There are many different sustainability reporting standards in the world today and business leaders and companies need to understand which ones are relevant or even mandatory for them.
Adopting the right sustainability reporting standards is a crucial step to ensure transparency, meet regulatory requirements, and showcase your commitment to environmental, social, and governance (ESG) factors.
In this guide, we’ll walk you through the most common sustainability reporting standards and frameworks, compare their features, and help you identify the one that best suit or apply to your business.
Common Sustainability Reporting Standards and Frameworks in 2024
Here’s a breakdown of the most widely recognized standards and frameworks in sustainability reporting in 2024:
Greenhouse Gas (GHG) Protocol
The GHG Protocol is the most widely used framework in 2024 for measuring and managing greenhouse gas emissions. It categorizes emissions into 3 scopes: direct emissions, indirect emissions from purchased energy, and all other indirect emissions across the value chain. Nearly all other frameworks and standards base their environmental requirements on the GHG Protocol.
- Best For: Companies of all sizes measuring their carbon footprint.
- Why Choose GHG Protocol?: A universally recognized framework for quantifying and managing carbon emissions across all sectors.
Read our Guide to the GHG Protocol to learn more about emission disclosures!
Global Reporting Initiative (GRI)
The GRI Standards are among the most widely adopted and recognized globally. They are designed for organizations of all sizes to disclose their impacts on the economy, environment, and society. They offer a modular structure, including universal, sector-specific, and topic-specific standards and put special emphasis on stakeholder inclusivity. Over 13,000 organizations in 90 countries use GRI for their sustainability reporting.
- Best For: Companies of all sizes and industries looking for a flexible yet thorough framework.
- Why Choose GRI?: If you’re new to reporting or need a versatile framework, GRI’s wide adoption and detailed guidance make it an excellent starting point.
Corporate Sustainability Reporting Directive (CSRD)
The CSRD is a mandatory framework under the European Union, requiring detailed ESG disclosures from qualifying companies. It emphasizes double materiality, covering the impacts of corporate activities on the environment and society, as well as the financial implications of sustainability risks. CSRD is enforced through the European Sustainability Reporting Standards (ESRS).
- Best For: Companies in the EU falling under the reporting obligations
- Why Choose CSRD?: If you operate in Europe, CSRD & ESRS compliance is non-negotiable for regulatory alignment.
Read our Guide to CSRD to learn more about this EU standard!
Sustainability Accounting Standards Board (SASB)
SASB provides industry-specific standards that focus on financially material ESG factors. With guidance for 77 industries, it helps companies identify and report sustainability issues most relevant to their financial performance and investor expectations.
- Best For: Companies in the United States or publicly traded firms looking to align with investor expectations.
- Why Choose SASB?: Ideal for businesses aiming to integrate sustainability into core financial reporting.
Task Force on Climate-Related Financial Disclosures (TCFD)
TCFD emphasizes the disclosure of climate-related risks and opportunities in financial reporting. Its framework focuses on four thematic areas: Governance, Strategy, Risk Management, and Metrics. TCFD puts a strong focus on climate resilience and scenario analysis, enabling organizations to align climate resilience with long-term business strategies.
- Best For: Companies wanting to address climate change in financial terms and align with investor needs.
- Why Choose TCFD?: As climate risks dominate ESG discussions, TCFD aligns with global trends in climate-related financial disclosures.
Carbon Disclosure Project (CDP)
CDP (formerly Carbon Disclosure Project) specializes in environmental impact disclosures, covering climate change, water security, and deforestation. Through detailed questionnaires and benchmarking, it allows companies to measure, showcase, and compare their environmental leadership.
- Best For: Companies with a strong focus on environmental accountability.
- Why Choose CDP?: If your company wants to showcase leadership in environmental transparency, CDP is the go-to choice.
Deutscher Nachhaltigkeitskodex (DNK)
The German Sustainability Code (DNK) is a cross-industry transparency standard aimed at helping companies of any size report on their sustainability performance. It offers a structured approach to ESG reporting – integrating the NFRD standards – tailored to meet German market and stakeholder expectations, making it an ideal choice for businesses operating within Germany.
- Best For: Companies – especially smaller ones – operating within Germany or seeking to comply with local reporting standards.
- Why Choose DNK?: DNK provides an easy-to-follow framework and supports companies in aligning with the EU’s evolving sustainability regulations.
International Sustainability Standards Board (ISSB)
The ISSB develops global sustainability reporting standards (currently IFRS S1 & S2) aligned with International Financial Reporting Standards (IFRS). It focuses on creating consistent, comparable, and reliable ESG disclosures for investors and other financial stakeholders, particularly emphasizing climate-related and material sustainability issues.
- Best For: Global businesses and publicly traded companies seeking alignment with IFRS standards.
- Why Choose ISSB?: Provides globally consistent standards for sustainability reporting, especially for companies operating in multiple jurisdictions.
