Understanding and adhering to various reporting standards for greenhouse gas (GHG) emissions is essential for companies to effectively disclose their environmental impact. This page introduces four major reporting frameworks: TCFD, SASB Sustainability Standards, GRI Standards, and IFRS Sustainability Standards.

TCFD (Task Force on Climate-related Financial Disclosures)

TCFD is a voluntary reporting framework that focuses on climate-related financial disclosures. It helps companies communicate how climate change may affect their financial performance and stability. TCFD is specifically focused on climate-related risks and opportunities, helping companies disclose how climate change may impact their financial performance, risk management, and strategic planning. The TCFD recommendations cover four areas: governance, strategy, risk management, and metrics/targets. This framework helps companies consistently communicate their climate-related risks and opportunities to investors.

SASB Sustainability Standards (Sustainability Accounting Standards Board)

The key element in SASB Standards is the focus on financially material sustainability issues specific to each industry. SASB identifies the most critical environmental, social, and governance (ESG) topics that can affect a company's financial performance within its industry and provides standardized metrics for disclosure. This approach enables companies to report on sustainability factors that are directly relevant to their operations and of interest to investors, ensuring that the disclosed information is consistent, comparable, and decision-useful for investment decision-making processes. By adopting SASB Standards, organizations can communicate their sustainability performance in a consistent, comparable, and decision-useful manner, enabling investors to better assess and integrate ESG factors into their investment decisions. Ultimately, the SASB Standards promote greater transparency and encourage the integration of sustainability considerations into corporate strategies and investor analyses.

GRI Standards (Global Reporting Initiative)

The Global Reporting Initiative (GRI) is an international, independent organization that develops and promotes a widely used set of sustainability reporting standards. These standards provide a comprehensive framework for companies to measure and disclose their environmental, social, and economic performance, including greenhouse gas emissions. By following GRI Standards, organizations can showcase their commitment to sustainability, enhance transparency, and facilitate communication with stakeholders. The GRI Standards enable companies to compare their sustainability performance with peers and track progress over time, ultimately contributing to better decision-making and a more sustainable global economy.

IFRS Sustainability Standards (International Financial Reporting Standards)

IFRS Sustainability Standards, currently under development by the International Sustainability Standards Board (ISSB), aim to provide a global baseline for company-level sustainability reporting. The standards will cover a range of ESG topics, including climate-related risks and GHG emissions. Once established, IFRS Sustainability Standards will help harmonize reporting practices and provide investors with consistent, comparable, and decision-useful information.

In conclusion, these four reporting frameworks—TCFD, SASB Sustainability Standards, GRI Standards, and IFRS Sustainability Standards—offer different approaches for companies to disclose their GHG emissions and other sustainability-related information. By understanding and adopting these standards, companies can enhance their transparency, meet stakeholder expectations, and contribute to a more sustainable future.