Top ESG Reporting Frameworks, Which One Should You Use?

Are you confused about which ESG reporting frameworks you should follow? You’re not alone; this question comes to every businessman’s mind. 

 There are many ESG reporting framework options available, like BRSR,GRI, CDP, SASB, TCFD, CSRD standards, etc., and choosing the right one can be confusing. Each framework works with a different focus; some highlight financial impact, while others cover broader sustainability goals.

In this blog, we’ll explain top ESG reporting frameworks in a simple way and help you figure out which one works best for your business, whether you’re just starting your ESG journey or looking to improve your ESG reporting. 

What Is an ESG Reporting Framework?

An ESG reporting framework is a set of rules or guidelines that help companies share their environmental, social, and governance (ESG) efforts in a clear and official way. 

Sustainability standards help companies know exactly what ESG topics to cover in their reports. This ensures that the information is complete, clear, and transparent. 

 The ESG reporting frameworks are different from ESG standards. Frameworks explain how to report, while ESG standards explain what to report. Both work together to help you create an effective and complete ESG report. 

By using the right framework, businesses can improve their ESG performance and avoid penalties. 

Why Is ESG Reporting Essential?

 ESG reporting is important for businesses because it shows how they care for the environment, people, and ethical practices.

An effective report helps companies build trust, manage risks, attract investors, and enhance their goodwill in the market. It ensures long-term growth in a sustainable way.  

Overview of Major ESG Reporting Frameworks

Here’s an overview of major ESG reporting frameworks that play an important role in your ESG report. Each framework has a different role in the report. Let’s explain the ESG reporting frameworks in a simple way.  

BRSR — (Business Responsibility and Sustainability Reporting) Framework

The BRSR (Business Responsibility and Sustainability Reporting) is a reporting framework made by SEBI for certain listed companies in India. 

It asks companies to share information about their Environmental, Social, and Governance (ESG) efforts. This helps make transparency, responsible business, and gives investors clear and comparable ESG data to make better decisions.

GRI Standards — Global Reporting Initiative

The Global Reporting Initiative (GRI Standards) is focused on sustainability impact reports. The Global Reporting Initiative (GRI) is an international group that helps companies share reports on how they impact the environment, people, and society.

GRI Standards are the most commonly used for making sustainability reporting. 

Businesses that use GRI standards often find it easier to communicate with stakeholders and handle risks better. It helps track KPI numbers to better understand your impact on the environment, economy, and society.

CSRD Framework – Corporate Sustainability Reporting Directive 

The Corporate Sustainability Reporting Directive (CSRD) is a legal framework, while ESRS are the standards to be followed under it.

Companies must follow the European Sustainability Reporting Standards (ESRS) and explain how their business plans handle risks like climate change, human rights issues, and workplace safety.

CSRD standards focus on both financial and social impact; they cover several topics like employee health, fairness, and more.

TCFD Standards — Task Force on Climate-Related Financial Disclosures

The Task Force on Climate-Related Financial Disclosures (TCFD) provides a globally recognized framework of recommendations for companies to disclose climate-related financial risks and opportunities. TCFD was established by the Financial Stability Board (FSB).

CDSB Framework – Climate Disclosure Standards Board

The Climate Disclosure Standards Board (CDSB) has been consolidated into the International Sustainability Standards Board (ISSB), and its work is now part of the IFRS Sustainability Disclosure Standards.

It is a framework for reporting environmental and climate-related information that helps companies share clear environmental information via mainstream corporate reports, so investors can make better decisions. 

It focuses on four main areas, including greenhouse gas emissions, climate risks, opportunities, and financial reporting related to climate change. Standardizing reporting helps attract investors. CDSB Standards work well with other standards like GRI and SASB standards. 

SASB Standards — Sustainability Accounting Standards Board 

The SASB standards (Sustainability Accounting Standards Board) developed a set of industry-specific ESG disclosure standards to help companies report financially relevant sustainability information to investors. 

It covers five sustainability areas: social capital, environment, human capital, innovation and business model, and leadership & governance. 

The Sustainability Accounting Standards Board (SASB) is a non-profit group that develops sustainability reporting standards for companies.

These SASB Standards help businesses share important information with investors. SASB standards build their standards through strong research and input from many different people.

CDP – Carbon Disclosure Project

The CDP is a non-profit organisation that collects information about companies’ environmental efforts and performance.

It works like a reporting system for environmental topics and gives companies a score to show how well they manage their impact on the environment.

Each year, companies CDP reports about their environmental efforts and how they reduce risks. Investors and businesses use this information to understand climate-related risks for those companies.

Important Terms Explained: Frameworks vs. Standards vs. Directives

Important Terms Explained: Frameworks vs. Standards vs. Directives
Type	Purpose	Examples
Framework	Explains how to structure and present ESG information.	TCFD, BRSR, CDSB
Standards	Defines what ESG topics and metrics to report.	GRI, SASB, ESRS, ISSB
Directive / Law	A legal rule that makes ESG reporting mandatory	CSRD (EU), SEC (US upcoming)
Guidelines	Rules & Practices that are best for the Company and should be followed.	UNGC, ISO 26000, OECD, ILO
Disclosure Platforms	Tools for submitting and scoring ESG data	CDP, DJSI, S&P CSA

 

How to Choose the Right ESG Reporting Frameworks for Your Company?

There are so many ESG reporting frameworks available choosing the right frameworks can be tricky for you. Sustainability standards explain what companies should include in their ESG reports. They help make the reports more detailed, consistent, and easier for stakeholders to trust and compare.

