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Companies must first consider whether they need to adhere to any mandatory reporting regulations within their particular industry and at scale (global, national, and local). This might include national compliance laws for reporting or local environmental reporting requirements and standards like green building codes. Disclosure regulations like the European Unions' new CSRD and the proposed SEC climate-related disclosure rules, mandate the disclosure of specific sustainability information, creating a level playing field for certain organizations and sectors within a jurisdiction and ensuring transparency and accountability. Choosing to report to or craft reports based on certain standards, frameworks, principles, and ranking institutions is voluntary- unless they get baked into regulations by certain countries (The UK requires TCFD disclosure) or used to inform regulatory proposals. However, certain standards and frameworks may be quasi-mandated for some firms due to intense investor pressure or requirements from lending institutions. In order to engage in sustainability reporting, companies may choose to craft a unique internal corporate sustainability report that cross-references key information from several reporting frameworks as a useful guide. These reports are meant for marketing purposes, public audiences, and stakeholders. Whether it is voluntary or simply mandated by relevant governing bodies, companies will also report information to specific frameworks, standards, or rating agencies with the appropriate requirements met for the framework(s) in question, as well as craft internal reports following the exact requirements of certain frameworks. Many investors are losing confidence in the sustainability reports of firms because the information varies so widely from one company to another. They will increasingly demand reporting that adheres to a common set of standards, just as it does in financial reporting. Closely following the most common and widely recognized standards available for use today is important for companies that want to ensure their readiness for possible compliance standards or to set their sustainability reports apart as qualified and mature. ROLE OF STANDARDS REGULATIONS VS. VOLUNTARY STANDARDS:

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