How to figure out which ESG framework to use

– Engagement with stakeholders – particularly investors – will help your company decide which ESG framework to use.
– You may wind up using more than one framework. A number of companies produce both TCFD and SASB reports.

More likely than not, the beacon that will help guide your organization in deciding which reporting framework(s) to use for your ESG reporting will come in the form of engagement with your stakeholders – particularly your investors.

That will help you to make an informed decision about your course of action. Analyzing your business strategy against what seems to be working in your industry, for your investors. For your location. Does your company have global operations?

You may wind up deciding that more than one reporting framework is a good fit. In that case, you would be preparing more than one ESG report. Maybe you will have both a TCFD report and a SASB report. Maybe the framework released by the World Economic Forum last year.

If you do produce more than one report, it is wise to also prepare a “content index” – see this example from Travelers – so that readers can more easily find what they’re looking for across your multiple reports. Hat tip to Yafit Cohn of Travelers for this wisdom – see Yafit’s video about the topic!