Members looking for guidelines to help structure their programs can refer to several which could be used as a reference point for the elements they consider pertinent to their program or more formally adopted.
Global Reporting Initiative
https://www.globalreporting.org/
Standards developed by the Global Reporting Initiative (GRI) are reporting standards for non-financial information – economic, environmental and social – which enable consistent reporting and support organizations in meeting their stakeholders needs for comparable data. The GRI Standards are structured in such a way that organizations can prepare a complete report about their impacts on sustainable development.
Many thousands of reports have already been published worldwide, in accordance with GRI standards. According to a study by KPMG, they are the most widely used standard for sustainability reports and can be used by any organization, large or small, public or private, from any sector or location.
SASB Standards as part of the ISSB
The Sustainability Accounting Standards Board (SASB), focuses specifically on the financial materiality of sustainability issues.
SASB standards identify a subset of environmental, social, and governance issues most relevant to financial performance in each of 77 industries, including the gambling industry. They are designed to help companies disclose financially-material sustainability information to investors.
SASB standards are maintained by the IFRS Foundation. The International Sustainability Standards Board (ISSB) of the International Financial Reporting Standards (IFRS) Foundation is currently developing a comprehensive global baseline of sustainability disclosures for global capital markets. As such, SASB standards have been consolidated into the IFRS Foundation, with the ISSB committing to build on the industry-based SASB Standards as they develop IFRS Sustainability Disclosure Standards.
ISO 26000
The International Standards Organisation (ISO) has developed a voluntary International Standard ISO 26000:2010, Social responsibility, which is intended to assist organizations in contributing to sustainable development. The standard seeks to promote a common understanding of social responsibility while complementing – but not replacing – other existing tools and initiatives.
ISO 26000 addresses seven core subjects of social responsibility defined in the standard:
- Community involvement and development
- Human Rights
- Labour practices
- Consumer issues
- Fair operating practices
- The environment
- Organizational governance
The Task Force on Climate-related Financial Disclosures
The Task Force on Climate-related Financial Disclosures (TCFD), is a global organization formed to develop a set of recommended climate-related disclosures that companies and financial institutions can use to better inform investors, shareholders and the public of their climate-related financial risks.
The TCFD was created in 2015 by the Basel-based Financial Stability Board (FSB) established in 2009 after the global financial crisis, to promote international financial stability. The TCFD focuses on reporting on the impact an organisation has on the global climate. It seeks to make climate-related disclosures more consistent and therefore more comparable. The idea is that better information will allow companies to incorporate climate-related risks and opportunities into their risk management, strategic planning and decision-making processes. TCFD has developed a reporting framework based on a set of consistent disclosure recommendations for use by companies as a means of providing transparency about their climate-related risk exposures to investors, lenders and insurance underwriters, which will allow economies to have the necessary information to better assess the impact and effects of an organisation on climate change. Around 1,700 organisations worldwide, in the public and private sectors, as well as government entities, support the TCFD.
Taskforce on Nature-related Financial Disclosures
The unprecedented rate of nature and biodiversity loss is threatening the foundation of society and presents substantial risks to corporate and financial institutions alike. In response to this, the Taskforce on Nature-related Financial Disclosures (TNFD) launched in June 2021 and is an international initiative that builds on a model developed by the Taskforce on Climate-Related Financial Disclosures (TCFD – see above).
The mission of the TNFD is to deliver a risk management and disclosure framework for organizations to report and act on nature-related risks and opportunities, with the ultimate aim of supporting a shift in global financial flows toward nature-positive outcomes.
Carbon Disclosure Projects
The Carbon Disclosure Project (CDP) is a not-for-profit charity that runs the global disclosure framework for investors, companies, cities, states and regions to manage their environmental impacts. It has been established as a common standard to report on CO2 related matters over the last 20 years and works closely together with other standard organizations, especially TCFD (see above).
CDP is used by companies to assesses their greenhouse gas emissions, and their plans to reduce them. Companies must answer an annual questionnaire about their emissions and actions taken to reduce them.
European Sustainability Reporting Standards
On 21 April 2021, the European Commission adopted a legislative proposal for a Corporate Sustainability Reporting Directive (CSRD). One of the key provisions of the CSRD is that companies in scope would have to report in compliance with European sustainability reporting standards (ESRS) adopted by the European Commission as delegated acts, on the basis of technical advice provided by EFRAG.
The ERS Standards define the rules of the CSRD by the EU. They set the structure and disclosure requirements that companies, banks and insurance companies in scope will need to report on.
The ESRS consider the existing European law and initiatives as well as European and international sustainability reporting initiatives, facilitating the interoperability with various standards, such as ISSB, TCFD and GRI, to avoid double disclosure efforts by companies.
According to the ESRS, all companies covered by the CSRD will be required to align their sustainability and ESG reports according to the ESRS. The estimated number of affected companies is 49,000. Therefore, the ESRS will ultimately apply to:
- Large EU companies, defined by having met at least two of the three criteria: 1) more than 250 employees, 2) more than EUR 40 million net revenue, or 3) more than EUR 20 million total assets
- Listed EU companies, including listed SMEs (SMEs are expected to be given three more years to comply), except micro-undertakings. The latter are companies that meet two of the following three criteria: 1) less than 10 employees, 2)less than EUR 700,000 net revenue, or 3) less than EUR 350,000 total assets.
- Non-EU parent companies (companies not established in the EU) but with securities listed on the EU-regulated markets, and a combined group turnover in the EU of more than EUR 150 million
The United Nations Sustainable Development Goals SDGs
The UN Sustainable Development Goals (SDGs), also known as the Global Goals, were adopted by the United Nations in 2015 as a universal call to action to end poverty, protect the planet, and ensure that by 2030 all people enjoy peace and prosperity.
The 17 SDGs are integrated—they recognize that action in one area will affect outcomes in others, and that development must balance social, economic and environmental sustainability.
Countries have committed to prioritize progress for those who're furthest behind. The SDGs are designed to end poverty, hunger, AIDS, and discrimination against women and girls.
The latest progress report published by the UN found that many of the SDGs are moderately to severely off track.
UN Global Compact
The United Nations Global Compact is an initiative that global corporations can sign on to commit to responsible business practices in the areas of human rights, labor, the environment, and corruption. It has 10 operating principles outlining these values which serve as a reporting framework for an annual progress report that signatories (as members) must publish.
Companies that join the compact are expected to integrate these principles into their corporate strategies, culture, and day-to-day operations. They are also expected to advocate the principles publicly and communicate with stakeholders on progress toward meeting the principles. Any company that commits to upholding the principles may join the compact, which is not legally binding and is purely voluntary.