ESG Reporting Frameworks Explained
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Contents
- What are ESG reporting frameworks?
- What are the main ESG frameworks in 2026?
- About ISSB
- GRI vs ISSB vs ESRS
- The importance of double materiality
- Is ESG reporting mandatory?
- FAQ
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What are ESG reporting frameworks?
An ESG reporting framework provides the principles, structure and guidance that organisations use to disclose their environmental, social and governance (ESG) performance. A standard, by contrast, specifies the exact metrics, data points and disclosures required within that structure.
The distinction matters because companies often use both simultaneously – a framework like GRI sets the overall approach, while a standard like ISSB’s IFRS S1 and S2 defines precisely what must be disclosed and how. Understanding this difference is the first step to navigating a landscape where multiple overlapping requirements can apply to the same organisation at the same time.
| Acronym | Name | Description |
|---|---|---|
GRI |
Global Reporting Initiative |
The oldest and most widely used sustainability reporting framework globally. Covers environmental, social and governance topics from a stakeholder and impact perspective. Voluntary, but widely adopted as the default global baseline. |
ISSB IFRS S1 & S2 |
International Sustainability Standards Board |
Produces IFRS S1 (general sustainability disclosures) and IFRS S2 (climate-related disclosures) – the emerging global baseline for investor-focused reporting. Adopted as mandatory law in Australia (AASB S1/S2), the UK (UK SDR), Canada, Singapore and others. Incorporates and supersedes the former TCFD recommendations. |
ESRS |
European Sustainability Reporting Standards |
The standards companies must follow when reporting under the EU’s Corporate Sustainability Reporting Directive (CSRD). Developed by EFRAG, they require disclosure across environmental, social and governance topics using a double materiality lens – meaning companies must report on both how sustainability issues affect the business financially and how the business impacts the environment and society. |
CSRD |
Corporate Sustainability Reporting Directive |
The EU law that makes sustainability reporting mandatory for large in-scope companies. It defines who must report and requires disclosure against ESRS. Following the Omnibus I package (February 2026), mandatory scope was narrowed to companies with 1,000+ employees and €450M+ turnover. Non-EU companies with €450M+ in EU turnover and a qualifying EU subsidiary are also in scope. |
SASB |
Sustainability Accounting Standards Board |
An investor-led framework providing industry-specific standards for financially material sustainability topics. Now maintained by the IFRS Foundation following its merger into the Value Reporting Foundation in 2021 and subsequent consolidation in 2022. Widely used alongside ISSB standards to provide industry-specific granularity. |
CDP |
Carbon Disclosure Project |
An investor-led global disclosure system focused on three topic areas: climate change, water security and deforestation. Companies respond to CDP questionnaires and receive scores used by investors and customers. Voluntary, but requested by thousands of institutional investors and large corporate buyers as a supply chain requirement. |
SFDR |
Sustainable Finance Disclosure Regulation |
EU regulation imposing mandatory ESG disclosure obligations on financial market participants – including asset managers, pension funds and insurers. Requires disclosure at both entity level and product level, classifying financial products according to their sustainability characteristics. |
TNFD |
Taskforce on Nature-related Financial Disclosures |
A voluntary framework for organisations to assess, manage and disclose their nature-related dependencies, impacts, risks and opportunities. Published its final recommendations in 2023. Modelled on the structure of the former TCFD and increasingly referenced alongside climate disclosure as biodiversity and natural capital risks attract regulatory attention. |
DJSI |
Dow Jones Sustainability Index |
A family of indices maintained by S&P Global that assess companies on ESG criteria to support investor decision-making. Unlike reporting frameworks, companies do not self-report to DJSI – they are assessed and scored by S&P Global through the Corporate Sustainability Assessment (CSA). Inclusion in the index is a widely recognised sustainability credential. |
SEC rules |
US SEC climate disclosure rules |
Mandatory climate-related disclosure rules from the US Securities and Exchange Commission, applying to large accelerated filers. Require disclosure of material climate risks, governance, and Scope 1 and 2 emissions. Scope 3 reporting was removed from the final rules. California’s SB 253 separately mandates Scope 3 disclosure for companies with $1B+ revenue operating in California. |
