Difference between revisions of "Sustainability Reporting"
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== Definition == | == Definition == | ||
| − | '''Sustainability Reporting''' (also ''Non-Financial Reporting'') is the disclosure (publication) of private information that reveals | + | '''Sustainability Reporting''' (also ''Non-Financial Reporting'') is the disclosure (publication) of private information that reveals non-public aspects of an organization's [[Sustainability]] profile. It may be voluntary, solicited, or required disclosure. |
In current taxonomies sustainability reporting might concern information addressing environmental, social, economic and governance issues [[ESG Criteria]]. The [https://sdgcompass.org/ SDG Compass] has been created by [[Global Reporting Initiative]] with the aim of linking the GRI standards to the [[Sustainable Development Goals]] | In current taxonomies sustainability reporting might concern information addressing environmental, social, economic and governance issues [[ESG Criteria]]. The [https://sdgcompass.org/ SDG Compass] has been created by [[Global Reporting Initiative]] with the aim of linking the GRI standards to the [[Sustainable Development Goals]] | ||
== Legal Requirements == | == Legal Requirements == | ||
| − | In Europe, the legislative framework for sustainability reporting practices is based on Directive 2014/95/EU (Non-Financial Reporting Directive or NFRD), which provides a uniform regulatory framework for non-financial information for EU Member States. Companies that fall within the scope of the EU Directive 2014/95/EU on non-financial reporting, the main | + | In Europe, the legislative framework for sustainability reporting practices is based on Directive 2014/95/EU (Non-Financial Reporting Directive or NFRD), which provides a uniform regulatory framework for non-financial information for EU Member States. Companies that fall within the scope of the EU Directive 2014/95/EU on non-financial reporting, the main EU-wide initiative in this area, must publish information on the following areas: |
* Environmental protection | * Environmental protection | ||
| Line 12: | Line 12: | ||
* The fight against corruption and bribery | * The fight against corruption and bribery | ||
* Diversity on company boards (in terms of age, gender, education and professional experience). | * Diversity on company boards (in terms of age, gender, education and professional experience). | ||
| − | |||
== Issues and Challenges == | == Issues and Challenges == | ||
* Lack of standardization (multiplicity of reporting frameworks hindering comparison) | * Lack of standardization (multiplicity of reporting frameworks hindering comparison) | ||
* [[Greenwashing]] (manipulating sustainability reports to present an improved organizational image, either by not disclosing negative information or by over-emphasizing positive information | * [[Greenwashing]] (manipulating sustainability reports to present an improved organizational image, either by not disclosing negative information or by over-emphasizing positive information | ||
| − | |||
== See Also == | == See Also == | ||
| − | * [[European | + | * [[Glossary of Sustainable Finance]] |
| + | * [[European Sustainability Reporting Standards | ESRS]] | ||
* [[GHG Accounting]] | * [[GHG Accounting]] | ||
* [[Integrated Reporting]] | * [[Integrated Reporting]] | ||
| − | + | ||
| + | [[Category:Sustainability Reporting]] | ||
Latest revision as of 15:19, 9 May 2023
Definition
Sustainability Reporting (also Non-Financial Reporting) is the disclosure (publication) of private information that reveals non-public aspects of an organization's Sustainability profile. It may be voluntary, solicited, or required disclosure.
In current taxonomies sustainability reporting might concern information addressing environmental, social, economic and governance issues ESG Criteria. The SDG Compass has been created by Global Reporting Initiative with the aim of linking the GRI standards to the Sustainable Development Goals
Legal Requirements
In Europe, the legislative framework for sustainability reporting practices is based on Directive 2014/95/EU (Non-Financial Reporting Directive or NFRD), which provides a uniform regulatory framework for non-financial information for EU Member States. Companies that fall within the scope of the EU Directive 2014/95/EU on non-financial reporting, the main EU-wide initiative in this area, must publish information on the following areas:
- Environmental protection
- Social responsibility and treatment of employees
- Respect for human rights
- The fight against corruption and bribery
- Diversity on company boards (in terms of age, gender, education and professional experience).
Issues and Challenges
- Lack of standardization (multiplicity of reporting frameworks hindering comparison)
- Greenwashing (manipulating sustainability reports to present an improved organizational image, either by not disclosing negative information or by over-emphasizing positive information
