How to choose right commitments and reporting frameworks
Whether you are looking for non-financial reporting (NFR), corporate social responsibility (CSR) reporting, or environmental, social and governance (ESG) reporting framework to improve the sustainability of your business, you better start here.
Companies' non-financial reporting is evolving rapidly and at the same time we can read releases about new local and international initiatives and stricter regulations.
It is difficult to choose between different options and easily the decision on the most suitable reporting framework moves forward all the time.
Decision-making is probably easier when you review and clarify your company’s strategy and think about how processes can be developed by improving overall sustainability and risk management in terms of ESG.
Companies' non-financial reporting is evolving rapidly and at the same time we can read releases about new local and international initiatives and stricter regulations.
It is difficult to choose between different options and easily the decision on the most suitable reporting framework moves forward all the time.
Decision-making is probably easier when you review and clarify your company’s strategy and think about how processes can be developed by improving overall sustainability and risk management in terms of ESG.
Reporting frameworks and recommendations
UN sustainable development goals
The Sustainable Development Goals are the blueprint to achieve a better and more sustainable future for all. They address the global challenges we face, including poverty, inequality, climate change, environmental degradation, peace and justice.
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United Nations Global Compact
IPCC Intergovernmental Panel on Climate Change
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IPCC Working Group I (WGI): Sixth Assessment Report; Interactive Atlas
A novel tool for flexible spatial and temporal analyses of much of the observed and projected climate change information underpinning the Working Group I contribution to the Sixth Assessment Report, including regional synthesis for Climatic Impact-Drivers (CIDs). |
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PRI Principles for responsible investments in real estate sector
C40 Cities
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A global network of mayors taking urgent action to confront the climate crisis and create a future where everyone can thrive.
Around the world, C40 mayors and the cities they lead are taking ambitious, collaborative and urgent climate action that aligns with science-backed targets. They work together across borders in order to protect people and communities everywhere, and build a more sustainable, resilient and equitable future. |
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The Global Investor Coalition on Climate Change
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Global 100 by Corporate Knights
Science Based Targets initiative (SBTi)
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Science-based targets provide companies with a clearly-defined path to reduce emissions in line with the Paris Agreement goals. More than a thousand businesses around the world are already working with the Science Based Targets initiative (SBTi). Companies taking action.
The finance sector is key to unlocking the system-wide change needed to reach net-zero. With a new framework, financial institutions can set science-based targets and align their lending and investment activities with the Paris Agreement. |
This animation looks at what SBTs are, why they're relevant to you, and how you can participate.
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CDP (formerly Carbon Disclosure Project)
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CDP is a not-for-profit charity that runs the global disclosure system for investors, companies, cities, states and regions to manage their environmental impacts. The world’s economy looks to CDP as the gold standard of environmental reporting with the richest and most comprehensive dataset on corporate and city action.
By signing up to CDP, investors can access our vital environmental data and insights, engagement support and webinars: www.cdp.net/en/investor In 2020, there were 16 companies in Finland with a grade of A or A-. CDP Companies and Scores 2020. |
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World Business Council for Sustainable Development (WBCSD)
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WBCSD is a global, CEO-led organization of over 200 leading businesses working together to accelerate the transition to a sustainable world. "We help make our member companies more successful and sustainable by focusing on the maximum positive impact for shareholders, the environment and societies."
"Our member companies come from all business sectors and all major economies, representing a combined revenue of more than USD $8.5 trillion and 19 million employees (2021). Our global network of almost 70 national business councils gives our members unparalleled reach across the globe. Since 1995, WBCSD has been uniquely positioned to work with member companies along and across value chains to deliver impactful business solutions to the most challenging sustainability issues. |
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The Institutional Shareholder Services
Level(s)
Level(s) is a voluntary reporting framework to improve the sustainability of buildings. Using existing standards, Level(s) provides a common EU approach to the assessment of environmental performance in the built environment.
Within the Level(s) framework, each indicator is designed to link the individual building’s impact with the priorities for sustainability at the European level. This focuses the Level(s) user on a manageable number of essential concepts and indicators at building level that contribute to achieving EU and Member State environmental policy goals.
Within the Level(s) framework, each indicator is designed to link the individual building’s impact with the priorities for sustainability at the European level. This focuses the Level(s) user on a manageable number of essential concepts and indicators at building level that contribute to achieving EU and Member State environmental policy goals.
