Sustainability Reporting Frameworks, Standards, Instruments, and Regulations

Abstract

In order to assure the quality of sustainability reporting and facilitate the efficient creation of comparable reports, it is necessary to have robust reporting standards that can be applied in a global economy in which the operational activities and reporting responsibilities of companies transcend national borders. International organizations, such as the United Nations; regional organizations, such as the European Union; and stock exchanges and independent organizations, such as the Global Reporting Initiative (“GRI”), have all been involved in the development and implementation of key international initiatives on sustainability reporting. Many of these initiatives take the form of national policies and instruments that incorporate elements of international or corporate social responsibility reporting frameworks. There are a variety of frameworks and tools that organizations can leverage in order to develop their sustainability strategies and reporting processes. Many of these take a comprehensive approach and have achieved international recognition including the GRI Standards, which are referenced in government or market instruments in dozens of countries around the world, the UN Global Compact, OECD Guidelines for Multinational Enterprises and the ISO 26000 Guidance Standard on Social Responsibility. Adding to the complexity is the emergence of sector-specific performance measurement and reporting frameworks, such as the GRESB for assessing ESG performance in the global commercial real estate sector. Several of the more recognized sustainability reporting frameworks and instruments are briefly introduced in this chapter.

Keywords: sustainability, reporting, ESG, Global Reporting Initiative