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Introduction to ESG Reporting

ESG Reporting Diagram

Concept: Environmental, Social, and Governance (ESG). Objective: To evaluate the extent to which a corporation works on behalf of social goals that go beyond the role of a corporation to maximize profits.

Why ESG Methodologies Matter?

In 2025, ESG is no longer optional. It is a compliance requirement (CSRD, SEC rules) and a core component of risk management.

The Double Materiality Principle

  • Impact Materiality: How the company affects the world (e.g., carbon emissions).
  • Financial Materiality: How the world affects the company (e.g., climate change risks).

Key Reporting Frameworks

  • GRI (Global Reporting Initiative)
  • SASB (Sustainability Accounting Standards Board)
  • TCFD (Task Force on Climate-related Financial Disclosures)

Implementation Steps

  1. Materiality Assessment: Identify what matters.
  2. Data Collection: Carbon accounting (Scope 1, 2, 3).
  3. Reporting: Transparency and Assurance.