Reporting frameworks

  • Release version: Washingtondc
  • Updated February 1, 2024
  • 2 minutes to read
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    Summary of Reporting frameworks Environmental, Social, and Governance Management

    The ESG Management application facilitates organizations in reporting their economic, environmental, social, and governance performance through various sustainability reporting frameworks. It includes the ESG content accelerator, a centralized repository containing frameworks, citations, metric definitions, and emission factors, aiming to expedite the adoption of ESG frameworks.

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    Note: With the Xanadu release, the Sustainability Accounting Standards Board (SASB) and Global Reporting Initiative (GRI) content accelerator are deprecated but will remain supported in existing instances.

    Key Features

    • The GRI Standards promote transparent reporting on organizations' impacts on sustainability.
    • The SASB framework sets standards for disclosing financially material sustainability information to investors.
    • The ESG Management application includes the GRI Content Accelerator and SASB content pack for enhanced functionality.
    • A new field titled "Reporting requirements and recommendations" is added to the citation form, providing guidelines from the reporting organization.

    Key Outcomes

    Organizations using the ESG Management application can effectively calculate and report their greenhouse gas (GHG) emissions intensity ratios and other relevant metrics. This includes:

    • Calculating the intensity ratio based on absolute GHG emissions and organization-specific metrics.
    • Separately reporting intensity ratios for different types of GHG emissions (Scope 1, Scope 2, and Scope 3).
    • Providing a breakdown of GHG emissions intensity ratios by business unit, country, source type, and activity type to enhance transparency and comparability.

    The ESG Management application uses several sustainability reporting frameworks to help organizations report their economic, environmental, social, and governance performance. The Unified content management application is a centralized repository of frameworks, citations, metric definitions, and emission factors. Using this application accelerates the adoption of ESG frameworks.

    Important:

    Starting with the Xanadu release, Sustainability Accounting Standards Board (SASB) Global Reporting Initiative (GRI) content accelerator are deprecated. It will be hidden and no longer activated on new instances but will continue to be supported. The Unified content management application provides the latest experience for this functionality.

    The GRI Standards enable any organization to understand and report on their impacts on the economy, environment, and people in a comparable and credible way, thereby increasing transparency on their contribution to sustainable development.

    The Sustainability Accounting Standards Board (SASB) is an ESG guidance framework that sets the standards for the disclosure of financially material sustainability information by companies to their investors. SASB Standards enable businesses to identify, manage, and communicate financially material sustainability information to their investors.

    The ESG Management application is shipped with the Global Reporting Initiative (GRI) Content Accelerator for Operational Sustainability and Sustainability Accounting Standards Board (SASB) content pack.

    Updates in the citation form

    When the ESG Management application is installed in the instance, the citation form displays a new field titled as Reporting requirements and recommendations in the Reporting section. This field provides the guidelines about the reporting requirements provided by the reporting organization.
    Note:
    The Reporting requirements field is displayed only when the ESG Management application is installed.
    See the following sample information that is provided by the reporting organization in the Reporting requirements field in the citation form: The reporting organization shall report the following information: a. GHG emissions intensity ratio for the organization. b. Organization-specific metric (the denominator) chosen to calculate the ratio. c. Types of GHG emissions included in the intensity ratio; whether direct (Scope 1), energy indirect (Scope 2), and/or other indirect (Scope 3). d. Gases included in the calculation; whether CO2, CH4, N2O, HFCs, PFCs, SF6, NF3, or all. 2.7 When compiling the information specified in Disclosure 305-4, the reporting organization shall: 2.7.1 calculate the ratio by dividing the absolute GHG emissions (the numerator) by the organization-specific metric (the denominator); 2.7.2 if reporting an intensity ratio for other indirect (Scope 3) GHG emissions, report this intensity ratio separately from the intensity ratios for direct (Scope 1) and energy indirect (Scope 2) emissions. Reporting recommendations 2.8 When compiling the information specified in Disclosure 305-4, the reporting organization should, where it aids transparency or comparability over time, provide a breakdown of the GHG emissions intensity ratio by: 2.8.1 business unit or facility; 2.8.2 country; 2.8.3 type of source; 2.8.4 type of activity.