The ESG landscape is filled with acronyms, making it difficult to navigate. To help businesses understand and comply with sustainability requirements, we’ve compiled this comprehensive guide to ESG frameworks, standards, regulatory bodies, and key initiatives.
Frameworks vs. Standards vs. Regulations
Frameworks offer broad principles for structuring ESG disclosures but do not dictate specific metrics or reporting requirements. These provide a foundation for sustainability reporting, offering flexibility and broad guidance on reporting practices.
Standards go beyond frameworks by defining measurable criteria, definition and methodologies to ensure consistent, comparable, and verifiable reporting. They are often detailed and designed to help companies achieve reliability and reproducibility in their ESG data.
Regulations are legally binding rules enforced by governments or regulatory bodies, often with penalties for non-compliance. These set mandatory disclosure requirements and ensure organizations adhere to specific ESG-related obligations.
Global ESG Frameworks and Standards
General ESG Reporting Frameworks
These frameworks provide overarching principles for sustainability reporting across industries:
- GRI – Global Reporting Initiative
The Global Reporting Initiative (GRI) is the most widely used ESG reporting framework, focusing on stakeholder-driven materiality. It includes disclosures across environmental, social, and governance topics and aims to provide transparency for stakeholders about an organization’s sustainability impact. GRI encourages businesses to disclose their sustainability performance and impact on the global community, offering standardized metrics for reporting.
- SASB – Sustainability Accounting Standards Board
The Sustainability Accounting Standards Board (SASB) developed industry-specific ESG reporting standards aim at addressing financially material issues that are important to investors. The standards help organizations communicate ESG risks and opportunities in a way that is relevant to financial performance, making them investor focused. SASB has now been integrated into the International Sustainability Standards Board (ISSB), which is working to unify global sustainability reporting standards.
- Integrated Reporting (IR) Framework
The Integrated Reporting Framework (IR) brings together financial and ESG data, creating a cohesive corporate report that promotes long-term value creation. It connects the traditional financial statements with broader sustainability and governance aspects, enabling companies to provide a comprehensive view of how they create value over time. This framework encourages organizations to consider both financial and non-financial factors in their reporting.
Climate and Environmental Disclosures
These frameworks specifically help organizations disclose climate risks and environmental impacts:
- TCFD – Task Force on Climate-related Financial Disclosures
The Task Force on Climate-related Financial Disclosures (TCFD) was created by the Financial Stability Board (FSB) to develop voluntary, consistent climate-related financial risk disclosures. This framework was widely adopted by investors and regulators globally to help businesses disclose how they are affected by climate change, as well as how they manage climate-related risks and opportunities. Following the release of the Task Force’s 2023 Status Report, upon request of the FSB, the TCFD has been disbanded. The FSB has asked the IFRS Foundation to take over the monitoring of the progress of companies’ climate-related disclosures.
- Climate Disclosure Standards Board (CDSB)
The Climate Disclosure Standards Board (CDSB) was an international consortium that developed frameworks for integrating environmental and social information into mainstream corporate financial reporting, emphasizing climate change, water, and biodiversity risks. Now part of the IFRS Foundation, CDSB’s work underpins the International Sustainability Standards Board (ISSB), which is developing global sustainability disclosure standards. CDSB’s framework informed the TCFD recommendations and provided guidelines for companies to disclose climate-related financial risks and opportunities in annual reports, ensuring alignment with financial disclosures. Its technical guidance remains relevant until ISSB standards are finalized.
- CDP
The CDP is a voluntary disclosure system that encourages companies and cities to report their environmental data, particularly focusing on climate, water, and forest-related risks. By disclosing their environmental impact, organizations provide stakeholders with data to drive better decision-making. The system is widely used by investors, corporations, and governments. As a Gold accredited CDP partner, Cority ensures top-tier CDP reporting standards. Our software includes dedicated content and modules for accurate, compliant reporting. Being one of the first to integrate with the CDP API, Cority offers seamless automated submissions and efficient data management across multiple frameworks.
- GHG Protocol
The Greenhouse Gas Protocol (GHG Protocol) is the global standard for measuring and managing greenhouse gas emissions, providing frameworks to help organizations track, report, and reduce emissions across their operations and value chains. Established by the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD), it categorizes emissions into Scope 1 (direct), Scope 2 (indirect from purchased energy), and Scope 3 (all other indirect emissions) to ensure comprehensive accounting. Widely adopted by governments, businesses, and cities, the GHG Protocol underpins global climate commitments like the Paris Agreement and is used by over 97% of S&P 500 companies disclosing emissions.
