“Navigating Sustainability Reporting Frameworks - A Practical Guide” from The Conference Board provides a foundation for sound decision-making in the selection of one or more sustainability reporting frameworks. Importantly, the resource doesn’t aim to promote any particular framework; rather, it recognizes that company-specific differences should influence that decision.
Companies are advised to consider five key questions to facilitate their assessment, including mandatory reporting requirements, the company’s overall objectives, industry-specific factors, alignment with the company’s most material issues, and the intended audience. The questions are supported by relevant benchmarking data that illustrates how certain reporting frameworks may fulfill different perspectives and objectives. For example, a March 2021 survey of large company sustainability executives revealed the CDP as the most beneficial of four select frameworks for peer benchmarking by a large margin, whereas SASB was deemed the most beneficial for investor attention, as shown here:
The guide also emphasizes the importance of establishing good governance in relation to the framework decision-making process that includes a decision-maker at the C-suite level, sound decision-making criteria, and identifying in advance those best positioned to lead and to be involved in the process.
See also “How To Compare ESG and Sustainability Reporting Standards” (Inogen) and additional resources on our Sustainability page.
This post first appeared in the weekly Society Alert!