming Corporate Sustainability Reporting Directive (CSRD) will expand these requirements to more companies.

United States: While ESG reporting is largely voluntary, the Securities and Exchange Commission (SEC) has proposed enhanced disclosure requirements for climate-related risks.

United Kingdom (UK): The UK requires large companies to disclose their energy use and carbon emissions under the Streamlined Energy and Carbon Reporting (SECR) framework.

Industry-Specific Requirements

Financial Sector: Banks and financial institutions often follow the Task Force on Climate-related Financial Disclosures (TCFD) recommendations.

Energy Sector: Companies in the energy sector may adhere to the Carbon Disclosure Project (CDP) standards and industry-specific guidelines.

Key Elements of

ESG Reporting Requirements

Environmental: Data on greenhouse gas emissions, energy use, waste management, water consumption, and biodiversity impact.

Social: Information on labor practices, human rights, community engagement, diversity and inclusion, and health and safety.

Governance: Details on board composition, executive compensation, anti-corruption measures, and shareholder rights

Here is How You Can Initiate

Your ESG Reporting Today

Evaluation of Existing Sustainability Practices:
Review current sustainability initiatives to identify strengths and areas needing improvement, ensuring a comprehensive understanding of the current state.
Selection of an Appropriate Framework:
Choose an ESG reporting framework that aligns with your company's goals and industry standards, such as GRI, SASB, or TCFD, to ensure consistency and relevance.
Defining Clear Goals:
Establish specific, measurable, achievable, relevant, and time-bound (SMART) goals for ESG reporting to guide the process and measure progress effectively.
Data Collection:
Gather accurate and relevant data across environmental, social, and governance sectors. Ensure data integrity by implementing robust data management systems.
Stakeholder Engagement:
Involve key stakeholders, including employees, investors, customers, and community members, in the ESG reporting process to ensure comprehensive and meaningful disclosures.
Regular Publication and Accessibility:
Publish ESG reports regularly and make them easily accessible to all stakeholders. This transparency builds trust and demonstrates ongoing commitment to sustainability.

Decarbonisation and

ESG Reporting

Decarbonisation refers to the process of reducing carbon dioxide emissions resulting from human activity, with the ultimate goal of achieving a low-carbon economy. It is a crucial component of global efforts to combat climate change and promote sustainable development.

The Role of ESG Reporting in Decarbonization

ESG (Environmental, Social, and Governance) reporting plays a pivotal role in decarbonisation by:

Tracking Emissions: ESG reports provide detailed accounts of an organization's carbon footprint, enabling the measurement and tracking of greenhouse gas (GHG) emissions.

Setting Targets: Companies use ESG reporting to set and communicate their decarbonisation targets, such as achieving net-zero emissions by a specific year.

Transparency: ESG reporting ensures transparency, allowing stakeholders to understand the company's impact on the environment and its commitment to reducing carbon emissions.

Accountability: Through regular ESG reports, companies can be held accountable for their decarbonisation efforts and progress.

Decarbonization Strategies Highlighted in ESG Reports

Energy Efficiency: Implementing energy-efficient technologies and practices to reduce energy consumption and emissions.

Renewable Energy: Transitioning to renewable energy sources such as solar, wind, and hydro power.

Sustainable Supply Chains: Engaging suppliers committed to reducing their carbon footprint and adopting sustainable practices.

Innovation: Investing in innovative solutions and technologies that promote decarbonisation and sustainability.

Why Choose Us for

ESG Reporting

Choose Earthood for expert, reliable, and tailored ESG reporting solutions. Contact us today to start your journey towards sustainability.

Expertise and Experience

Earthood is a trusted leader in carbon offset audits and ESG reporting.

Comprehensive Services

WE OFFER:

Carbon Footprint Analysis
Sustainability Strategy Development
Compliance and Standards
Stakeholder Engagement

Customized Solutions
Tailored ESG reporting services to meet your specific needs and goals.
Proven Track Record
Successful ESG enhancement and compliance for numerous organizations.
Client-Centric Approach
Prioritizing clear communication, timely delivery, and continuous support.
Cutting-Edge Tools and Methodologies
Using the latest tools for accurate and reliable ESG reports.
Trusted by Leading Companies
Partnered with top companies to drive sustainability and excellence.

Our Seal of Excellence

Accreditations

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