ESG standards and frameworks at a glance

ESRS

Brief description:

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

Subject areas:

• Environment
• Social affairs
• Governance

Relevant for:

Companies that have to write a CSRD report.

Advantages:

• Europe-wide comparability
• Slimmed-down versions for SMEs

Disadvantages:

• High complexity
• Very extensive

Other:

Staggered introduction according to company size.

VSME

Brief description:

The Voluntary Standard for Small and Midsized Enterprises enables meaningful sustainability reporting without the expense of the “big” ESRS.

Subject areas:

• Environment
• Social affairs
• Governance

Relevant for:

Medium-sized companies that want to make their sustainability performance visible even without the CSRD obligation – since July also officially recommended by the EU Commission.

Advantages:

• Clear framework for reporting and communication
• Modular structure for individually selectable effort

Disadvantages:

• No mandatory audit

Other:

Voluntary standard.

GRI

Brief description:

The GRI standard has been in existence since 1999 and has been continuously developed since then. It provides companies with a framework for measuring and disclosing their development in the ESG fields.

Subject areas:

• Environment
• Social affairs
• Governance

Relevant for:

Especially large international companies.

Advantages:

• Strongly established internationally
• Developed in dialog with stakeholder groups
• Basis for management system

Disadvantages:

• Very extensive
• High expenditure
• Losing importance in the EU due to ESRS

Other:

Voluntary reporting standard, but the contents are taken into account by the ESRS.

DNK

Brief description:

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

Subject areas:

• Environment
• Social affairs
• Governance

Relevant for:

Support according to the DNK for all companies that have to or want to do CSRD.

Advantages:

• The aim is to facilitate CSRD reporting

Disadvantages:

• No materiality analysis

SDG

Brief description:

The Sustainable Development Goals (SDGs) are the UN’s 17 sustainability goals. They form an international framework on the basis of which companies can report on their contribution to the goals.

Subject areas:

• Environment
• Social affairs
• Governance

Relevant for:

Every company.

Advantages:

• Good for getting started
• Global recognition
• Supplementary framework
• Helpful for communication

Disadvantages:

• Requirements must be translated individually
• No specific corporate guidelines

Other:

Voluntary framework – SDG logos may be used non-commercially.

UNGC

Brief description:

The UN Global Compact (UNGC) is an international network for the promotion of 10 principles in the areas of human rights, labor standards, the environment and corruption. It also provides a reporting standard.

Subject areas:

• Environment
• Social
• Governance

Relevant for:

Every 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 non-commercially

ISO 14001

Brief description:

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

Subject areas:

• Environment

Relevant for:

Every company.

Advantages:

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

Disadvantages:

• Environmental assessment only recommended
• Environmental statement does not have to be published

Other:

Is sometimes required for required in tenders.

ISO 26000

Brief description:

ISO 26000 is an international guideline for the social responsibility of organizations. It offers recommendations for integrating sustainable and responsible practices into strategies and processes.

Subject areas:

• Environment
• Social
• Governance

Relevant for:

Every company.

Advantages:

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

Disadvantages:

• No certification, therefore less recognized

Other:

ISO 26000 is suitable as a guideline for action and is helpful for tenders.

EMAS

Brief description:

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

Subject areas:

• Environment

Relevant for:

Every company – but especially large companies and groups.

Advantages:

• Certification possible
• Public register promotes transparency
• Strengthens the environmental image
• Facilitation for SMEs

Disadvantages:

• More complex than ISO 14001

Other:

EMAS certifications are accompanied by regular external environmental audits.

ISSB

Brief description:

The International Sustainability Standards Board (ISSB) is developing a global standard for capital market-oriented companies to make sustainability information consistent and comparable.

Subject areas:

• Environment
• Social affairs
• Governance

Relevant for:

Especially for capital market-oriented and international companies.

Advantages:

• Integrates and harmonizes central elements of existing frameworks
• To become the leading standard

Disadvantages:

• High implementation costs

Other:

Voluntary reporting standard, but the contents are taken into account by ESRS.

TCFD

Brief description:

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

Subject areas:

• Climate

Relevant for:

Especially for the financial sector and capital market-oriented companies.

Advantages:

• Provides information on climate-related risks and opportunities
• Consistent and standardized reporting

Disadvantages:

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

Other:

Voluntary reporting standard, but the contents are taken into account by ESRS.