Carbon Risk Real Estate Monitor“Reducing the EU carbon footprint will require refurbishment in the existing buildings, but some of the assets retrofitting will not be financially viable”
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“Offer to the Real Estate companies a tool to measure the risk and viability of retrofitting their assets”
The European Union intends to decarbonize the building sector by 2050. Investment in retrofit could benefit the EU by up to EUR 175 bn per year. One of the biggest challenges for the reduction of GHG emissions results from the poor energy efficiency of existing buildings and still too low refurbishment rates in virtually all member states of the European Union. The reduction of the EU carbon footprint requires a significant increase of energetic retrofits in the existing property stock. The reduction of carbon-risk factors associated with premature obsolescence and potential depreciation due to changing market expectations and legal regulations are key objectives of the EU-funded research project CRREM (Carbon Risk Real Estate Monitor). CRREM aims at supporting the industry to tackle these risks and foster investments in energy efficiency as many assets will become ‘stranded’ properties that will not meet future energy efficiency standards and whose energy upgrade will not be financially viable.
The Net Zero Carbon Buildings Commitment
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The Commitment calls upon business, organisations, cities, states and regions to take urgent, ambitious and immediate climate action towards decarbonising the built environment.
Net zero carbon is when the amount of carbon dioxide emissions associated with building operations on an annual basis is zero or negative. Using WorldGBC’s definition, a net zero carbon building is highly energy efficient and fully powered from on-site and/or off-site renewable energy sources and offsets. Commitment signatories |
#BuildingLife: Ten European Green Building Councils deliver the EU Green Deal by tackling the whole-life environmental impacts of the buildings sector
#BuildingLife will accelerate the ambitions of the European Green Deal in the building sector, and create the first region-wide response to the vision of a net-zero embodied carbon in built environment set out in WorldGBC’s 2019 report. The project will create a pathway for other world regions to follow.
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Call On Carbon 2021
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"Climate change accelerates and mitigation actions lag behind. It is estimated that the level of ambition needs to be roughly tripled or maybe even five-folded to achieve Paris Agreement targets. Today, only less than a quarter of global greenhouse gas emissions are covered by carbon pricing initiatives. To achieve needed level of actions and necessary investments we need to kick-start a step change on this.
When/where a carbon price is applied, the revenues generated from carbon pricing are preferably invested in sustainable transition efforts, the green economy, green technology development and natural capital as well as a support for a just transition for affected workers and farmers, families and communities. We are only one investment cycle away from 2050 and this is likely to be the last chance to get the policies right. We urge countries to act on this during this year 2021. This would support COP26 in Glasgow and make it a true game changer." |
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Reporting standards
GRI (Global Reporting Initiative)
GRI is the independent, international organization that helps businesses and other organizations take responsibility for their impacts, by providing them with the global common language to communicate those impacts. GRI provide the world’s most widely used standards for sustainability reporting – the GRI Standards. To keep the GRI Standards relevant and up to date, the Global Sustainability Standards Board (GSSB) sets out a new work program every three years. The GSSB work program includes projects to review existing GRI Standards as well as to develop new Standards.
Greenhouse Gas Protocol (GHG Protocol)
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GHG Protocol establishes comprehensive global standardized frameworks to measure and manage greenhouse gas (GHG) emissions from private and public sector operations, value chains and mitigation actions.ghgprotocol.org/about-us
Building on a 20-year partnership between World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD), GHG Protocol works with governments, industry associations, NGOs, businesses and other organizations. GHG offer online training on our standards and tools, as well as the “Built on GHG Protocol” review service, which recognizes sector guidance, product rules and tools that are in conformance with GHG Protocol standards. |
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International Financial Reporting Standards, commonly called IFRS
International Financial Reporting Standards, commonly called IFRS, are accounting standards issued by the IFRS Foundation and the International Accounting Standards Board. They constitute a standardised way of describing the company’s financial performance and position so that company financial statements are understandable and comparable across international boundaries.
Task Force on Climate-related Financial Disclosures TCFD
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The Financial Stability Board created the TCFD to improve and increase reporting of climate-related financial information by using SASB Standards and the CDSB Framework to enhance Climate-Related Financial Disclosures in mainstream reporting.
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New: ISO/TC 322 Sustainable finance
ISO/TC 322 is the technical committee responsible for the development of standards relating to sustainable finance. We look to integrate sustainability considerations including environmental, social and governance (ESG) practices in the financing of economic activities.
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Financial services are estimated to be between 12-19% of the global economy - a huge sector characterised by many segments. Achieving the UN SDGs by 2030 will require doubling current investment flows to the range of US$5 trillion to US$7 trillion each year, requiring a significant scaling up of capital flows and capacity to practice sustainable finance.
ISO/TC 322’s aim is to consolidate the rapid learning and innovations in sustainable finance at an international scale and enable member countries to finance delivery of the UN SDGs at faster pace, lower cost and reduced risk, whilst exposing financial organizations to the value of the international standardization process. Another key objective of the planned sustainable finance standards will be to anticipate and facilitate the trend towards a more balanced sustainable approach competent in meeting environmental, social, and governance goals in even measure. 
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1.12.2020: How to get involved ISO/TC 322
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ISO 19600:2014 Compliance management systems
— Guidelines
ISO 19600:2014 provides guidance for establishing, developing, implementing, evaluating, maintaining and improving an effective and responsive compliance management system within an organization.
