Introduction: Why the ESG Reporting Landscape Is So Complex
If you've ever tried to navigate the world of ESG reporting and felt overwhelmed by acronyms — GRI, ISSB, TCFD, ESRS, BRSR, SASB, CDP, TNFD — you're not alone. The ESG disclosure landscape is genuinely complex, having evolved over three decades through hundreds of voluntary initiatives, regulatory mandates, and sector-specific programs developed independently across different jurisdictions and industries.
But complexity has a structure, and that structure is increasingly becoming clearer. The global ESG reporting ecosystem can be understood through three distinct layers:
- Global frameworks — Principle-based guidance that shapes the "what" and "why" of sustainability disclosure without specifying exact metrics (TCFD, TNFD, Integrated Reporting, WEF Stakeholder Capitalism Metrics).
- Global standards — Detailed requirements specifying exactly what data to disclose, how to measure it, and how to present it (GRI, ISSB IFRS S1 & S2, ESRS, SASB, GHG Protocol, CDP).
- Country and sector standards — Jurisdiction-specific or industry-specific requirements that adapt global standards to local regulatory contexts or sector ESG hotspots (CSSB in Canada, BRSR in India, ASRS in Australia, RJC in jewellery, ResponsibleSteel in steel).
This guide covers all three layers — giving you a definitive, current reference for every major framework, standard, and mandate relevant to companies reporting on ESG in 2026.
Frameworks vs. Standards: The Critical Distinction
One of the most important — and most commonly confused — distinctions in ESG reporting is between a framework and a standard. The Global Reporting Initiative defines the difference clearly, and understanding it is essential for knowing which tools apply to your situation.
A framework provides broad principles, contextual guidance, and a conceptual structure for thinking about sustainability disclosure. It defines the direction of information and the goals of reporting, but does not specify exact metrics, calculation methodologies, or disclosure formats. Frameworks are typically used when well-defined standards do not yet exist for a topic, or to provide the conceptual architecture within which standards operate.
Examples: TCFD, TNFD, Integrated Reporting, WEF SCMA standard specifies exact disclosure requirements: which metrics to report, how to calculate them, what boundary definitions apply, and what format to use. Standards involve a public interest focus, independent governance, due process, and public consultation — giving them a higher level of credibility and comparability than frameworks. Standards are what regulators mandate and assurance providers verify against.
Examples: GRI Standards, ISSB IFRS S1 & S2, ESRS, SASB, GHG ProtocolPART ONE — GLOBAL FRAMEWORKS
TCFD — Task Force on Climate-Related Financial Disclosures
Established: 2015 by the Financial Stability Board · Disbanded: October 2023 (monitoring transferred to IFRS Foundation) · Supported by: 3,000+ organizations, $27.2T combined market cap
The TCFD was established by the Financial Stability Board in the wake of COP21 and the Paris Agreement to develop recommendations for effective climate-related financial disclosures. Its 2017 recommendations became the single most influential voluntary climate disclosure framework in history — adopted by regulators, exchanges, and companies across more than 100 countries.
The TCFD framework is structured around four core pillars that correspond to how organizations think about and manage climate risk:
Board oversight of climate-related risks and opportunities. Management's role in assessing and managing those risks. How climate is integrated into board agenda, committees, and compensation structures.
Climate-related risks and opportunities over short, medium, and long time horizons. Impact on business, strategy, and financial planning. Resilience of strategy under different climate scenarios (1.5°C, 2°C, BAU).
How the organization identifies and assesses climate-related risks. How those risks are managed. How climate risk management is integrated into the organization's overall enterprise risk management.
Metrics used to assess climate-related risks and opportunities. Scope 1, 2, and 3 GHG emissions. Targets used to manage climate risks and performance against those targets.
TNFD — Taskforce on Nature-Related Financial Disclosures
The TNFD was established in 2021 as nature's equivalent of the TCFD — a framework for companies and financial institutions to report on nature-related risks and opportunities. Its final recommendations (v1.0) were published in September 2023 and have since been adopted or endorsed by over 400 organizations globally.
Where TCFD focuses on climate, TNFD covers the full spectrum of nature: biodiversity, land use, freshwater, ocean systems, and ecosystem services. The core TNFD disclosure framework applies the same four-pillar structure as TCFD — Governance, Strategy, Risk & Impact Management, and Metrics & Targets — adapted for nature-related dependencies and impacts.
The LEAP Approach
TNFD's practical methodology for assessing nature-related issues is the LEAP approach — a four-step process:
Locate your interface with nature — identify where your business and value chain interact with natural ecosystems, including high-priority locations for biodiversity and ecosystem services.
Evaluate your dependencies and impacts on nature — what does your business rely on from nature, and what impacts does it have on it? Use the ENCORE database and other nature data tools.
Assess your material nature-related risks and opportunities — physical risk, transition risk (regulatory, market), and systemic risk arising from nature loss. Apply the materiality lens.
Prepare to respond — develop strategy, set targets aligned with the Science Based Targets for Nature (SBTN), and prepare TNFD-aligned disclosures for inclusion in annual reports and financial filings.
