ESG is no longer a niche topic. Companies are under increasing pressure to act sustainably, responsibly and transparently. Investors, customers, employees and legislators are demanding clear information on ESG performance.
However, the growing relevance also increases complexity: numerous ESG standards and frameworks overlap, contain gaps or contradictory requirements.
The best-known ESG standards & frameworks at a glance
To maintain an overview, it is worth taking a look at the central ESG frameworks:
1. GRI (Global Reporting Initiative)
The Global Reporting Initiative is the world’s most widely used standard for sustainability reporting. GRI pursues a comprehensive stakeholder approach and focuses on a company’s impact on the environment, society and the economy.
Focus: Holistic disclosure of environmental, social and economic impacts – ideal for companies that want to address a broad target group (e.g. the public, NGOs, employees)
2. SASB (Sustainability Accounting Standards Board)
SASB develops industry-specific standards that focus in particular on financially relevant ESG issues. The approach is strongly investor-oriented and is intended to create transparency about how sustainability aspects can influence economic performance.
Focus: ESG data relevant to the capital market – particularly useful for companies with strong investor communications or stock market listings.
3. TCFD (Task Force on Climate-related Financial Disclosures)
The TCFD was launched by the Financial Stability Board of the G20. Its aim is to make climate-related risks and opportunities more transparent – especially for investors and financial market participants. Companies should disclose how they identify, assess and manage climate risks.
Focus: Strategic transparency on climate-related opportunities, risks and impacts – with a particular focus on financial reporting.
4. CSRD & ESRS (EU requirements)
The Corporate Sustainability Reporting Directive (CSRD) is the new legal basis for ESG reporting in the EU. From 2024, it will oblige numerous companies to produce standardized sustainability reports – based on the European Sustainability Reporting Standards (ESRS). These standards create clarity, uniformity and comparability within the European single market.
Focus: Legally binding ESG reporting – central for companies based or operating in the EU.
What is the difference between standards & frameworks?
In short:
- Frameworks (such as GRI or TCFD) provide a structural framework. They define which topics are relevant, how a report should be structured and which principles should be observed in reporting – for example, transparency, comparability or completeness. Frameworks therefore serve as guidelines that provide orientation, but are often deliberately formulated openly in order to be usable across all sectors.
- Standards (such as SASB or ESRS) go one step further: they define specific, verifiable requirements. This means that they define exactly what must be reported, with which key figures, to what level of detail and often in what form. This creates comparability and legal certainty – especially where ESG reports are required by law.
ESG & data strategy: a question of business intelligence
Compliance with ESG standards is not just a question of good will – it is a data-driven challenge. Companies must be able to identify, consolidate, analyse and visualize relevant data sources.
And this is where business intelligence comes into play:
A well thought-out BI concept makes it possible to automatically record ESG key figures, prepare them in a structured way and make them available in real time – more transparently, more securely and more scalably.
Conclusion: Clear standards, strong data – sustainable success
If you take ESG seriously, you need to understand standards – and master data. For companies, this means that selecting suitable frameworks and standards is only the first step. The real challenge lies in implementation.
Contact us now – with a strong partner in the field of business intelligence, companies can not only fulfill ESG, but actively use it as a competitive advantage.