The guidelines on compliance management systems are applicable to all types of organizations. The extent of the application of these guidelines depends on the size, structure, nature and complexity of the organization. ISO 19600:2014 is based on the principles of good governance, proportionality, transparency and sustainability.
The guidelines on compliance management systems are applicable to all types of organizations. The extent of the application of these guidelines depends on the size, structure, nature and complexity of the organization. ISO 19600:2014 is based on the principles of good governance, proportionality, transparency and sustainability.
ISO 26000 Social responsibility
ISO 26000:2010 provides guidance rather than requirements, so it cannot be certified to unlike some other well-known ISO standards. Instead, it helps clarify what social responsibility is, helps businesses and organizations translate principles into effective actions and shares best practices relating to social responsibility, globally. It is aimed at all types of organizations regardless of their activity, size or location.
ISO 31000 Risk management
ISO 31000 cannot be used for certification purposes, but does provide guidance for internal or external audit programmes. Organizations using it can compare their risk management practices with an internationally recognized benchmark, providing sound principles for effective management and corporate governance.
ISO 45001 Occupational health and safety
According to the International Labour Organization, more than 7 600 people die from work-related accidents or diseases every single day. That’s why an ISO committee of occupational health & safety experts set to work to develop an International Standard (ISO 45001) with the potential to save almost three million lives each year.
International Auditing and assurance Standards Board IAASB
AccountAbility
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AccountAbility is a global consulting and standards firm that works with businesses, investors, governments, and multi-lateral organizations on ESG matters to achieve opportunities, advance responsible business practices, and transform their long-term performance.
AA1000 Assurance Standard The AA1000 Assurance Standard (AA1000AS v3) is the leading methodology used by sustainability professionals worldwide for sustainability-related assurance engagements, to assess the nature and extent to which an organization adheres to the AccountAbility Principles. The AA1000AS v3 is a next generation standard for sustainability assurance that:
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Benchmarking
GRESB
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GRESB Assessments are guided by what investors and the industry consider to be material issues in the sustainability performance of real asset investments, and are aligned with international reporting frameworks, such as GRI, PRI, SASB, DJSI, TCFD recommendations, the Paris Climate Agreement, UN SDGs, region and country specific disclosure guidelines and regulations. About GRESB and ESG benchmarking.
GRESB Participants Members Real Estate. |
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INREV
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INREV is the European Association for Investors in Non-Listed Real Estate Vehicles. INREV is Europe's leading platform for sharing knowledge on the non-listed (unlisted) real estate industry. INREV's goal is to improve transparency, professionalism and best practice across the sector, making the asset class more accessible and attractive to investors. About INREV.
INREV Member Directory. |
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Rating tools
Rating tools that are administered by Green Building Councils and are common in Europe
Below is a list of rating tools (in alphabetical order) that are administered by Green Building Councils. Source: www.worldgbc.org
Finnish rating tools
EU regulation
The non-financial reporting directive (NFRD)
Directive 2014/95/EU – also called the non-financial reporting directive (NFRD) – lays down the rules on disclosure of non-financial and diversity information by large companies. This directive amends the accounting directive 2013/34/EU. Companies are required to include non-financial statements in their annual reports from 2018 onwards.
SFDR 2019/2088 sustainability‐related disclosures in the financial services sector
- SFDR is an attempt to bring some order to the Wild West that is the land of ESG, by requiring asset managers to make disclosures about the sustainability-related features of their products in a standardized way, aiding comparability and transparency.
- One of its most visible impacts will be that from 10 March, asset managers will have to classify their sustainability-related funds and mandates as one of two types of products, so-called Article 9 or Article 8 products.
- Article 9 products are those with a sustainable investment objective, with sustainable investment defined as an investment in an economic activity contributing to an environmental or social objective. Article 8 products are those that “promote, among other characteristics, environmental or social characteristics.
Final Report on draft Regulatory Technical Standards (RTS)
The European Supervisory Authorities (ESAs) have developed through the Joint Committee (JC) draft Regulatory Technical Standards (RTS) with regard to the content, methodologies and presentation of sustainability-related disclosures under empowerments Articles 2a, 4(6) and (7), 8(3), 9(5), 10(2) and 11(4) of Regulation (EU) 2019/2088 (hereinafter Sustainable Finance Disclosure Regulation “SFDR”)
Useful EU links
EU Emissions Trading System (EU ETS)
The EU emissions trading system (EU ETS) is a cornerstone of the EU's policy to combat climate change and its key tool for reducing greenhouse gas emissions cost-effectively. It is the world's first major carbon market and remains the biggest one.
The EU emissions trading system (EU ETS) is a cornerstone of the EU's policy to combat climate change and its key tool for reducing greenhouse gas emissions cost-effectively. It is the world's first major carbon market and remains the biggest one.