IIRC — International Integrated Reporting Council
The IIRC was established in 2010 to promote integrated thinking and integrated reporting — the practice of communicating how an organization creates, preserves, or erodes value over time across financial, manufactured, intellectual, human, social, and natural capitals.
The IIRC produced the Integrated Reporting (<IR>) Framework, which remains the most holistic approach to corporate reporting available — connecting financial performance with the full range of capitals that an organization depends on and impacts. It is particularly influential in South Africa (where integrated reporting is mandatory for JSE-listed companies), Japan, and the UK.
In 2021, the IIRC merged with SASB to form the Value Reporting Foundation (VRF), which in turn was consolidated into the IFRS Foundation as part of the ISSB in August 2022. While the institutional home has changed, the Integrated Reporting Framework remains a live and influential reference — particularly as ISSB S1 draws heavily on its multi-capital thinking.
WEF Stakeholder Capitalism Metrics
In 2020, the World Economic Forum's International Business Council — representing 120+ global CEOs — published a set of universal ESG metrics and disclosures called the Stakeholder Capitalism Metrics (SCM), developed in collaboration with Deloitte, EY, KPMG, and PwC. The initiative was designed to create a core set of comparable, cross-sector ESG data points that companies could report in their mainstream financial filings.
The WEF SCM framework covers 21 core metrics and 34 expanded metrics organized across four pillars:
Governing purpose, board quality and composition, material issues affecting stakeholders, anti-corruption policies, and alignment of strategy with risk and opportunity management.
GHG emissions (Scopes 1, 2, 3), water consumption and withdrawal, land use, biodiversity impacts, and alignment with the Paris Agreement and science-based targets.
Dignity and equality (gender pay ratio, diversity), health and wellbeing (lost time injury rate, wellbeing metrics), skills development (training hours, future of work investment).
Employment and wealth generation (number employed, total tax paid, total R&D expenditure), innovation, community investment, and total value distributed to stakeholders.
The WEF SCM are designed to build on existing GRI, SASB, TCFD, and CDP disclosures — not replace them. Over 150 major companies report against the Stakeholder Capitalism Metrics, including KPMG, LSEG, Nestlé, and Bank of America. Voluntary
UN Global Compact
The United Nations Global Compact (UNGC) is the world's largest corporate sustainability initiative, with over 20,000 participating companies across 160+ countries. Founded in 2000, it is a voluntary commitment-based framework built around Ten Principles covering human rights, labour standards, environmental responsibility, and anti-corruption — derived from the Universal Declaration of Human Rights, the ILO Declaration on Fundamental Principles and Rights at Work, and the Rio Declaration on Environment and Development.
UNGC signatories commit to integrating the Ten Principles into their business strategy and operations, and to reporting annually on their progress through a Communication on Progress (COP). The UNGC framework also maps directly to the UN Sustainable Development Goals (SDGs), providing companies with a structured approach to contributing to the 2030 Agenda.
While the UNGC is a commitment and reporting framework rather than a technical disclosure standard, it is widely used as a foundational sustainability governance tool — particularly in Europe, Latin America, and Asia — and is referenced by GRI, ESRS, and CDP as a complementary framework.
PART TWO — GLOBAL STANDARDS
GRI — Global Reporting Initiative
The Global Reporting Initiative (GRI) is the oldest, most widely adopted, and most comprehensive sustainability disclosure standard in the world. Founded in 1997 and now headquartered in Amsterdam, GRI has been used by companies in over 100 countries to disclose their sustainability impacts on the economy, environment, and people.
GRI Standards are structured in three tiers:
Apply to all organizations reporting under GRI. Cover foundational requirements: how to use GRI, general disclosures about the organization, and how to determine material topics. Significantly revised in October 2021 (GRI 2: General Disclosures 2021).
GRI 1, 2, 3Industry-specific guidance identifying the most likely material topics for companies in particular sectors. GRI released its first Sector Standard (Oil & Gas) in October 2021. Agriculture, Aquaculture & Fishing came into effect January 2024. 38+ additional sector standards in development.
GRI 11–40 (sector-specific)Disclosure requirements for specific sustainability topics — GHG emissions (GRI 305), waste (GRI 306), water (GRI 303), diversity (GRI 405), human rights (GRI 411), etc. Companies select applicable Topic Standards based on their material topics.
GRI 200–400 seriesGRI and CSRD/ESRS Alignment
GRI and EFRAG entered a collaborative agreement to align GRI Standards with the European Sustainability Reporting Standards (ESRS). A formal interoperability mapping has been published, allowing companies that report under GRI to simultaneously meet significant portions of their ESRS disclosure obligations — reducing duplication for companies disclosing in both frameworks.
ISSB — IFRS S1 & S2: The Global Baseline
The International Sustainability Standards Board (ISSB) was established in November 2021 by the IFRS Foundation — the same body that governs international financial reporting standards — to develop a single global baseline of sustainability disclosure standards for capital markets. In June 2023, the ISSB published its first two standards, now adopted or being adopted across more than 30 jurisdictions worldwide.
