ISO launches Principles for ESG Performance and Reporting
ISO launches Principles for ESG Performance and Reporting
The International Organization for Standardization (ISO) launched the ISO ESG Implementation Principles, a new set of guidance aimed at enabling companies to improve ESG integration, performance, measurement and reporting.
The new principles were released as a result of companies facing increasing ESG scrutiny and a substantial increase in ESG regulations, including the EU’s CSRD, the UK’s Modern Slavery Act, and the ISSB’s IFRS S1 and S2 disclosure requirements. This while sustainability reporting continues to suffer from inconsistencies and variations across different jurisdictions, company sizes and sectors. This guidance aims enable more consistent reporting. The principles are applicable to organizations ranging from small businesses to multinational corporations, as well as ESG consultants, academia, research institutions, and NGOs.
The principles are designed to support effective and transparent sustainability practices through a standardised structure which provides organisations with all the information needed to achieve their ESG ambitions, regardless of where they are on their journey. The new principles are designed to support management of ESG performance, improve measurement and reporting under existing disclosure frameworks to enable consistency, comparability, and reliability of ESG reporting and practices globally, facilitate interoperability by aligning with existing reporting standards, and promote global consistency, to enable clear communication of sustainability efforts. The guidance aims to provide a structure to help organizations integrate existing ESG requirements, establish KPIs, and assess maturity in their ESG practices.
ISO’s ESG implementation principles are aiming foster a lasting culture of ESG that will bring real value to organisations, governments, investors, and consumers. The guidelines aim also to help accelerate the adoption of sustainable business practices, which benefits diverse communities and the environment. The principles were developed in collaboration with national standards bodies, including the British Standards Institution (BSI), the Standards Council of Canada (SCC), and the Brazilian Association of Technical Standards (ABNT), and incorporate input from more than 1,900 industry experts globally.
The release of these Implementation Principles will help organisations of all types embed ESG in a measurable and consistent way. They will also help society drive real change in areas including emissions, biodiversity protection, mobilizing green investments and fostering inclusivity, and ultimately accelerate progress towards a fair society and sustainable world.