|
TCFD
Disbanded 2023
|
Task Force on Climate-Related Financial Disclosures |
An investor-led body that published widely adopted recommendations for climate-related financial disclosure across four pillars: governance, strategy, risk management, and metrics and targets. Formally disbanded in October 2023 having achieved its founding goal. Its recommendations have been incorporated directly into ISSB IFRS S2 – companies previously reporting under TCFD should transition to IFRS S2. |
|
IIRC / IR
Absorbed 2022
|
International Integrated Reporting Council |
A coalition that promoted the Integrated Reporting (<IR>) Framework, which helps organisations communicate how they create value across financial and non-financial dimensions. The IIRC merged with SASB to form the Value Reporting Foundation in 2021, which was then absorbed into the IFRS Foundation in 2022. The Integrated Reporting Framework itself remains available and in active use. |
DJSI is an investor-facing performance index assessed by S&P Global, not a self-reporting framework. TCFD was disbanded in October 2023; its recommendations are now incorporated into ISSB IFRS S2. IIRC was absorbed into the IFRS Foundation in 2022; the Integrated Reporting Framework remains in use. ISSB standards have been adopted nationally as AASB S1/S2 in Australia, UK SDR in the UK, and CSSB standards in Canada.
Anthesis helps organisations navigate and report across all major ESG frameworks. Explore our ESG reporting solutions.
What are the main ESG reporting frameworks in 2026?
The ESG reporting landscape has consolidated significantly since 2022. What was once a fragmented field of competing voluntary frameworks has moved toward a clearer – though still complex – structure built around three main pillars:
- GRI for broad stakeholder-focused sustainability reporting
- ISSB for investor-focused financial disclosure
- ESRS for regulatory compliance within the EU
Most large organisations operating internationally will need to engage with more than one of these simultaneously, and understanding how they relate to each other is as important as understanding each one individually.
For detailed guidance on specific regulations including CSRD, ISSB, SFDR and CBAM, visit the Anthesis regulations hub.
ISSB standards (IFRS S1 and S2): the emerging global baseline
The International Sustainability Standards Board (ISSB), established under the IFRS Foundation in 2021, published its first two standards in June 2023: IFRS S1, which covers general sustainability-related financial disclosures, and IFRS S2, which covers climate-related disclosures.
Together, they represent the closest thing to a global baseline for investor-focused sustainability reporting. ISSB standards have now been adopted or are being adopted in over 20 jurisdictions, including the UK, Australia, Canada, Japan and Singapore, making them the most important development in ESG disclosure standards since GRI launched in the late 1990s.
Importantly, ISSB incorporates the recommendations of the now-disbanded TCFD – companies that were previously reporting to TCFD should now transition to IFRS S2.
GRI vs ISSB vs ESRS: which framework applies to your company?
The three dominant ESG reporting frameworks differ significantly in who they are designed for, what they require, and whether compliance is mandatory.
- GRI is designed for broad stakeholder communication – it is voluntary, globally applicable, and covers the widest range of ESG topics.
- ISSB is designed for investors and capital markets – it focuses on financially material sustainability risks and is being adopted as mandatory law in a growing number of countries.
- ESRS is designed for regulatory compliance within the EU – it is mandatory for all in-scope CSRD companies and uses a double materiality lens that requires disclosure of both financial risks and real-world impacts.
For many large organisations, particularly those with EU operations, all three will be relevant simultaneously.
What is double materiality, and why does it matter?
Double materiality is the principle – central to CSRD and ESRS – that companies must assess sustainability issues from two directions simultaneously.
- Financial materiality: how do sustainability risks and opportunities affect the company’s financial performance?
- Impact materiality: how does the company’s business affect the environment and society?
A company must report on an issue if it is material from either direction – not just if it creates financial risk. This is a significant departure from frameworks like ISSB, which focus exclusively on financial materiality, and from earlier voluntary frameworks like TCFD. For companies transitioning from TCFD or ISSB-aligned reporting to CSRD compliance, understanding this distinction is the most important conceptual shift required.