The general sustainability disclosure standard — covering governance, strategy, risk management, and metrics & targets across all sustainability topics that are material to a company's enterprise value. S1 requires companies to disclose all sustainability-related risks and opportunities that could reasonably be expected to affect cash flows, access to finance, or cost of capital over short, medium, or long time horizons.
Materiality concept: Single (financial) materiality — focused on what matters to investors and providers of financial capital. This distinguishes it from ESRS/CSRD, which requires double materiality.
Mandatory or being mandated in 30+ jurisdictionsThe climate-specific standard, fully integrating the TCFD framework and building upon it with more specific requirements. S2 requires disclosure of physical and transition climate risks and opportunities, climate scenario analysis, GHG emissions (Scopes 1, 2, and 3), and climate-related targets and transition plans.
Industry-specific guidance: S2 includes industry-based application guidance derived from SASB Standards — covering 68 industries with sector-specific climate metrics. Companies applying S2 are required to consider this sector guidance.
Mandatory or being mandated in 30+ jurisdictionsThe ISSB Architecture — What Got Consolidated Into It
The ISSB consolidated several predecessor organizations and frameworks, creating a single coherent global baseline:
Merged into IFRS Foundation January 2022. CDSB's environmental reporting framework informed the development of IFRS S2 and the approach to connecting sustainability with financial reporting.
Merged into IFRS Foundation August 2022. SASB's 77 industry-specific standards were incorporated as the industry-based guidance within IFRS S2. IIRC's multi-capital framework informed IFRS S1's broader sustainability disclosure approach.
Fully integrated into IFRS S2. The four TCFD pillars (Governance, Strategy, Risk Management, Metrics & Targets) form the structural backbone of S2. The IFRS Foundation took over TCFD monitoring in 2024 following TCFD's disbanding.
SASB — Sustainability Accounting Standards Board
SASB, now operating under the IFRS Foundation as part of the ISSB, developed the most granular industry-specific sustainability disclosure standards in existence. The SASB Standards cover 77 industries across 11 sectors, each with tailored disclosure topics and quantitative performance metrics for sustainability risks and opportunities "reasonably likely to materially affect the financial condition or operating performance" of a typical company in that industry.
SASB applies a financial materiality lens — focused on risks and opportunities that affect enterprise value — making it the most directly investor-relevant of the major sustainability standards. Under the ISSB architecture, the SASB Standards are incorporated as the industry-based guidance for applying IFRS S2, making them effectively mandatory for companies using IFRS S2 to consider sector-specific climate disclosures.
SASB's Five Dimensions of Sustainability
GHG emissions, air quality, energy management, water management, waste and hazardous materials, ecological impacts.
Human rights, customer welfare, data security, access and affordability, fair disclosure and labeling, fair marketing.
Labor practices, employee health and safety, employee engagement, diversity and inclusion, compensation and benefits.
Product design and lifecycle management, business model resilience, supply chain management, materials sourcing and efficiency, physical impacts of climate change.
Business ethics, competitive behavior, management of the legal and regulatory environment, critical incident risk management, systemic risk management.
ESRS / CSRD — European Sustainability Reporting Standards
The European Sustainability Reporting Standards (ESRS) are developed by EFRAG (European Financial Reporting Advisory Group) under mandate from the European Commission as the mandatory disclosure standards required by the Corporate Sustainability Reporting Directive (CSRD). They represent the most comprehensive and detailed sustainability disclosure requirements in the world.
The ESRS Architecture
ESRS 1 — General Requirements (reporting principles, structure, double materiality methodology)
ESRS 2 — General Disclosures (governance, strategy, impact/risk/opportunity management, metrics)
ESRS E1 — Climate Change (GHG, transition plan, scenario analysis)
ESRS E2 — Pollution
ESRS E3 — Water and Marine Resources
ESRS E4 — Biodiversity and Ecosystems
ESRS E5 — Resource Use and Circular Economy
ESRS S1 — Own Workforce
ESRS S2 — Workers in the Value Chain
ESRS S3 — Affected Communities
ESRS S4 — Consumers and End-users
ESRS G1 — Business Conduct (anti-corruption, lobbying, political engagement, supplier relationships, payment practices)
The Omnibus I Update — March 2026
The CSRD was significantly revised by the EU Omnibus I package, which entered into force on March 18, 2026. Key changes affecting non-EU companies include:
- Non-EU parent threshold raised: >€450M EU net turnover + EU subsidiary >€200M (up from €150M and €40M respectively)
- Two-year delay for Wave 2 companies — now report for FY2027 (not FY2025)
- Non-EU companies now report for FY2028, with first reports due 2029
- Listed SMEs fully exempt from mandatory reporting
- Double materiality assessment remains mandatory — this was not simplified
Double Materiality — ESRS's Defining Feature
Unlike ISSB (which uses single financial materiality), ESRS requires double materiality — companies must assess and disclose sustainability issues from two simultaneous lenses: how ESG issues affect the company's financial performance (financial materiality / "outside-in"), and how the company's activities impact the environment and society (impact materiality / "inside-out"). Both perspectives must be assessed through stakeholder engagement and documented with a methodology that assurance providers can verify.
