New publication: Comparing international sustainability reporting frameworks13 July 2020
The landscape for environmental, social and governance (ESG) reporting, also referred to as “sustainability reporting” or “non-financial reporting”, has rapidly evolved in recent years. This evolution is occurring in response to demands from a wide range of stakeholders. The rapid development of an EU regulatory framework for sustainable finance is further driving the need for evolution in sustainability reporting in order to be able to comply with the various requirements and disclosure obligations.
Consequently, the European Commission is currently reviewing the Non-Financial Reporting Directive (NFRD) in order to address data issues and meet evolving needs for sustainability reporting.
In anticipation of the NFRD review and the further evolution of sustainability reporting, Irish Funds has published a comment paper entitled “Comparing international sustainability reporting frameworks”.
This paper provides an overview and comparative analysis of some of the existing international reporting frameworks, including the Sustainability Accounting Standards Board (SASB), the Task Force on Climate-related Financial Disclosures (TCFD), the International Integrated Reporting (IR) Framework, Climate Disclosure Sustainability Board (CDSB) and Global Reporting Initiative (GRI).
The paper compares the standards in relation to:
- Alignment with the TCFD recommendations
- Pros and cons of each standard
Given the global nature of business and finance and as sustainability is a global challenge, the development of an EU based sustainability reporting framework will have limitations without greater international convergence. An updated NFRD framework in the EU should not operate in isolation of other international disclosure frameworks that are already in place and that have pioneered best practice in this area.
Irish Funds recently responded to the European Commission’s consultation on the review of the NFRD and published a comment paper entitled “Building a common EU framework for corporate non-financial reporting disclosures”.
A webinar entitled “Sustainability Reporting in Focus” was held on 9 July 2020.