The 12 Essential Sustainability Reporting Standards for Businesses

Sustainability has become an increasingly important focus for businesses worldwide in recent years. As companies take steps to reduce their environmental footprint and improve their social responsibility, there comes a need for standardisation and consistency in reporting their sustainability performance.

This is where the 12 Environmental, Social and Governance Sustainability Reporting Standards (ESRS) come in. These 12 standards cover a range of topics that businesses must report on in order to showcase their commitment to sustainability. In this blog post, we will explore each of these 12 ESRS and what they mean for businesses who want to enhance their sustainability strategies.

Table of Contents:

1. General Requirements
2. General Disclosures
3. Climate
4. Pollution
5. Water and Marine Resources
6. Biodiversity and Ecosystems
7. Resource Use and Circular Economy
8. Own Workforce
9. Workers in the Value Chain
10. Affected Communities
11. Consumers and End Users
12. Business Conduct

1. General Requirements (Cross-cutting)

The General Requirements cross-cutting standard covers the organisations approach to sustainability and the reporting framework used to measure and report on sustainability performance. This standard requires businesses to disclose their sustainability policies, governance structure, and key performance indicators used to track sustainability performance.

2. General Disclosures (Cross-cutting)

The General Disclosures cross-cutting standard covers the organisations holistic sustainability performance, including the impacts of its products and services on the environment and society, and how it is addressing these impacts. Businesses must report on their overall sustainability strategy, including their targets and progress towards achieving these targets, stakeholder engagement, and management approach.

3. Climate (Environment)

The Climate standard covers the organisations greenhouse gas emissions, its impact on climate change, and its response to these issues. This standard requires businesses to disclose their greenhouse gas emissions from operations and supply chain, their contribution to climate change, risk and opportunities related to climate change, and targets and progress towards reducing their carbon footprint.

4. Pollution (Environment)

The Pollution standard covers the organisations impact on the environment due to emissions, discharges, and other pollutants, and how it is managing these impacts. Businesses must report on their emissions and waste, and the steps they are taking to mitigate or reduce these impacts on the environment.

5. Water and Marine Resources (Environment)

The Water and Marine Resources standard covers the organisations impact on water resources, including water consumption and wastewater discharge, and how it is managing these resources. This standard requires businesses to disclose their water usage, any risks related to water scarcity, and initiatives aimed at reducing their impact on water resources.

6. Biodiversity and Ecosystems (Environment)

The Biodiversity and Ecosystems standard covers the organisations impact on biodiversity and ecosystems and how it is preserving these resources. Businesses must report on the impacts of their operations on ecosystems and biodiversity and any steps they are taking to mitigate these impacts.

7. Resource Use and Circular Economy (Environment)

The Resource Use and Circular Economy standard covers the organisations management of materials, including the sourcing of raw materials and the use of recycled materials. This standard requires businesses to disclose their resource consumption and initiatives aimed at improving resource efficiency, such as adopting circular economy principles.

8. Own Workforce (Social)

The Own Workforce standard covers the organisations management of its employees, including fair employment practices and health and safety. Businesses must report on their employee retention, workforce diversity and inclusion, health and safety performance, and any initiatives aimed at improving employee welfare.

9. Workers in the Value Chain (Social)

The Workers in the Value Chain standard covers the organisations impact on workers throughout its supply chain, including fair labor practices and ethical sourcing. This standard requires businesses to disclose their labor practices in their supply chain and any initiatives aimed at improving the working conditions of their suppliers and contractors.

10. Affected Communities (Social)

The Affected Communities standard covers the organisations impact on surrounding communities, including indigenous communities and marginalised groups. Businesses must report on the social and economic impacts of their operations on these communities and initiatives aimed at engaging with these communities and supporting their development.

11. Consumers and End Users (Social)

The Consumers and End Users standard covers the organisations impact on its customers and their satisfaction levels. Businesses must report on their customer satisfaction levels, responsible marketing practices, and any initiatives aimed at improving customer experiences and loyalty.

12. Business Conduct (Governance)

The Business Conduct standard covers the organisations ethical and legal conduct, including anti-corruption and anti-bribery measures. This standard requires businesses to disclose their initiatives aimed at promoting ethical and legal conduct, including their code of ethics and whistleblower policies.

Sustainability reporting is essential for businesses to showcase their commitment to sustainability and transparency. The 12 Environmental, Social and Governance Sustainability Reporting Standards (ESRS) provide a framework for businesses to report on their sustainability performance in a consistent and standardised manner.

By addressing each of these 12 ESRS, businesses can demonstrate their commitment to sustainability and work towards their sustainability goals. We hope this blog post has provided you with insights into the 12 ESRS and why they are so important for businesses today, for further questions reach out to us at Dreher Consulting and transform your future.

Are you looking for more topics on Sustainability? Find an overview of all articles here: Blog Sustainability

or find out more about our consulting services on our website: Sustainability