GHG Protocol — The Universal Emissions Accounting Standard
The GHG Protocol, developed by the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD), is not a reporting standard in the traditional sense — it is the universal accounting and measurement methodology for greenhouse gas emissions that underpins every other climate disclosure standard in existence. If ISSB S2, ESRS E1, CSSB CSDS 2, CDP, and GRI 305 all require GHG emissions disclosure, they all require data calculated using GHG Protocol methods.
The foundational accounting standard for Scope 1 (direct) and Scope 2 (purchased energy) emissions. Defines organizational boundary approaches (equity share, financial control, operational control) and the Scope 1/2/3 framework itself.
Clarifies how to account for purchased electricity using both location-based (average grid emission factor) and market-based (contractual instruments — RECs, PPAs) methods. Both are now required by ESRS E1 and ISSB S2.
Defines all 15 Scope 3 categories of indirect emissions upstream and downstream of a company's operations. The most complex part of any GHG inventory — typically representing 70–90% of a company's total footprint.
The GHG Protocol is currently updating the Corporate Standard (first update since 2004), with revised guidance on topics including Scope 2 accounting, biogenic carbon, and the treatment of value chain boundaries. Updates are expected by 2026–2027 and will affect how companies calculate and report emissions across all major frameworks.
CDP — Carbon Disclosure Project
CDP (formerly the Carbon Disclosure Project) is neither a pure framework nor a traditional standard — it is the world's largest environmental disclosure platform and rating system, used by investors, companies, cities, states, and regions to manage environmental impacts. Over 23,000 companies disclosed through CDP in 2024, representing over 60% of global market capitalization.
CDP runs annual disclosure questionnaires across three environmental categories: Climate Change, Water Security, and Forests. Companies receive a score from A (leadership) to D– (non-disclosure), which is used by MSCI ESG ratings, S&P CSA, Sustainalytics, and institutional investors worldwide as a primary data source for ESG analysis.
CDP and the Major Standards
CDP questionnaires are closely aligned with GRI, TCFD/ISSB S2, and ESRS — meaning that a company with strong CDP disclosures is well-positioned for multiple regulatory filings simultaneously. CDP and GRI have a formal collaboration agreement, and CDP's supply chain program is the most widely used mechanism for collecting Scope 3 Category 1 supplier emissions data.
PART THREE — COUNTRY-SPECIFIC STANDARDS
Canada — CSSB / CSDS
Issued: December 2024 · Status: Voluntary, pending CSA mandatory adoption · Aligned with: IFRS S1 & S2 (ISSB) with Canadian modifications
The Canadian Sustainability Standards Board released two standards in December 2024: CSDS 1 (general sustainability disclosure requirements, aligned with IFRS S1) and CSDS 2 (climate-related disclosures, aligned with IFRS S2). Both incorporate TCFD's four-pillar structure and require Scope 1, 2, and 3 GHG disclosures.
Currently voluntary pending action by the Canadian Securities Administrators (CSA) to mandate for public companies. Proportionality relief provisions for smaller reporting issuers. Methodologically compatible with SBTi targets and CDP disclosures. The CSSB has introduced a 3-year transition relief for Scope 3 disclosures — companies can omit Scope 3 in their first year of reporting.
Currently Voluntary · CSA mandate expectedIn force: May 2024 · Status: Mandatory · Applies to: Large Canadian companies and federal government institutions
Canada's supply chain human rights legislation requires large Canadian companies (meeting size thresholds) to submit an annual report to the Minister of Public Safety describing the steps taken to prevent and reduce forced labour and child labour in their supply chains. Filed annually by May 31. The building blocks it creates — supplier mapping, due diligence processes, and supply chain transparency — directly support ESRS S2 and Scope 3 disclosure programs.
Mandatory · Annual filing with MinisterIndia — BRSR & BRSR Core
Introduced: May 2021 · BRSR Core: July 2023 · Status: Mandatory for top 1,000 listed companies · Regulator: Securities and Exchange Board of India (SEBI)
India's BRSR is one of the most detailed mandatory ESG disclosure regimes in the Global South. SEBI mandates the top 1,000 listed entities by market capitalization to prepare and file BRSR reports alongside their annual reports. The framework is structured around the nine principles of India's National Guidelines on Responsible Business Conduct (NGRBC), covering environment, social, governance, consumer protection, and sustainable business practices.
BRSR Core — The Assurance-Required KPIs
In July 2023, SEBI introduced the BRSR Core — a subset of approximately 30 Key Performance Indicators (KPIs) that must undergo third-party assurance (reasonable assurance standard), elevating Indian ESG reporting from self-declared disclosures to audited, verified data. The BRSR Core covers:
- Scope 1 and Scope 2 GHG emissions and emission intensity
- Energy consumption intensity (GJ per unit of production or FTE)
- Water withdrawal and discharge intensity
- Waste generated and diverted from disposal
- Gender diversity in workforce and leadership (board, senior management)
- Median remuneration ratios (gender pay gap, executive vs. median worker pay)
- Occupational health and safety incidents (LTIFR, fatalities)
- Training hours per employee and spending on skilling
Latest BRSR Updates (2024–2026)
SEBI issued detailed Industry Standards developed by the Industry Standards Forum (comprising ASSOCHAM, FICCI, and CII) to standardize BRSR Core disclosures and address implementation nuances. Applicable from FY 2024–25.
