ESG Regulations
Here are the ESG standards, regulations, and certifications:
- International Organization for Standardization (ISO) 14001 and 26000 – Voluntary: ISO 14001 provides a framework for companies to manage their environmental impacts, while ISO 26000 provides guidance on social responsibility.
- Global Reporting Initiative (GRI) – 1997 – Voluntary: Provides a comprehensive sustainability reporting framework to help organizations disclose their economic, environmental, and social impacts.
- Dow Jones Sustainability Indices (DJSI) – Provides a benchmark for investors to track the performance of sustainability leaders in each industry.
- Carbon Disclosure Project (CDP) – Voluntary: Provides a global disclosure platform for companies to report their environmental impacts and risks.
- Principles for Responsible Investment (PRI) – Voluntary: Provides a framework for investors to incorporate ESG factors into their investment decision-making and ownership practices.
- International Integrated Reporting Council (IIRC) – Voluntary: Provides a framework for companies to communicate how they create value over time by focusing on the connection between financial, environmental, social, and governance (ESG) factors.
- Sustainability Accounting Standards Board (SASB) – Voluntary: Provides industry-specific standards for the disclosure of financially material sustainability information to investors.
- Task Force on Climate-related Financial Disclosures (TCFD) – Voluntary: Provides guidance on how companies should disclose climate-related financial risks and opportunities in their annual financial filings.
- United Nations Sustainable Development Goals (UN SDGs) – Voluntary: Provides a set of global goals aimed at ending poverty, protecting the planet, and ensuring that all people enjoy peace and prosperity by 2030.
- Europe’s Sustainable Finance Disclosure Regulation (SFDR) – 2019 – Mandatory: Intends to provide investors with more information on the ESG risks of their investments and encourage investment in sustainable companies.
- ESG Certifications: BREEAM, Tech Zero, B-Corp.
