Your guide to reporting frameworks

In today's manufacturing landscape, sustainability is more than just a buzzword; it's a critical component of long-term business success. As senior leaders, understanding and implementing effective sustainability reporting is essential to demonstrate your organisation's commitment to environmental, social, and governance (ESG) principles. However, sustainability reporting can be a complex task. It is crucial to choose the right reporting framework to ensure clarity, transparency, and relevance.

Here, we provide a comprehensive overview of the three main sustainability reporting frameworks to help your organisation make informed decisions.

Global Reporting Initiative (GRI)

Purpose: The Global Reporting Initiative (GRI) offers a universal set of standards for comprehensive sustainability reporting. These standards are designed to provide detailed and comparable information about an organisation's economic, environmental, and social impacts.

Key Benefit: GRI is suitable for any organisation, regardless of size or industry. It provides a

framework for transparent disclosure on a wide range of sustainability issues, from greenhouse gas emissions and water usage to labour practices and human rights. By using GRI standards, organisations can ensure they are covering all critical aspects of sustainability.

Ideal For: GRI is a must-use for organisations seeking to give a detailed and broad account of their sustainability practices. It is especially beneficial for those aiming to communicate a holistic commitment to sustainability to a diverse group of stakeholders, including customers, employees, and the wider community. Manufacturing companies that need to report on various sustainability aspects comprehensively will find GRI to be an excellent choice.

Sustainability Accounting Standards Board (SASB)

Purpose: The Sustainability Accounting Standards Board (SASB) provides industry-specific standards for disclosing material sustainability information to investors. These standards help organisations identify and report on the sustainability issues that are most likely to impact financial performance.

Key Benefit: SASB standards enable organisations to focus on the sustainability factors that significantly influence financial outcomes. By providing industry-specific guidelines, SASB helps companies deliver precise and relevant information to investors, highlighting how sustainability initiatives can affect financial health and performance.

Ideal For: SASB is indispensable for entities focused on communicating their financial sustainability performance to investors. Publicly traded companies, in particular, benefit from SASB standards as they provide investors with insights into how the company's sustainability practices impact financial performance. If your organisation's primary goal is to attract and retain investors by showcasing strong financial sustainability, SASB is the framework to use.

Task Force on Climate-related Financial Disclosures (TCFD)

Purpose: The Task Force on Climate-related Financial Disclosures (TCFD) offers guidelines for reporting clear and consistent information on climate-related financial risks. TCFD focuses on the financial implications of climate change and how these risks and opportunities are managed.

Key Benefit: TCFD emphasizes the financial impact of climate change, making it a crucial tool for risk management. It provides a structured approach to identifying, managing, and disclosing climate-related risks and opportunities. TCFD guidelines help organisations plan for long-term resilience by integrating climate risk into financial planning.

Ideal For: TCFD is essential for companies in sectors highly impacted by climate change, such as manufacturing, energy, and transportation. It is also crucial for organisations with a strong focus on long-term risk management.

Businesses that need to demonstrate their preparedness for climate-related risks to stakeholders, including investors, regulators, and customers, will find TCFD guidelines particularly beneficial.

Why it matters

Choosing the appropriate reporting framework aligns your organisation with global standards, enhancing credibility and stakeholder trust. It also ensures that your sustainability reporting meets specific investor and regulatory requirements, which is increasingly important in today's regulatory environment.

By adopting a suitable framework, your organisation can provide transparent, reliable, and relevant information that addresses the concerns of various stakeholders, from investors and regulators to customers and employees.

In conclusion, selecting the right sustainability reporting framework is a strategic decision that can significantly influence your organisation's reputation, investor relations, and long-term success.

By understanding the nuances of GRI, SASB, and TCFD, you can make an informed choice that aligns with your organisational goals and sustainability vision.