SEBI's circular eased value chain ESG disclosure requirements — changing from "comply-or-explain" to fully voluntary, giving companies more time to build supplier data systems. Mandatory value chain reporting now expected from FY 2026–27.
Full BRSR Core mandatory reporting continues for top 1,000 companies. Assurance requirements phase in progressively: top 150 (FY 2023–24), top 250 (FY 2024–25), top 500 (FY 2025–26), top 1,000 (FY 2026–27).
Australia — ASRS (Australian Sustainability Reporting Standards)
Effective: 1 January 2025 (Group 1) · Regulator: Australian Accounting Standards Board (AASB) · Aligned with: IFRS S1 & S2 with Australian modifications
Mandatory — phased by company sizeAustralia moved decisively on ISSB adoption through the Treasury Laws Amendment (Financial Market Infrastructure and Other Measures) Act 2024. The Australian Sustainability Reporting Standards (AASB S1 and AASB S2) closely mirror the ISSB standards with Australian-specific modifications. The phased rollout by company size:
- Group 1 (revenue >AUD 500M, assets >AUD 1B, or 500+ employees) — mandatory from FY starting 1 January 2025
- Group 2 (revenue >AUD 200M, assets >AUD 500M, or 250+ employees) — mandatory from July 2026
- Group 3 (revenue >AUD 50M, assets >AUD 25M, or 100+ employees) — mandatory from July 2027
United Kingdom — UK Sustainability Reporting Standards
Endorsed by: Financial Conduct Authority (FCA) and Department for Business and Trade · Phased rollout: Largest listed companies from FY beginning 2025 · Aligned with: IFRS S1 & S2 with limited UK modifications
Mandatory for large listed companies · Phasing inThe UK has emerged as one of the most decisive ISSB adopters among major economies. The UK SRS are closely aligned with IFRS S1 and S2 with targeted UK-specific modifications. The FCA and Department for Business and Trade have confirmed a phased rollout starting with the largest listed companies and public interest entities for fiscal years beginning 2025, expanding in subsequent years. For multinationals with UK-listed entities, ISSB-aligned reporting is now a legal requirement, not a voluntary exercise.
Japan — SSBJ (Sustainability Standards Board of Japan)
Standards finalized: March 2025 · Mandatory from: April 2026 (Prime Market companies, >JPY 3 trillion market cap) · Aligned with: IFRS S1 & S2 with Japan-specific modifications
Mandatory for large Prime Market companies from April 2026Japan's approach to sustainability reporting has crystallized around the SSBJ, which finalized disclosure standards in March 2025 closely aligned with ISSB. The Financial Services Agency (FSA) has confirmed SSBJ-aligned disclosures will be required within annual securities reports (yuho) — under the same legal framework as financial statements. The scope expands progressively: companies above JPY 3 trillion from April 2026; above JPY 1 trillion from April 2027.
Singapore — SGX Sustainability Reporting
Regulator: Singapore Exchange (SGX) · Scope 1 & 2: Mandatory for listed companies from 2025 · Scope 3: Required by 2027 · Assurance: From 2027 (listed) / 2029 (large non-listed)
Mandatory — phased requirementsSingapore is aligning its sustainability reporting requirements with ISSB standards through the SGX sustainability reporting framework. Listed companies must disclose Scope 1 and 2 GHG emissions from 2025, with Scope 3 required by 2027. Climate-related disclosures under the ISSB framework are being phased in for both listed and large non-listed companies.
Other Country Standards — Global Snapshot
ISSB-aligned mandatory reporting for listed companies on the B3 Stock Exchange. Expected mandatory from FY2026. Securities regulator CVM leading adoption aligned with IFRS S1 & S2.
In progress — 2026Mandatory TCFD-aligned climate reporting for large listed companies and financial institutions. One of the earliest adopters globally — mandatory since 2022. Now aligning with ISSB S2.
Mandatory since 2022JSE-listed companies must produce integrated reports aligned with the IIRC Integrated Reporting Framework and the King IV governance code. South Africa is a global leader in integrated reporting adoption.
Mandatory for JSE-listedHong Kong has embraced the ISSB framework through HKEX. Mandatory GHG emissions disclosures for listed companies from 2025. Full ISSB adoption for large entities by 2028.
Phased — mandatory from 2025China is developing mandatory ESG standards for listed companies. CSRC draft (capital markets) and SSE ESG Disclosure Standard (Shanghai Stock Exchange) both aligned with ISSB and TCFD. Mandatory application planned from 2025 for large companies.
Rolling out 2025–2026US federal SEC climate disclosure rules were rescinded in 2025. California's SB 253 (GHG disclosures) and SB 261 (climate financial risk) remain in force for large companies doing business in California. State-level requirements continue to apply independently.
California — mandatory; Federal — rescinded27 EU member states are transposing the CSRD into national law. France was the first to transpose (December 2023). All member states must apply ESRS standards — national variations are permitted only at the margin.
