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 – What are the different types of reporting standards for sustainability?

Sustainability reporting is the process of collecting and reporting information about a company’s economic, environmental, and social performance. This information can be used by investors, customers, employees, and other stakeholders to make informed decisions about the company.

There are a number of different reporting standards that companies can use to report on their sustainability performance. The most widely used standards are the Global Reporting Initiative (GRI) Standards, the Sustainability Accounting Standards Board (SASB) Standards, and ISO 26000.

In this article, we will discuss the different types of reporting standards for sustainability, as well as the benefits of sustainability reporting. We will also provide some tips for companies that are looking to start sustainability reporting.

GRI Standards: The Global Reporting Initiative (GRI) Standards are the most widely used sustainability reporting standards in the world. They provide a framework for companies to report on their economic, environmental, and social performance. The GRI Standards are divided into four levels: Core, Comprehensive, Extended, and Sector Supplements. The Core Level is the most basic level and is required for all companies that report using the GRI Standards. The Comprehensive Level is more comprehensive and includes additional indicators. The Extended Level is even more comprehensive and includes indicators that are specific to certain industries or regions. The Sector Supplements are designed for specific industries, such as the financial services industry or the mining industry.

SASB Standards: The Sustainability Accounting Standards Board (SASB) Standards are a set of industry-specific sustainability reporting standards. They are designed to help companies report on the sustainability impacts that are most relevant to their industry. The SASB Standards are still under development, but they are gaining popularity among companies in the United States.

ISO 26000: ISO 26000 is an international standard for social responsibility. It provides guidance on how organizations can manage their social responsibility impacts. ISO 26000 is not a reporting standard, but it can be used to inform sustainability reporting.

CDP: Carbon Disclosure Project: CDP is a non-profit organization that collects climate change data from companies around the world. CDP’s climate change reporting framework is used by over 9,000 companies to report on their greenhouse gas emissions and climate change risks.

TCFD: Task Force on Climate-related Financial Disclosures: The Task Force on Climate-related Financial Disclosures (TCFD) is an international organization that develops recommendations for companies on how to disclose climate-related risks and opportunities. The TCFD recommendations are not a reporting standard, but they are widely used by companies to inform their sustainability reporting.

These are just a few of the different types of reporting standards for sustainability. The best standard for a company to use will depend on its size, industry, and geographic location. It is important to choose a standard that is appropriate for the company’s specific needs and objectives.

In addition to the standards mentioned above, there are a number of other sustainability reporting standards that are gaining popularity. These include the following:

IIRC: International Integrated Reporting Council: The International Integrated Reporting Council (IIRC) is developing a new reporting standard that integrates financial, environmental, social, and governance (ESG) information. The IIRC’s reporting framework is expected to be released in 2023.

SDG Compass: The SDG Compass is a sustainability reporting framework that is aligned with the United Nations Sustainable Development Goals (SDGs). The SDG Compass is designed to help companies report on their progress towards the SDGs.

GRI Sustainability Reporting Guidelines: The GRI Sustainability Reporting Guidelines are a set of guidelines that are used to implement the GRI Standards. The GRI Guidelines provide additional guidance on how to collect data and report on sustainability performance.

The sustainability reporting landscape is constantly evolving. It is important to stay up-to-date on the latest developments in sustainability reporting so that companies can choose the best standard for their needs.

 – Who are the people or companies that is mandatory to report

In Singapore, the mandatory reporting of sustainability information is relatively new. In 2018, the Singapore Exchange (SGX) announced that it would require all of its listed companies to report on their sustainability performance starting from 2020. The SGX’s sustainability reporting requirements are based on the Global Reporting Initiative (GRI) Standards.

The following are some of the people or companies that are mandatory to report sustainability information in Singapore:

Companies that are listed on the Singapore Exchange (SGX): All companies that are listed on the SGX are required to report on their sustainability performance starting from 2020.

Companies that are seeking financing from the Singapore government: The Singapore government has a number of sustainability lending and investing programs. Companies that are seeking financing from these programs are required to report on their sustainability performance.

Companies that are members of certain industry associations: Some industry associations in Singapore have their own sustainability reporting requirements. For example, the Singapore Business Federation requires all of its members to report on their sustainability performance.

It is important to note that the mandatory reporting of sustainability information in Singapore is still evolving. It is important to stay up-to-date on the latest developments in mandatory sustainability reporting so that companies can comply with the relevant requirements.

In addition to the people and companies mentioned above, there are a number of other organizations in Singapore that are voluntarily reporting on their sustainability performance. 