- TNFD – Task Force on Nature-related Financial Disclosures
The Task Force on Nature-related Financial Disclosures (TNFD) is modeled after the TCFD and focuses on nature and biodiversity-related risks. As natural ecosystems become more threatened by climate change, businesses and investors are increasingly seeking to understand their exposure to risks related to biodiversity loss, ecosystem degradation, and nature conservation efforts.
Sustainability Standards for Financial Reporting
These standards ensure ESG factors are integrated into financial statements:
- IFRS Sustainability Disclosure Standards
The IFRS Sustainability Disclosure Standards, developed by the IFRS Foundation, aim to standardize ESG reporting practices for global capital markets. These standards focus on bringing ESG disclosures into alignment with financial reporting, providing companies with clear guidance on integrating sustainability factors into their financial statements.
Regulatory Bodies Overseeing ESG Standards
These organizations set or influence ESG reporting requirements globally:
- FSB – Financial Stability Board
The Financial Stability Board (FSB) is an international body that monitors the global financial system and provides recommendations for financial stability. It was instrumental in creating the TCFD, a framework now widely used for disclosing climate-related financial risks. The FSB continues to work on ensuring the integration of ESG risks into the global financial system.
- IASB – International Accounting Standards Board
The International Accounting Standards Board (IASB) is responsible for developing global accounting standards. It has increasingly incorporated sustainability factors into its standards, particularly through the ISSB, ensuring that ESG reporting becomes a part of financial reporting across the globe.
- ISSB – International Sustainability Standards Board
The International Sustainability Standards Board (ISSB), formed under the International Financial Reporting Standards (IFRS) Foundation, sets global standards for sustainability disclosures. By integrating frameworks such as SASB and TCFD, ISSB aims to streamline ESG reporting, making it easier for companies to disclose material information to investors.
- EFRAG – European Financial Reporting Advisory Group
The European Financial Reporting Advisory Group (EFRAG) plays a crucial role in developing EU sustainability reporting standards. EFRAG extended its mission in 2022 following the new role assigned to EFRAG in the CSRD, providing Technical Advice to the European Commission in the form of draft European Sustainability Reporting Standards (ESRS) and/or draft amendments to these Standards.
- FASB – Financial Accounting Standards Board
The Financial Accounting Standards Board (FASB) established in 1973, is the independent, private- sector, not-for-profit organization that establishes financial accounting and reporting standards for public and private companies and not-for-profit organizations that follow Generally Accepted Accounting Principles (GAAP).
- SEC – U.S. Securities and Exchange Commission
The U.S. Securities and Exchange Commission (SEC) regulates financial reporting in the U.S. and has recently proposed rules for mandatory climate-related disclosures. This includes reporting on a company’s governance, risk management, and metrics related to climate change and other ESG factors.
Regional ESG Reporting Requirements
European Union (EU)
- CSRD – Corporate Sustainability Reporting Directive
The Corporate Sustainability Reporting Directive (CSRD) is a landmark regulation in the EU that significantly expands ESG disclosure requirements. It mandates detailed sustainability reporting for large companies and will eventually affect all companies listed in the EU.
- European Sustainability Reporting Standards (ESRS)
The European Sustainability Reporting Standards (ESRS) are mandatory EU disclosure rules under the Corporate Sustainability Reporting Directive (CSRD), requiring companies to report environmental, social, and governance (ESG) impacts using a double materiality framework (financial risks and societal/environmental effects). Developed by EFRAG, the standards include 12 requirements: two cross-cutting (general principles and disclosures) and ten topical standards covering climate, biodiversity, worker rights, and governance. Companies must disclose material ESG risks, strategies, and value-chain impacts alongside financial statements612.
- SFDR – Sustainable Finance Disclosure Regulation
The Sustainable Finance Disclosure Regulation (SFDR) requires financial institutions in the EU to disclose how sustainability risks are integrated into their decision-making processes. It also mandates transparency on the environmental impact of financial products.
- EU Taxonomy
The EU Taxonomy is a classification system that defines what constitutes a “sustainable” economic activity. It helps investors, companies, and governments identify which activities contribute to meeting the EU’s climate and environmental goals.