Mandatory — ESRS appliesTesting ISSB-aligned disclosure standard since 2024 based on IFRS S1 & S2. Mandatory application not yet officially scheduled, but initial pilot reports are underway. One of the most advanced ISSB adoption efforts in Sub-Saharan Africa.
Pilot phase — 2024–2025PART FOUR — SECTOR-SPECIFIC STANDARDS
Beyond universal ESG frameworks and country mandates, many industries have developed their own sector-specific sustainability standards — tailored to the unique ESG hotspots, supply chain structures, and stakeholder expectations of particular industries. These are not substitutes for GRI, ISSB, or ESRS, but rather complementary tools that address what generic standards cannot.
Steel — ResponsibleSteel International Production Standard
Established: 2019 (V1.0) · Current version: V2.1.1 (October 2024) · Scope: Steel production sites globally · Type: Third-party certification standard · Certifying organizations: 43+ certified sites as of December 2025
Voluntary Certification · Industry Gold StandardResponsibleSteel is the steel industry's globally recognized sustainability standard and certification system, developed over seven years with multi-stakeholder input. Version 2.1.1 (launched October 2024) includes revised requirements for GHG emissions accounting and sourcing of input materials — specifically designed to drive down emissions and drive up environmental standards in the steel supply chain.
The 13 Principles of ResponsibleSteel
1. Corporate leadership & commitment
2. Stakeholder engagement
3. Business integrity
4. Labour rights
5. Health, safety & emergency preparedness
6. Human rights
7. Community
8. Downstream chain of custody
9. Greenhouse gases & climate change
10. Water stewardship
11. Biodiversity & land management
12. Waste management
13. Environmental management & reporting
ResponsibleSteel certification requires third-party auditing against all 13 principles (400+ requirements), with sites committing to Paris Agreement-aligned, site-level GHG targets. As of 2025, certified sites account for approximately 7.3% of global steel sector CO₂e emissions. The standard is interoperable with ISSB, CSRD, and GRI through a LEO platform data-sharing architecture with global banks.
Jewellery & Watches — Responsible Jewellery Council (RJC)
Established: 2005 · Current standard: COP 24 (effective 1 January 2025) · Members: 2,000+ companies globally · Supply chain coverage: Mine to retail — gold, silver, platinum group metals (PGMs), diamonds, gemstones
Voluntary Certification · 2,000+ member companiesThe Responsible Jewellery Council is the world's leading sustainability standard-setting and certification organization for the jewellery and watch industry. Its Code of Practices (COP) is the mandatory certification standard for all commercial RJC members, requiring independent third-party auditing by RJC-accredited auditors.
COP 24 — The 2024 Update
Approved in November 2024 and effective from 1 January 2025, COP 24 is the most comprehensive revision since COP 19 in 2019. It now includes 45 provisions across six core objectives:
- Legal compliance — adherence to applicable laws and regulations in all jurisdictions of operation
- Health & safety — comprehensive occupational health and safety management systems
- Human rights & supply chain diligence — OECD Due Diligence Guidance alignment, conflict minerals, forced labour
- Product integrity — accurate description, provenance, and quality assurance for materials
- Labour & working conditions — fair wages, working hours, freedom of association, non-discrimination
- Responsible mining & environment — GHG emissions (COP 27 — mandatory reduction commitment), biodiversity, water, waste
RJC's Three Standards
The foundational certification covering human rights, labour, health & safety, environmental performance, and business ethics. Mandatory for all commercial RJC members within 2 years of joining.
Defines traceable and responsibly sourced handling of gold, silver, platinum group metals. Required for companies making chain of custody claims about their materials.
New standard effective 1 May 2025 covering ethical, social, human rights, and environmental practices for companies handling laboratory-grown diamonds and other materials.
Hospitality & Foodservice — SRA Food Made Good Standard
Established: 2008 (SRA) · Current standard: Food Made Good Standard (relaunched June 2023) · Global reach: Available in Hong Kong, Italy, Japan, Taiwan, Singapore, UAE, and expanding · Languages: English, Spanish, Japanese, Traditional Chinese
Voluntary Certification · Hospitality SectorThe Sustainable Restaurant Association (SRA) launched the Food Made Good Standard — the world's only 360-degree sustainability assessment specifically designed for the foodservice and hospitality industry. Unlike generic ESG frameworks that require significant adaptation for the restaurant context, Food Made Good is built around the specific sustainability hotspots of the food and beverage sector.
The standard covers three interconnected pillars that reflect the unique ESG profile of hospitality operations:
Where food comes from — sustainable and ethical sourcing, animal welfare, seasonal and local produce, reducing food miles, responsible seafood, fair supply chain practices.
Community and people — worker rights and fair wages, community engagement, inclusion and diversity, food waste donation, social enterprise support, customer health and transparency.
Planet and operations — food waste reduction, energy efficiency and renewables, water management, packaging and plastics reduction, carbon footprint, circular economy principles.
The Food Made Good Standard is backed by a comprehensive scoring system and enables foodservice businesses — from single-site restaurants to global chains — to benchmark their sustainability performance, identify improvement areas, and communicate their commitment to customers. The SRA's 2026–27 global report, Hospitality Rising: Global Challenges, Local Solutions, highlights the growing adoption of sustainability metrics in the hospitality sector worldwide.
