{"id":63165,"date":"2024-01-10T08:22:44","date_gmt":"2024-01-10T08:22:44","guid":{"rendered":"https:\/\/www.ecoonline.com\/esg-reporting-frameworks-and-standards-understanding-the-difference-2\/"},"modified":"2026-04-13T10:29:08","modified_gmt":"2026-04-13T09:29:08","slug":"esg-reporting-frameworks-and-standards-understanding-the-difference-2","status":"publish","type":"post","link":"https:\/\/www.ecoonline.com\/en-us\/blog\/esg-reporting-frameworks-and-standards-understanding-the-difference\/","title":{"rendered":"ESG Reporting Frameworks and Standards Differences"},"content":{"rendered":"\n
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Updated March 2026<\/em><\/p>\n\n\n\n

You\u2019ve almost certainly heard the term \u2018ESG reporting frameworks and standards\u2019 appear more frequently over the past few years. Environment, Social, and Governance reporting may seem like just another addition to the growing list of nebulous concepts \u2013 alongside sustainability and net zero. But it\u2019s much more than that.<\/p>\n\n\n\n

To have value, ESG reporting must operate in a system of standards and frameworks, providing a criterion that businesses can set themselves against. Unfortunately, this is hampered by a lack of international consensus on what exactly these standards and frameworks are, with over a dozen ESG reporting frameworks each featuring unique metrics and requirements.<\/p>\n\n\n\n

The result? A plethora of acronyms and terms to trawl through, making sure you know your CDSB from your CSRD and your frameworks from your standards. <\/p>\n\n\n\n

In this blog post we are going to tackle the information rich world of ESG reporting, providing you with a list of the best-known frameworks and standards and helping you to understand the difference between the two. <\/p>\n\n\n\n

Let\u2019s get started with a (very) brief look at the history of ESG. <\/p>\n\n\n\n

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A brief background on ESG <\/h2>\n\n\n\n

ESG<\/a> has very concrete roots in the world of capital markets, being used as a way for investors to assess a potential investment. According to Deloitte<\/a>, the \u2018goal\u2019 of ESG is to \u201ccapture all the non-financial risks and opportunities inherent in a company\u2019s day to day activities\u201d.  <\/p>\n\n\n\n

The emphasis on ESG reflects the changing world that we live in. The effects of climate change and changing societal needs influence the decisions investors make on what they require from companies, and what risks they are willing to take. This means more transparency from businesses on their impact in the areas of Environment, Social issues, and Corporate Governance. <\/p>\n\n\n\n

This transparency is particularly crucial for publicly traded companies, as they face increasing scrutiny from investors and regulatory bodies regarding their ESG practices.<\/p>\n\n\n\n

While investors may have been at the center of the ESG concept, relevant stakeholders also include regulators, consumers, and employees, all of whom are looking for more accountability from businesses. <\/p>\n\n\n\n

Part of the issue with ESG reporting (and sustainability reporting as a whole) is the lack of global standardized metrics on what exactly businesses should report on. Coupled with the fact that most ESG reporting<\/a> until very recently has been voluntary, it has led to an uneven reporting landscape.  <\/p>\n\n\n\n

However, this is changing. With the introduction of legislation such as the Corporate Sustainability Reporting Directive<\/a> (CSRD) in the EU, it is now mandatory for a selection of large, public-interest companies to start meeting ESG reporting requirements. Other locations have also introduced mandatory reporting, including the state of California in the USA and the UK.<\/p>\n\n\n\n

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What are ESG Frameworks vs. Standards? <\/h2>\n\n\n\n

The terms \u201cframeworks\u201d and \u201cstandards\u201d tend to be used interchangeably in an ESG reporting context, but there are some significant differences between them.<\/p>\n\n\n\n

ESG frameworks provide guidance and best practices, helping organizations articulate their ESG efforts to investors and other stakeholders.<\/p>\n\n\n\n

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What is a framework?<\/strong><\/h3>\n\n\n\n

According to the SASB<\/a> (Sustainability Accounting Standards Board), frameworks: \u201cprovide principles-based guidance on how information is structured, how it is prepared and what broad topics are covered.\u201d <\/p>\n\n\n\n

ESG reporting frameworks focus on guiding principles and what information is to be collected, with various reporting frameworks offering different approaches and metrics. <\/p>\n\n\n\n

ESG reporting frameworks can be further broken down into mandatory and voluntary or voluntary disclosure frameworks. As the name suggests, mandatory frameworks are implemented on a national or international level through legislation, whereas voluntary frameworks are brought in by businesses themselves to help them report on ESG issues<\/a>. <\/p>\n\n\n\n

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What is a standard? <\/strong><\/h3>\n\n\n\n

According to the SASB<\/a>, standards: \u201cprovide specific, detailed and replicable requirements for what should be reported for each topic, including metrics.\u201d <\/p>\n\n\n\n

Standards provide the specific metrics and indicators for topics that companies must report on. They are used to make sure that disclosures made using a specific framework are \u201cconsistent and can be compared to one another\u201d<\/em><\/a>. A standard will also include the unit of measurement to use when collecting data. <\/p>\n\n\n\n

Standards also help organizations assess financial materiality, ensuring that the reported metrics reflect the financial risks and opportunities relevant to their business.<\/p>\n\n\n\n

Some metrics that might be used within a standard can include (depending on industry):  <\/p>\n\n\n\n