ESG Standards and Frameworks: An Overview

ESRS

About:

The European reporting standard ESRS was introduced as part of the EU CSRD Directive. Its aim is to improve the quality and comparability of sustainability reports.

Focus areas:

• Environment
• Social
• Governance

Relevant for:

Companies required to prepare a CSRD report.

Advantages:

• EU-wide comparability
• Simplified versions for SMEs

Disadvantages:

• High complexity
• Very extensive

Other:

Phased implementation depending on company size

VSME

About:

The Voluntary Standard for Small and Midsized Enterprises (VSME) enables meaningful sustainability reporting without the effort required for the “full” ESRS.

Focus areas:

• Environment
• Social
• Governance

Relevant for:

Midsized companies that want to showcase their sustainability performance without being subject to CSRD requirements – officially recommended by the EU Commission in July 2025.

Advantages:

• Clear framework for reporting and communication
• Modular structure with flexible effort levels

Disadvantages:

• No mandatory assurance

Other:

Voluntary standard.

GRI

About:

The GRI Standard has existed since 1999 and has been continuously developed since then. It provides companies with a framework to measure and disclose their progress in the ESG areas.

Focus areas:

• Environment
• Social
• Governance

Relevant for:

Primarily large international companies.

Advantages:

• Strong international recognition
• Developed in dialogue with stakeholders
• Serves as a foundation for management systems

Disadvantages:

• Very extensive
• High effort required
• Losing relevance in the EU due to ESRS

Other:

Voluntary reporting standard, but its content is reflected in the ESRS.

DNK

About:

The German Sustainability Code (DNK) is a national reporting standard. With the CSRD, it is being restructured into a support tool for companies to facilitate CSRD implementation.

Focus areas:

• Environment
• Social
• Governance

Relevant for:

According to the DNK, all companies required – or willing – to report under CSRD.

Advantages:

• Aims to simplify CSRD reporting

Disadvantages:

• No materiality assessment included

SDG

About:

The Sustainable Development Goals (SDGs) are the UN’s 17 sustainability goals. They serve as a global framework that companies can use to report on their contribution to these objectives.

Focus areas:

• Environment
• Social
• Governance

Relevant for:

Any company.

Advantages:

• Good for getting started
• Globally recognized
• Complementary framework
• Helpful for communication

Disadvantages:

• Requirements must be translated individually
• No specific corporate guidelines

Other:

Voluntary framework – SDG logos may be used for non-commercial purposes.

UNGC

About:

The UN Global Compact (UNGC) is an international network promoting 10 principles in the areas of human rights, labor standards, environment, and anti-corruption. It also offers a reporting framework.

Focus areas:

• Environment
• Social
• Governance

Relevant for:

Any company.

Advantages:

• Good for getting started
• Large network and database
• Strong support from the UN and partner organizations

Disadvantages:

• Less structured and specific
• No binding control

Other:

Voluntary framework – members may use UNGC logos for non-commercial purposes.

ISO 14001

About:

ISO 14001 is an international standard for environmental management systems. It helps companies systematically identify and continuously improve their environmental impacts.

Focus areas:

• Environment

Relevant for:

Any company.

Advantages:

• Certification available
• Internationally recognized
• Enables systematic improvement of environmental performance

Disadvantages:

• Environmental audit only recommended
• Environmental statement not required to be published

Other:

Often required in tenders.

ISO 26000

About:

ISO 26000 is an international guideline on social responsibility. It provides recommendations for integrating sustainable and responsible practices into strategies and processes.

Focus areas:

• Environment
• Social
• Governance

Relevant for:

Any company.

Advantages:

• Well suited for the development of sustainability processes
• Comprehensive approach
• Flexible application

Disadvantages:

• No certification, therefore less recognized

Other:

ISO 26000 serves as a practical guideline and can be useful in tenders.

EMAS

About:

The Eco-Management and Audit Scheme (EMAS) is a standard for environmental management systems. It goes beyond ISO 14001 by requiring, among other things, a public and detailed environmental statement.

Focus areas:

• Environment

Relevant for:

Any company – especially large enterprises and corporations.

Advantages:

• Certification available
• Public register promotes transparency
• Strengthens the environmental image
• Simplified variant for SMEs

Disadvantages:

• More demanding than ISO 14001

Other:

EMAS certification includes regular external environmental audits.

ISSB

About:

The International Sustainability Standards Board (ISSB) develops a global standard for capital market-oriented companies to ensure consistent and comparable sustainability disclosures.

Focus areas:

• Environment
• Social
• Governance

Relevant for:

Primarily capital market-oriented and international companies.

Advantages:

• Integrates and harmonizes central elements of existing frameworks
• Aims to become the leading global standard

Disadvantages:

• High implementation effort

Other:

Voluntary reporting standard, but content is reflected in ESRS.

TCFD

About:

The Task Force on Climate-related Financial Disclosures (TCFD) provides recommendations for companies on how to report the financial impacts of climate change on their business.

Focus areas:

• Climate

Relevant for:

Primarily the financial sector and capital market-oriented companies.

Advantages:

• Provides insights into climate-related risks and opportunities
• Consistent and standardized reporting

Disadvantages:

• Limited to climate-related impacts
• Implementation can be challenging

Other:

Voluntary reporting standard, but content is reflected in ESRS.