France
- Devoir de Vigilance (Duty of Care Law)
The Duty of Vigilance Law (2017) mandates large companies to implement due diligence plans identifying and preventing human rights and environmental risks across their operations, subsidiaries, and supply chains. Non-compliance allows legal action for damages, with courts empowered to enforce corrective measures.
- Sapin II Law (2017)
Sapin II Law establishes mandatory anti-corruption compliance programs for large companies, enforced by the French Anti-Corruption Agency (AFA), and introduces judicial settlements (CJIP) for corruption cases without admission of guilt, modeled on the U.S. Foreign Corrupt Practices Act.
- Circular Economy Law (2020)
The 2020 Circular Economy Law aims to reduce waste, phase out single-use plastics, and promote reuse/recycling, setting targets for 100% plastic recycling by 2025 and banning disposable plastics by 2040.
- Article 29, Energy and Climate Law (2021)
Article 29 of France’s 2021 Energy and Climate Law reinforces carbon neutrality commitments, requiring alignment of financial sector activities with national climate goals, including mandatory climate risk reporting for institutions.
United Kingdom (UK)
- UK Corporate Governance Code
The UK Corporate Governance Code sets standards for corporate governance for UK-listed companies, including the integration of ESG factors into governance practices, with particular emphasis on transparency and board-level accountability for ESG matters.
- UK Green Taxonomy
The UK Green Taxonomy is a government-led initiative that provides a framework for determining what constitutes “green” or environmentally sustainable activities within the UK. It supports sustainable investment practices and aims to align with the EU’s taxonomy.
- UK Stewardship Code
The UK Stewardship Code sets out principles for institutional investors to follow in managing assets responsibly. It encourages responsible ownership of companies and promotes sustainability and transparency in investment practices.
- Green Finance Strategy
The EU Green Finance Strategy (renewed 2021) mobilizes €1 trillion+ in sustainable investments to achieve climate neutrality by 2050, focusing on four pillars: transition finance (tools for decarbonization), inclusiveness (SME/individual access), financial sector resilience (climate risk integration), and global alignment (international standards). It expands the EU Taxonomy and supports the European Green Deal’s €470 billion/year climate investment needs. It also complements the ESG ratings regulation (2023), which imposes transparency requirements on providers, including methodology disclosures and conflict-of-interest management. This regulation aims to standardize ratings to improve comparability and trust in sustainable finance markets.
United States (U.S.)
- U.S. GAAP – Generally Accepted Accounting Principles
U.S. GAAP is the framework for accounting in the United States, and its increasingly recognizing the material impact of ESG factors. The U.S. financial regulators are working to integrate ESG disclosures into the GAAP framework to promote transparency.
- Corporate Governance Improvement and Investor Protection Act (H.R. 1187)
The Corporate Governance Improvement and Investor Protection Act (H.R. 1187)mandates ESG disclosures for public companies, requiring reporting on climate risks (direct/indirect emissions, fossil fuel assets), political spending, executive vs. employee pay ratios, workforce demographics, tax havens, cybersecurity risks, and Xinjiang supply chains. It establishes a Sustainable Finance Advisory Committee to guide SEC policies on sustainable investments and requires SEC reports on shareholder ESG coalitions and small business compliance challenges
- California SB 253 & SB 261
California SB 253 and SB 261 require large businesses operating in California to disclose their greenhouse gas emissions and climate-related financial risks. These laws aim to increase transparency in environmental impact reporting and drive state-level climate action.
Key ESG Initiatives and Resources
- SBTi – Science Based Targets initiative
The Science Based Targets initiative (SBTi) is a global leader in corporate climate action, providing a framework for companies to set verified emissions reduction targets aligned with the Paris Agreement’s 1.5°C goal. Unlike disclosure-focused standards, SBTi emphasizes actionable decarbonization, requiring firms to establish science-based targets (SBTs) for Scope 1, 2, and 3 emissions. Its methodologies are sector-specific and independently validated, making it a gold standard for investors and regulators, including the EU, which references SBTi in policies like the CSRD. As of early 2025, over 10,889 companies across regions and industries use SBTi to demonstrate credible climate commitments, bridging the gap between voluntary pledges and mandatory reporting frameworks like TCFD and ISSB.