Finance Sector — PCAF, GFANZ & WEF Metrics
The financial sector faces unique ESG reporting requirements because the most significant sustainability impact of banks, insurers, and asset managers lies not in their own operations, but in the companies and projects they finance. Three sector-specific frameworks are essential for financial institutions:
The PCAF Standard provides the methodology for measuring and disclosing financed emissions (Scope 3 Category 15) — the GHG emissions associated with loans, investments, and insurance. It covers six asset classes: listed equity & corporate bonds, business loans & unlisted equity, project finance, commercial real estate, mortgages, and motor vehicle loans. Each disclosure comes with a data quality score (1–5). PCAF is required for alignment with GFANZ (Net-Zero Banking Alliance, Net-Zero Asset Managers Initiative, Net-Zero Insurance Alliance).
GFANZ is an umbrella alliance comprising the Net-Zero Banking Alliance (NZBA), Net-Zero Asset Managers Initiative (NZAMI), Net-Zero Insurance Alliance (NZIA), and Net-Zero Asset Owner Alliance (NZAOA). Member institutions commit to transitioning their portfolios to net-zero GHG emissions by 2050, with interim 2030 targets. GFANZ members must apply PCAF for financed emissions measurement and disclose transition plans aligned with 1.5°C pathways.
Financial institutions reporting under WEF Stakeholder Capitalism Metrics apply the same 21 core and 34 expanded metrics as other sectors, but with specific application guidance for the financial sector context — including reporting on financed emissions, ESG integration in investment processes, and alignment of assets under management with climate targets. KPMG, LSEG, and major global banks report against WEF SCM metrics annually.
In Canada, the Office of the Superintendent of Financial Institutions (OSFI) has issued climate risk guidance (Guideline B-15, effective fiscal years ending October 2024+) requiring federally regulated financial institutions to disclose climate-related risks aligned with the TCFD framework. Canadian banks, insurers, and pension funds must disclose governance, strategy, risk management, and metrics for climate risk — making TCFD-aligned disclosure effectively mandatory in Canada's financial sector.
Other Key Sector-Specific Standards
A comprehensive third-party assurance standard for mining operations covering environmental management, community relations, worker rights, and business integrity. IRMA Standard for Responsible Mining covers 100+ criteria across four themes: business integrity, planning for positive legacies, responsible production, and corporate governance. Increasingly aligned with ResponsibleSteel for steel supply chain due diligence.
The MSC Standard for sustainable wild-capture fisheries and the ASC Standard for responsible aquaculture are the globally recognized certification systems for seafood. Both are increasingly integrated into GRI Sector Standards for Agriculture, Aquaculture and Fishing (GRI 13, effective 2024) and relevant for ESRS E4 biodiversity disclosures.
FSC and PEFC are the globally recognized forest certification systems for responsible forest management and chain of custody. Required for companies making sustainable sourcing claims on timber, paper, and wood-based products. Both are explicitly referenced in ESRS E4 (biodiversity) and GRI 304 (biodiversity) as relevant sector standards for forest-exposed value chains.
The GSTC Criteria are the global baseline standard for sustainability in travel and tourism — covering sustainable management, socioeconomic impacts, cultural heritage, and environmental impacts. GSTC-recognized standards include those developed by Rainforest Alliance, Travelife, Green Key, and others. Applicable to hotels, tour operators, and destinations.
The Higg Index (developed by the Sustainable Apparel Coalition) provides standardized tools for measuring environmental and social sustainability across the apparel and footwear value chain. The Zero Discharge of Hazardous Chemicals (ZDHC) programme sets chemical compliance standards for textile wet processing. Both are widely used by major fashion brands for supply chain sustainability assessments.
The SASB Automobiles Standard provides industry-specific sustainability metrics for automakers covering fuel economy, GHG emissions, product safety, and supply chain management. The SBTi Automotive Net-Zero Standard (in consultation as of February 2026) will provide science-based target guidance specific to the vehicle manufacturing sector, including Scope 3 Category 11 (use of sold vehicles).