Non-Financial Reporting Directive (NFRD)
The NFRD is the precursor to the CSRD and mandates sustainability disclosures for large public-interest entities in the European Union. It requires reporting on environmental, social, and governance issues and is gradually being replaced by the CSRD.
- Best For: Large public-interest entities in the EU.
- Why Choose NFRD?: If your organization operates in the EU and is subject to non-financial reporting requirements, compliance with NFRD is essential.
US SEC Climate Disclosure Rules
The U.S. Securities and Exchange Commission (SEC) has introduced rules requiring companies to disclose climate-related risks, financial impacts, and greenhouse gas emissions in their filings. This regulation targets publicly traded companies and aligns with global trends.
- Best For: Publicly traded companies in the U.S.
- Why Choose SEC Rules?: Compliance ensures alignment with emerging U.S. regulatory standards and increases investor confidence.
Why Are Sustainability Reporting Standards Important?
Sustainability reporting standards help businesses structure and disclose their ESG performance clearly and reliably. They build trust through transparency, prevent greenwashing, ensure compliance with growing regulations like the EU’s CSRD, and give companies a competitive edge by attracting investors and customers who value sustainability.
Plus, they’re a vital tool for identifying and managing risks tied to climate, governance, and societal challenges.
5-Steps Guide to Choose the Right Sustainability Standard and Framework for Your Business
Choosing the best sustainability reporting standard for your business can feel overwhelming, but here are 5 steps to make this simpler:
- GHG Protocol: Start here to quantify emissions and get started with climate disclosure
- Regulatory Requirements: Are you subject to mandatory reporting laws (CSRD, SEC, etc.)?
- Industry Focus: SASB and TCFD are excellent for sector-specific or climate-focused reporting.
- Stakeholder Expectations: Consider the needs of your investors, customers, and employees.
- Company Maturity: GRI works well for beginners, while advanced reporters may benefit from combining frameworks.
1. Start with the GHG Protocol
In our experience, it’s best to start with the GHG Protocol and work your way up from there. This involves calculating emissions across Scope 1, 2, and 3 and establishing a baseline. With this data in hand, you’ll have a solid foundation to meet the requirements of frameworks like GRI, CDP, TCFD, and SASB.
2. Understand Your Regulatory Requirements
The next step is to determine whether you’re subject to mandatory reporting laws. For example, companies operating in the European Union may need to comply with the Corporate Sustainability Reporting Directive (CSRD) and its European Sustainability Reporting Standards (ESRS). Similarly, U.S.-based publicly traded companies must follow the SEC’s climate disclosure rules.
3. Align with Your Industry Focus
Some frameworks are tailored to specific industries or sectors. The Sustainability Accounting Standards Board (SASB) provides detailed guidance for 77 industries, while the Task Force on Climate-Related Financial Disclosures (TCFD) focuses on climate risks and opportunities. If your industry has unique sustainability challenges or opportunities, choose a framework that highlights these.
4. Address Stakeholder Expectations
Think about what your stakeholders—investors, customers, and employees—care about most. If investors demand transparency on financial risks associated with climate change, consider TCFD. If customers want proof of environmental accountability, CDP may be the right choice. Tailoring your reporting to stakeholder priorities enhances trust and engagement.
5. Assess Your Company’s Maturity in Sustainability Reporting
If you’re just starting, the Global Reporting Initiative (GRI) provides a broad and flexible framework that’s easy to implement. Advanced reporters, however, might benefit from combining multiple frameworks to meet diverse needs. For instance, pairing GRI for general disclosures with TCFD for climate-specific reporting ensures comprehensive coverage.
Combining Standards for Maximum Impact
No single framework fits every need, and businesses often combine standards to create a comprehensive sustainability report. For instance, the GHG Protocol serves as a foundational tool for measuring emissions. You can layer this with CSRD to comply with EU regulations, TCFD for climate-specific risks, and SASB to highlight financial materiality in your industry.
By combining frameworks, you address diverse stakeholder expectations while meeting regulatory requirements.
How Reegy can Simplify Your Sustainability Reporting
Manually navigating reporting standards can be overwhelming. That’s why our Reegy platform software aims to simplify the process by:
- Automating data collection and analysis.
- Offering templates aligned with the GHG Protocol, CSRD, TCFD, and more.
- Generating reports that meet regulatory and stakeholder expectations.
Conclusion
Sustainability reporting goes beyond compliance—it’s about building trust, demonstrating leadership, and making meaningful progress toward a sustainable future. By starting with the GHG Protocol and integrating other frameworks tailored to your needs, you can effectively showcase your ESG impact.
Ready to simplify your sustainability journey? Contact us today to learn how Reegy can streamline your sustainability reporting!
Reegy is a complete software solution for ESG & Carbon Footprint Management. Our Reegy Eco Hub enables enterprises, financial institutions and governmental organizations to manage their climate action in one central location along the entire value chain. Track, measure, reduce, and offset your carbon emissions, disclose them to regulators, stakeholders, and customers and lead your company to Net Zero on autopilot!