What are the various ESG frameworks and how are they different from each other?
Back to FAQs home
- The World Economic Forum (WEF) ESG framework - This framework covers a range of ESG factors, including climate change, biodiversity loss, social inequality, and technological change. It provides guidance on how companies can integrate ESG issues into their business strategy and operations, as well as how investors can incorporate ESG factors into their investment decisions.
- The Global Reporting Initiative (GRI) - This is a widely used framework that provides guidelines for sustainability reporting. It covers a broad range of ESG issues, including governance, human rights, labor practices, and environmental impact.
- The Sustainability Accounting Standards Board (SASB) - This framework focuses on industry-specific ESG issues, providing guidance on the ESG factors that are most material to each industry.
- The United Nations Sustainable Development Goals (SDGs) - This framework consists of 17 goals that aim to promote sustainable development globally, covering a broad range of issues from poverty to climate change.
- The Task Force on Climate-related Financial Disclosures (TCFD) - This framework provides guidance on how companies can disclose their climate-related risks and opportunities, with a focus on financial impacts.
Each of these frameworks offers a unique perspective on ESG issues and can be used by investors and companies to guide their ESG practices. Ultimately, the choice of framework depends on the specific needs and goals of the user.