Global Framework & Standard Comparison
| Standard / Framework | Type | Materiality | Voluntary / Mandatory | Primary Audience | Assurance? |
|---|---|---|---|---|---|
| TCFD | Framework | Financial | Integrated into ISSB S2, ESRS E1 | Investors, financiers | Not required |
| TNFD | Framework | Nature / Impact | Voluntary (regulatory momentum building) | Investors, regulators | Not required |
| Integrated Reporting | Framework | Multi-capital | Voluntary (mandatory JSE/South Africa) | Long-term investors | Not required |
| WEF SCM | Framework | Multi-stakeholder | Voluntary | All stakeholders | Not required |
| UN Global Compact | Framework | Principles-based | Voluntary commitment | Society, stakeholders | Not required |
| GRI | Standard | Impact materiality | Voluntary globally; referenced in CSRD | All stakeholders | Recommended |
| ISSB IFRS S1 | Standard | Financial | Mandatory in 30+ jurisdictions | Investors | Required (varies) |
| ISSB IFRS S2 | Standard | Financial (climate) | Mandatory in 30+ jurisdictions | Investors | Required (varies) |
| SASB (77 sectors) | Standard | Financial | Voluntary; required for ISSB S2 consideration | Investors | Not required |
| ESRS / CSRD | Standard | Double materiality | Mandatory in EU; extraterritorial reach | All stakeholders | Limited assurance required |
| GHG Protocol | Accounting std. | Emissions-specific | Foundational — all frameworks require it | All stakeholders | Recommended |
| CDP | Platform/Rating | Environmental | Voluntary; investor-requested | Investors, supply chains | Optional |
| CSSB CSDS (Canada) | Standard | Financial | Voluntary — CSA mandate pending | Investors | Expected |
| BRSR (India) | Standard | Financial + Impact | Mandatory — top 1,000 listed (SEBI) | Investors, regulators | Required (BRSR Core) |
| ASRS (Australia) | Standard | Financial | Mandatory — phased from Jan 2025 | Investors | Required |
| UK SRS | Standard | Financial | Mandatory — largest listed from FY2025 | Investors | Required |
| SSBJ (Japan) | Standard | Financial | Mandatory — Prime Market from April 2026 | Investors | Required |
| ResponsibleSteel | Certification | ESG (sector) | Voluntary certification | Buyers, investors | Third-party audit |
| RJC COP | Certification | ESG (sector) | Voluntary certification | Buyers, consumers | Third-party audit |
| SRA Food Made Good | Assessment | ESG (sector) | Voluntary assessment | Consumers, operators | Not required |
| PCAF | Standard | Climate (financed) | Required for GFANZ members | Financial sector | Recommended |
Which Framework or Standard Should You Use?
The right answer depends on your regulatory obligations, investor base, supply chain relationships, industry, and strategic goals. In practice, most companies use multiple frameworks simultaneously — the question is how to sequence and prioritize them efficiently.
If you are a Canadian public company
Start with CSSB CSDS 1 & 2 (aligned with ISSB S1 & S2) as your primary reporting standard, supplemented by CDP for investor engagement and GRI for stakeholder-facing reporting. If you supply EU customers, layer in ESRS E1 climate disclosure readiness. Ensure S-211 forced labour compliance. Consider SBTi for validated climate targets.
If you supply EU-regulated companies
Prioritize building ESRS-aligned data — particularly ESRS E1 (climate) and ESRS S2 (value chain workers) — because your customers will request this data for their own disclosures. Map your Scope 3 inventory using the GHG Protocol and consider PACT framework product carbon footprint (PCF) data exchange to enable digital data sharing with EU customers.
If you operate in the steel sector
Pursue ResponsibleSteel certification as your primary sector standard — it is increasingly required by EU steel buyers under their own CSRD value chain due diligence. Align your GHG accounting with the GHG Protocol and ISSB S2, and use the LEO platform for data sharing with banks and buyers.
If you operate in jewellery or watches
Pursue RJC COP 24 certification — now the baseline expectation for any company in the watch and jewellery supply chain dealing with B2B buyers, luxury retailers, and institutional customers. Complement with GRI Standards for public sustainability reporting and OECD Due Diligence Guidance for supply chain human rights.
If you are an Indian listed company
Comply with BRSR and BRSR Core (mandatory for top 1,000 listed companies). Supplement with CDP for international investor engagement. If you have EU customer relationships, begin building ESRS-aligned climate data for value chain disclosure requests. GRI provides a useful complement for broader impact disclosure.
If you are a financial institution
Apply PCAF Standard for financed emissions (Scope 3 Category 15). If pursuing net-zero commitments, align with GFANZ frameworks (NZBA/NZAMI/NZAOA). Disclose against TCFD / ISSB S2 for investor requirements. In Canada, comply with OSFI Guideline B-15. Use WEF Stakeholder Capitalism Metrics for broad stakeholder reporting.
The Convergence Trend: Where Is This All Heading?
The single most important structural shift in the ESG reporting landscape over the past five years is convergence — the progressive merging of previously fragmented voluntary frameworks into a smaller number of comprehensive, interoperable, and increasingly mandatory standards.
The proliferation of voluntary frameworks was dramatically simplified as the IFRS Foundation absorbed multiple predecessor organizations, creating a single institutional home for global baseline sustainability disclosure standards.
The publication of S1 and S2 created the first genuine global baseline. TCFD disbanded, transferring monitoring to the IFRS Foundation. Over 30 jurisdictions immediately began adoption processes.
Major economies outside the EU moved rapidly to mandate ISSB-aligned reporting, creating a genuinely global mandatory regime for large listed companies across Asia-Pacific, Europe, and beyond.
With ESRS (EU) and ISSB (global) both mandatory in their respective jurisdictions, formal interoperability mappings now allow companies to produce disclosures that satisfy both standards simultaneously, reducing the dual-reporting burden.
TNFD-aligned nature disclosure, ESRS sector-specific standards (expected 2028), GRI sector standard expansion (38+ new sectors), and ISSB's work program on social standards (S3 and S4) will fill the remaining gaps in the global ESG disclosure ecosystem.