Issue link: https://resources.tangoanalytics.com/i/1508314
UNDERSTANDING THE DIFFERENCES BETWEEN THE LEADING REPORTING FRAMEWORKS With over 600 estimated sustainability frameworks and regulations available worldwide, it is undeniably a major hurdle and efficiency problem for organizations trying to determine which set of standards will best suit their industry needs and stakeholders' wants. Reporting schemas are made in an attempt to standardize and provide guidance on 1) report content and 2) report/data quality. Detailed on the next page are the most widely used and robust reporting tools as of 2023 that play a role in consolidated universal standards and regulatory measures. A few key points to keep in mind when attempting to discern which framework(s) are relevant to adopt: 01 Frameworks and Standards are the guiding principles of how and what you must disclose. Both are authoritative, endorsed by relevant stakeholders, and often designed to be used together as complements. Of the two, only standards make disclosures auditable. Frameworks vs. Standards: FRAMEWORKS Frameworks contextualize information, outlining a set of principles for "how" a report is structured and guidance to shape thoughts on a set of broad topics (allows for more flexibility than a standard on choosing "what" to report on). [Global Reporting Initiative (GRI), and the United Nations Global Compact (UNGC)] STANDARDS Standards aim to align organizations with a set of specific and replicable requirements that outline "what" should be reported for each topic, including metrics (often more prescriptive, actionable, and in-depth than frameworks). [Sustainability Accounting Standards Board (SASB), the Task Force on Climate-related Financial Disclosures (TCFD), and the International Sustainability Standards Board (ISSB)] Sustainability & Energy Management Simplified