These organizations include non-profit organizations, government agencies, and universities. Voluntary sustainability reporting can be a valuable way for organizations to demonstrate their commitment to sustainability and to communicate their sustainability performance to stakeholders.

The benefits of sustainability reporting in Singapore include:

• Improved decision-making: Sustainability reporting can help organizations to make better decisions about their environmental, social, and governance performance by providing them with data and insights into their impact on these areas. This information can be used to identify areas where the organization can improve its performance, set goals, and track progress. For example, a company that reports on its greenhouse gas emissions can use this information to identify ways to reduce its emissions and improve its environmental performance.

• Increased transparency: Sustainability reporting can help to increase transparency and accountability for organizations by making public their environmental, social, and governance performance. This can help to build trust with stakeholders, such as customers, employees, investors, and regulators. For example, a company that reports on its diversity and inclusion initiatives can help to demonstrate its commitment to creating a workplace that is inclusive and welcoming to all employees.

• Improved reputation: Sustainability reporting can help to improve an organization’s reputation with stakeholders by demonstrating its commitment to sustainability. This can lead to increased customer loyalty, employee engagement, and investor interest. For example, a company that reports on its water use can help to demonstrate its commitment to conserving water and protecting the environment.

• Attraction of investment: Sustainability reporting can help to attract investment from socially responsible investors, who are increasingly looking to invest in companies that are committed to sustainability. This can lead to increased access to capital and lower financing costs. For example, a company that reports on its efforts to reduce its environmental impact can help to attract investment from investors who are looking to support companies that are taking action on climate change.

• Access to capital: Sustainability reporting can help organizations to access capital from financial institutions that are committed to sustainability. These institutions are more likely to lend or invest in companies that have a strong sustainability track record. For example, a company that reports on its efforts to improve its workplace safety can help to demonstrate its commitment to employee well-being and attract investment from financial institutions that are committed to social responsibility.

• Compliance with regulations: Sustainability reporting can help organizations to comply with regulations that require them to report on their sustainability performance. This can help to avoid fines and penalties and protect the organization from legal liability. For example, a company that reports on its compliance with environmental regulations can help to demonstrate that it is in compliance with the law and avoid fines and penalties.

In addition to the benefits listed above, sustainability reporting can also help organizations to:

• Identify and manage risks: Sustainability reporting can help organizations to identify and manage risks related to their environmental, social, and governance performance. This can help to protect the organization from financial losses and reputational damage.

• Gain a competitive advantage: Sustainability reporting can help organizations to gain a competitive advantage by demonstrating their commitment to sustainability to customers, employees, investors, and other stakeholders. This can lead to increased sales, market share, and profits.

• Be more innovative: Sustainability reporting can help organizations to be more innovative by identifying new ways to improve their environmental, social, and governance performance. This can lead to new products, services, and business models that can help the organization to grow and succeed.

Overall, sustainability reporting can be a valuable tool for organizations in Singapore that are committed to sustainability. By reporting on their environmental, social, and governance performance, organizations can reap a number of benefits, including improved decision-making, increased transparency, improved reputation, attraction of investment, access to capital, compliance with regulations, risk identification and management, competitive advantage, and innovation.

 – Focus on GRI/TCFD

Sustainability reporting is the process of collecting and reporting information about an organization’s environmental, social, and governance (ESG) performance. This information can be used by investors, customers, employees, and other stakeholders to make informed decisions about the organization.

There are a number of different reporting frameworks that organizations can use to report on their sustainability performance. The two most widely used frameworks are the Global Reporting Initiative (GRI) Standards and the Task Force on Climate-related Financial Disclosures (TCFD).

The GRI Standards are a set of guidelines for sustainability reporting that are used by organizations around the world. The GRI Standards cover a wide range of ESG topics, including environmental performance, social performance, and governance performance.

The TCFD is a set of recommendations for climate-related financial disclosures that are used by organizations around the world. The TCFD recommendations focus on helping organizations to identify and manage climate-related risks and opportunities.

Both the GRI Standards and the TCFD are valuable frameworks for sustainability reporting. However, they have different strengths and weaknesses.

The GRI Standards are more comprehensive than the TCFD. The GRI Standards cover a wider range of ESG topics, and they provide more detailed guidance on how to report on these topics. However, the GRI Standards can be more complex and time-consuming to use than the TCFD.

The TCFD is more focused on climate-related risks and opportunities than the GRI Standards. The TCFD recommendations are specifically designed to help organizations to identify and manage climate-related risks and opportunities. However, the TCFD does not cover other ESG topics, such as environmental performance or social performance.