Is ESG reporting mandatory?
Whether ESG reporting is mandatory depends on where your company is headquartered, where it operates, and how large it is. The EU has gone furthest with the CSRD, which makes comprehensive sustainability reporting – including Scope 3 emissions – mandatory for large in-scope companies under revised Omnibus I thresholds (1,000+ employees, ā¬450M+ turnover).
In the UK, large listed companies and financial institutions face mandatory climate disclosure aligned with IFRS S2. Australia mandated ISSB-aligned climate reporting from January 2025 for its largest companies, with smaller companies phasing in through 2027. In the US, mandatory Scope 3 reporting has been removed from the SEC’s final climate disclosure rules, though California’s SB 253 requires it for companies with over $1 billion in annual revenue operating in the state.
FAQ
Double materiality is a concept central to the EU’s CSRD and ESRS standards. It requires companies to assess sustainability issues from two directions: financial materiality (how sustainability risks affect the company financially) and impact materiality (how the company’s activities affect the environment and society). A company must disclose any issue that is material from either direction. This differs from ISSB, which uses financial materiality only.
TCFD (Task Force on Climate-Related Financial Disclosures)
ā disbanded October 2023
The TCFD was formally disbanded in October 2023 after concluding it had achieved its founding goal: embedding climate risk disclosure into mainstream corporate and financial reporting. Its four-pillar framework – governance, strategy, risk management, and metrics and targets – has been directly incorporated into ISSB’s IFRS S2 climate standard. Companies that were previously reporting under TCFD do not need to start from scratch; IFRS S2 is broadly compatible with TCFD and provides a clear transition path. Regulators in the UK, Australia and elsewhere that mandated TCFD-aligned disclosure have updated their requirements to reference ISSB instead.
CDSB (Climate Disclosure Standards Board)
– consolidated into IFRS Foundation, January 2022
The CDSB, a collaborative forum that worked to integrate climate and environmental information into mainstream financial reporting, was consolidated into the IFRS Foundation in January 2022 as part of the broader move to establish the ISSB. Its technical resources and expertise informed the development of IFRS S2. Companies that referenced CDSB guidance in their reporting should now align with ISSB standards.
IIRC and SASB
– merged into the IFRS Foundation
The International Integrated Reporting Council (IIRC) and the Sustainability Accounting Standards Board (SASB) merged in 2021 to form the Value Reporting Foundation (VRF), which was itself consolidated into the IFRS Foundation in August 2022. SASB standards – which provide industry-specific financially material sustainability metrics – continue to be actively maintained and published by the IFRS Foundation, and remain widely used alongside ISSB standards. The Integrated Reporting Framework similarly continues to be available, though it is no longer governed by an independent body.
It depends on where you operate and your company size. It is mandatory under the EU’s CSRD for large in-scope companies, under UK SDR rules for listed companies and financial institutions, and under Australian climate disclosure laws from 2025. In the US, federal mandatory requirements are limited, though California’s SB 253 extends them significantly. Globally, GRI and ISSB reporting remains voluntary except where adopted into national law.
It depends on your geography, size and primary audience. EU companies above CSRD thresholds must report under ESRS. Companies in the UK, Australia and a growing number of other jurisdictions must align with ISSB standards. Companies reporting voluntarily to a global stakeholder audience typically use GRI. Many large organisations use a combination – GRI for breadth, ISSB for investor audiences, and ESRS where legally required.
A framework provides principles and structure for sustainability reporting – GRI and TCFD are examples. A standard specifies exact metrics, data points and disclosure requirements within that structure – ISSB’s IFRS S1 and S2 are examples. In practice, organisations often use both: a framework shapes their overall approach while a standard defines what they must specifically disclose.
The ESG reporting landscape is complex and changing fast. Our team helps organisations identify their obligations, build credible disclosure strategies and report with confidence – whether that means CSRD, ISSB, GRI or a combination of all three.