Let’s know what you should keep in mind while choosing the right ESG reporting frameworks for your business.  

• Pick an ESG reporting framework that fits your industry and company type
• Check what ESG topics the framework covers
• Make sure it meets your country’s rules and regulations, like SEBI. 
• Think about who will read your report (investors, customers, employees) and what they want to know.
• Always check new rules and laws, which may require certain types of ESG reporting.
• Check if combining more than one ESG reporting framework gives you a clearer report.

Integration with Business Strategy and Compliance

Combining compliance with business strategy is important for companies that want to follow the rules and meet their ESG goals.

• Understand what compliance involves for your business, including laws, regulations, and ethical standards. 
• Make sure top leaders support and treat compliance as an important part of the business. 
• Make sure compliance is part of your overall business strategy. 
• Set clear, measurable goals for compliance that support your business objectives and reduce risk.
• Regularly assess where your company might face compliance risks and focus on fixing the most serious ones.
• Encourage teams across departments, like legal, finance, and operations to work together on compliance efforts.
• Create strong policies and processes to monitor and manage compliance, and update them as needed to improve over time.  

Mandatory vs. Voluntary ESG Reporting – Country-Wise Matrix

Understanding which ESG reporting rules are mandatory and which are voluntary can be confusing. Look at the table below to understand the main frameworks, their type, whether they are required or optional, and where they apply: 

 

Mandatory vs. Voluntary ESG Reporting – Country-Wise Matrix
Standard / Framework	Type	Voluntary / Mandatory	Region / Applicability
BRSR (SEBI India)	Framework	Compulsory for the top 1000 listed companies	India
GRI Standards	Standards	Widely used voluntarily	Global
SASB Standards	Standards	Voluntarily	Global (esp. USA)
TCFD	Framework	Mandatory in the United Kingdom, NZ, Japan	Adopting on a Global level
CSRD + ESRS	Directive + Standards	Mandatory	EU + non-EU firms with greater than €150M turnover in Europe
ISSB (IFRS S1 & S2)	Standards	Mandatory in Nigeria; in the UK from 2026, Australia	Will be reaching on Global level soon
CDP	Platform	Voluntary	On a Global level, mostly used in the Supply Chain
UNGC / ISO 26000 / OECD / ILO	Guidelines	Voluntary	Global
SEC Climate Disclosure (Proposed)	Law (pending)	Mandatory, expected by 2025	Public Companies in the USA

Benefits of Hiring a Professional ESG Consultancy For Reporting 

There are several benefits of hiring an ESG consultancy for reporting, such as: 

Expert Guidance on ESG Reporting Standards

ESG consultants have deep knowledge of global ESG reporting frameworks and standards like GRI, SASB, and TCFD Standards. They ensure your ESG reports meet the latest regulatory requirements and stakeholder expectations, which makes your disclosures accurate and reliable.

Make Transparency in Reports 

An experienced ESG consultancy ensures your report is clear and under the official guidelines. It makes transparency in the report, which builds trust among investors, customers, and regulators. 

When selecting a reporting framework, it’s important to ensure it aligns with relevant sustainability standards for your industry and region.

Customised Reporting That Aligns with Business Goals 

ESG consultants customised ESG reports to meet your company’s specific risks, opportunities, and strategic objectives. This alignment ensures your reporting supports overall business growth and risk management. 

Increased Stakeholder Engagement

Professional consultants help you share clear and trustworthy ESG information that makes it easier to connect with investors, customers, employees, and others. It helps to build stronger relationships and a better reputation. 

Access to Advanced Tools and Technologies

Many ESG consultancies use advanced software and analytics tools to track and report ESG metrics. This technology helps to increase accuracy and allows for ongoing monitoring and improvement.

Why You Should Hire an ESG Consultancy?

You will get more benefits and growth in your business by hiring an ESG consultancy such as: 

Build a Stronger Brand and Gain Investor Confidence

Hiring an ESG consultant can enhance your company’s reputation and earn trust from investors. These experts understand ESG reporting frameworks, strategies and can create effective strategies that follow ESG guidelines.

When a company cares about the environment and social issues, it shows responsibility and a commitment to sustainability. This makes it easier to meet all applicable rules and attract investors.

Find New Sustainable Business Opportunities

A sustainability advisor helps your company grow in a smart and environmentally friendly way.

With their ESG expertise, they guide you to make better decisions that support long-term success. They also find new trends and ideas that can make your business well-reputed, save operational costs, and open doors to new markets.

Enhance Employee Happiness and Loyalty

ESG consultants assist in making a positive workplace where employees feel valued and supported. This leads to happier employees, more loyal and productive.

ESG assessments help companies identify how their actions impact the environment, people, and governance. This insight helps identify areas for improvement.

Ignoring employee needs can cause problems, so ESG advisors focus on building a healthy office culture while planning the ESG strategy.

Attract More Investment

Companies that follow ESG practices attract more interest from global investors. Many investors prefer to back businesses that show responsibility and strong ESG performance. 

Why Is Sustrack a Good Choice for Your ESG Reporting?

Choosing Sustrack for your ESG reporting means partnering with experts who deliver clear, accurate, and customized solutions that align with ESG reporting frameworks. We help you build trust with stakeholders and drive sustainable growth. 

With Sustrack, your ESG reporting becomes transparent and effective, which drives responsible business success. Contact us today for your effective ESG reporting.

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