The benefits of using both the GRI Standards and the TCFD for sustainability reporting include:

• Increased transparency: By using both frameworks, organizations can provide a more comprehensive and transparent picture of their ESG performance. This can help to build trust with stakeholders and improve the organization’s reputation.

• Improved decision-making: By using both frameworks, organizations can gain a better understanding of their ESG risks and opportunities. This information can be used to make better decisions about the organization’s strategy, operations, and investments.

• Attraction of investment: By using both frameworks, organizations can demonstrate their commitment to sustainability to investors. This can lead to increased investment and access to capital.

• Compliance with regulations: By using both frameworks, organizations can comply with regulations that require them to report on their ESG performance. This can help to avoid fines and penalties.

• Overall, using both the GRI Standards and the TCFD for sustainability reporting can be a valuable way for organizations to improve their ESG performance and reap a number of benefits.

Here are some additional tips for organizations that are considering using both frameworks for sustainability reporting:

• Start with the GRI Standards: The GRI Standards are a good starting point for organizations that are new to sustainability reporting. The GRI Standards cover a wide range of ESG topics, and they provide more detailed guidance on how to report on these topics.

• Add the TCFD recommendations: Once the organization is comfortable with the GRI Standards, they can add the TCFD recommendations to their reporting. The TCFD recommendations can help the organization to focus on climate-related risks and opportunities.

• Be transparent about the frameworks used: Organizations should be transparent about the frameworks they are using for sustainability reporting. This will help stakeholders to understand the information that is being reported and how it is being collected.

• Get buy-in from senior management: Sustainability reporting should have the support of senior management in order to be successful. Senior management should be involved in the development and implementation of the organization’s sustainability reporting framework.

• Involve stakeholders: Stakeholders should be involved in the development and implementation of the organization’s sustainability reporting framework. This will help to ensure that the framework is relevant to the organization’s stakeholders and that it meets their needs.

• Review and improve the framework regularly: The organization should review and improve its sustainability reporting framework on a regular basis. This will help to ensure that the framework is up-to-date and that it meets the organization’s changing needs.

By following these tips, organizations can use both the GRI Standards and the TCFD to improve their ESG performance and reap a number of benefits.

 – Interlink because list co are focus to implement this, this would mean that the SMEs will be affected

The increasing focus on GRI/TCFD by large companies is likely to have a number of effects on SMEs.

First, it is likely to put pressure on SMEs to also adopt these frameworks. This is because large companies will be looking to do business with SMEs that are aligned with their sustainability goals. If SMEs do not adopt GRI/TCFD, they may be at a disadvantage when competing for contracts with large companies.

Second, the increasing focus on GRI/TCFD is likely to lead to increased demand for sustainability consulting services from SMEs. SMEs may not have the resources or expertise to implement GRI/TCFD on their own. As a result, they will need to hire consultants to help them do so.

Third, the increasing focus on GRI/TCFD is likely to lead to the development of new sustainability products and services for SMEs. As SMEs become more aware of the importance of sustainability, they will be looking for products and services that can help them improve their sustainability performance. This will create new opportunities for businesses that develop and sell sustainability products and services to SMEs.

It is important for SMEs to be aware of the increasing focus on GRI/TCFD. By understanding these frameworks and the benefits of adopting them, SMEs can position themselves to take advantage of the opportunities that these frameworks create.

Here are some specific tips for SMEs on how to get started with GRI/TCFD:

• Start small: SMEs can start by focusing on one or two key areas of sustainability, such as energy efficiency or waste reduction. This will help them to learn about the frameworks and to develop a sustainable business strategy that is tailored to their specific needs.

• Get help: There are a number of resources available to help SMEs implement GRI/TCFD, including consultants, training programs, and online tools. SMEs should take advantage of these resources to get the support they need to be successful.

• Be transparent: When reporting on their sustainability performance, SMEs should be transparent about the frameworks they are using and the data they are collecting. This will help to build trust with stakeholders and to demonstrate their commitment to sustainability.

• Involve employees: Employees are a valuable resource for SMEs. They can help to identify sustainability risks and opportunities and to implement sustainability initiatives. SMEs should encourage employees to participate in sustainability efforts and to share their ideas.

• Set goals: SMEs should set goals for their sustainability performance. This will help them to track their progress and to identify areas where they need to improve. SMEs should also regularly review their goals and make adjustments as needed.

• Review and improve: SMEs should review and improve their sustainability reporting on a regular basis. This will help to ensure that their reporting is accurate and up-to-date. SMEs should also be open to feedback from stakeholders and make changes to their reporting as needed.

By following these tips, SMEs can get started with GRI/TCFD and reap the benefits of these frameworks.