Definitions Sustainability Explained
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Definitions Sustainability Explained

Sustainability standards

Sustainability standards such as GRI, WEF, TCFD, CSRD, and the EU Taxonomy are frameworks and guidelines that help organizations measure, understand, and communicate their environmental, social, and governance (ESG) performance. Here's a brief overview of each:

Global Reporting Initiative (GRI):

  • The GRI is a leading organization in the sustainability field that provides a comprehensive set of standards for sustainability reporting.
  • These standards are designed to help organizations report on their impact on the economy, the environment, and society.
  • The GRI standards are widely used globally and are considered the benchmark for sustainability reporting.

World Economic Forum (WEF):

  • The WEF is an international organization for public-private cooperation.
  • While not a standard-setter in sustainability reporting, the WEF often works on initiatives contributing to global discussions on ESG issues.
  • The WEF's annual meeting in Davos is a platform where sustainability and climate change are frequently discussed and where new frameworks and initiatives can be launched.
  • The TCFD provides recommendations for climate-related financial risk disclosures in public financial filings.
  •  Its framework helps companies inform investors, lenders, insurers, and other stakeholders about climate-related risks and opportunities.
  •  The TCFD focuses on governance, strategy, risk management, metrics, and targets for understanding and disclosing climate-related financial impacts.

Corporate Sustainability Reporting Directive (CSRD):

  • The CSRD is an initiative by the European Union to improve the flow of sustainability information in the corporate world.
  • It seeks to bring sustainability reporting on par with financial reporting, thus making sustainability reports more consistent and comparable.
  • The CSRD will require companies to report on their sustainability measures and the impacts of their activities on people and the environment, using standards currently being developed.

The EU Taxonomy:

  • The EU Taxonomy is a classification system established by the European Union, designed to clarify which investments are environmentally sustainable.
  • It's part of the EU's action plan on financing sustainable growth and aims to prevent greenwashing by providing a clear set of criteria for what can be considered "sustainable."
  • This helps investors, companies, issuers, and project promoters navigate the transition to a low-carbon, resilient, and resource-efficient economy.
  • These frameworks and directives uniquely shape how organizations approach sustainability, providing different tools and metrics for evaluating and reporting on their ESG performance. These standards are increasingly integrated into regulatory requirements, influencing investor and consumer expectations worldwide.