ESG STANDARD VS ESG FRAMEWORK

These terms are not interchangeable but do go hand-in-hand with each other . The idea of an ESG framework is to provide guidance on some of the directions that reporting efforts can take . Frameworks are supplementary to the ESG standard , which provides the specific methodology for gathering data and formalising it in a report . Each is more successful with the other , but standards will drive the initial action to being defining what sustainability means to the business .

Strategic approach to ethical investment It ’ s important to understand the reasons for accreditation and build a roadmap based on what financial institutions are looking for , but also choose a means of certification that will serve the business beyond the confines of the financial agenda .

Organisations like BlackRock and Vanguard have gone public about their efforts to direct investments towards ESGcompliant businesses that uphold specific sustainability standards . Both of these organisations expressed their requirements for SASB and TCFD as benchmarks of sustainable investment opportunities .

68 November 2023