- ISO 26000 – Social Responsibility Guidance
ISO 26000 provides international guidance for organizations to integrate social responsibility into their operations, emphasizing accountability, transparency, ethical behavior, and respect for human rights, laws, and stakeholder interests. It outlines 7 core subjects: organizational governance, human rights, labor practices, environmental sustainability, fair operating practices, consumer protection, and community development, urging businesses to address societal and environmental impacts through holistic strategies that balance stakeholder expectations with sustainable development goals. The standard promotes stakeholder engagement and ethical decision-making to enhance trust, mitigate risks, and align operations with global norms.
- UN SDGs – United Nations Sustainable Development Goals
The United Nations Sustainable Development Goals (UN SDGs) provide a global framework for tackling sustainability challenges. These 17 goals guide businesses in aligning their ESG strategies with global sustainability objectives.
- World Economic Forum (WEF)
The World Economic Forum (WEF) is a global organization fostering public-private cooperation to address critical challenges, with sustainability as a core focus. It integrates ESG principles across its operations, events, and initiatives, aiming for net-zero emissions by 2030 and LEED-certified offices. The WEF drives sustainability globally through stakeholder coalitions, standardized ESG metrics, and platforms like its Centre for Nature and Climate, while promoting sustainable practices in its supply chains, events (ISO 20121-certified), and employee policies.
- Invest Europe
Invest Europe is the leading European association representing private equity, venture capital, and infrastructure sectors, along with institutional investors such as pension funds and insurers. Founded in 1983 (formerly EVCA) and rebranded in 2015, it promotes sustainable, long-term investments in businesses across Europe, emphasizing innovation, job creation, and economic growth. The organization advocates for policy alignment, provides industry-leading research, and enforces professional standards to ensure transparency and responsible investment practices. Headquartered in Brussels, it serves as a key voice for private capital, fostering collaboration between investors, policymakers, and entrepreneurs.
- PCAF – Partnership for Carbon Accounting Financials
The Partnership for Carbon Accounting Financials (PCAF) provides a global standard for financial institutions to measure and disclose financed emissions. It helps organizations understand and report the carbon footprint associated with their lending and investment activities.
- UNEP FI – UN Environment Programme Finance Initiative
The UN Environment Programme Finance Initiative (UNEP FI) promotes sustainable banking, insurance, and investment. It works with the financial sector to integrate sustainability into financial decision-making, contributing to a green economy.
- UNPRI
The United Nations Principles for Responsible Investment (UNPRI or PRI) is a global initiative that encourages institutional investors to incorporate environmental, social, and governance (ESG) factors into their investment decisions and ownership practices. By signing up to six voluntary principles, signatories commit to responsible investment that aims to generate sustainable, long-term returns and contribute to a more sustainable financial system. The PRI is supported by the United Nations and has thousands of signatories worldwide, representing tens of trillions of dollars in assets under management.
- Equator Principles
The Equator Principles offer a risk management framework for financial institutions to assess and manage environmental and social risks in projects. It helps organizations ensure their investments are aligned with sustainable practices.
- EDCI – Energy Data and Climate Initiative
The Energy Data and Climate Initiative (EDCI) supports transparency in energy and climate data reporting. It encourages the integration of climate risks into energy and infrastructure investments, driving greater accountability for sustainability practices.
- IEA – International Energy Agency
The International Energy Agency (IEA) provides essential research and policy guidance on energy sustainability. Its reports and insights help governments, businesses, and organizations transition to more sustainable energy practices.
- IPCC – Intergovernmental Panel on Climate Change
The Intergovernmental Panel on Climate Change (IPCC) is the leading body for climate science assessments. It provides scientific evidence on climate change, offering guidance to governments, policymakers, and businesses on the risks and actions required to mitigate global warming.
The non-financial, ESG, and sustainability reporting landscape is constantly evolving. Businesses reporting their sustainability performance can refer to or use a variety of international and national frameworks, standards and guidelines. Get the latest industry updates and learn more about the available sustainability and ESG frameworks and standards to support your company’s reporting.
Our team of 70+ ESG experts can help you prepare for, and monitor, current and emerging ESG regulations, including ESRS (CSRD) compliance and SFDR Principal Adverse Impact (PAI) calculations, to ensure you stay compliant and remain competitive. We support you with climate target setting, Science Based Targets (SBTi) alignment, CDP and TCFD disclosure, and mapping your reporting strategy across leading frameworks like the ESRS, , GRI or PAI calculation. We also advise on emerging topics such as AI-related ESG expectations. Whether you’re just getting started or looking to optimize your approach, we’ll help you build a future-ready ESG strategy.
