Sustainability Frameworks

March 2025 edition

Exclusive to “Master Slide Decks” subscribers

1. Which 3 stakeholders would be most interested in your organization’s sustainability report? Why?
2. What reporting framework would be the most appropriate and helpful for your organization to use? Why?
3. What 3 slides would you use to explain the difference between sustainability reporting and ESG disclosures?
4. How does double materiality relate to “ESG” and “sustainability” terminology?
5. What are the top 3 reasons that more organizations do not produce sustainability reports?
6. What are the top 3 reasons companies are increasingly producing sustainability / ESG reporting / disclosures?
7. What are 5 good reasons that the Basic Sustainability Assessment Tool (BSAT) is a good choice for SME sustainability reporting?

​

7 Learning Prompts - Use the deck as a self-study micro course on this topic.

Table of Contents

Sustainability Reporting �Status

Reporting Premises

What managers report shapes the way managers think.

Integrated reporting breeds integrated thinking

To change the game, change the scorecard

• What gets reported gets measured
• What gets measured gets managed
• What gets managed gets imbedded in executives’ mindsets

• NGOs / Scientists / Academics
• Governments
• Parents / Children

​

• Senior management
• Employees
• Customers / Buyers
• Investors / Bankers
• Insurers

Sustainability Reporting ‒ Who Cares?

Who Uses Sustainability Reports?

“Achieving Effective Internal Control Over Sustainability Reporting (ICSR),” Committee of Sponsoring Organizations of the Treadway Commission (COSO), March 2023.

Company Reporting

• Income/ P&L Statement ($)
• Balance Sheet ($)
• Management Discussion & Analysis (MD&A)

Annual Report

• Impacts on the environment
• Impacts on �communities / society
• Impacts on�employees

Sustainability /�ESG / CSR Report

• Financials
• Required
• For shareholders / investors

• Non-financials
• Voluntary
• For all stakeholders

Integrated Report

Global Reporting Trends – 2024

“Changing gears: How are companies navigating higher expectations and demands in sustainability reporting? Reporting matters 2024,” WBCSD, December 2024. Based on 181 reports by WBCSD members..

Global Reporting Trends – 2022

“Big Shifts, Small Steps: Survey of Sustainability Reporting 2022,” KPMG International, Octobers 2022.� Based on reporting by 5,800 companies in 58 countries .

Popular Reporting Frameworks

“Sustainability Reporting in Focus 2024,” G&A Institute, October 2024.

93% of Russell 1000 companies published sustainability disclosures in 2022. They used or referenced these frameworks:

• SASB: 81%
• TCFD: 60%
• SDGs: 56%
• GRI: 55%

48% used external� assurance.

Greenhushing on Earnings Calls

“Climate Talk on S&P 500 Earnings Calls Drops by Three-Quarters,” Bloombery, March 2025.�Based on an analysis of transcripts of S&P 500 company earnings calls going back to 2020, tracking mentions of more than a dozen terms including climate change, global warming, ESG, clean energy and green energy..

Companies are talking about the environment 76% less than they were three years ago. The largest drops were seen in the consumer discretionary and financial sectors.

“The State of ESG & Sustainability Reporting,” BARC, April 2023. Based on a survey of 283 people representing a variety of different roles in many industries and all size companies, with 71% of respondents in Europe.

ESG Reporting Drivers

“The State of ESG & Sustainability Reporting,” BARC, April 2023. Based on a survey of 283 people representing a variety of different roles in many industries and all size companies, with 71% of respondents in Europe.

ESG Reporting Inhibiters

Reporting: Drivers And Rewards

“The Sustainability Reporter: A deep dive into the challenges and benefits

of new corporate reporting processes,” Thomson Reuters Checkpoint white paper, March 2017.

“7 Sustainability Trends That Will Shape Business In 2023”, Accountability, July 2023.

Corporate Reporting

“7 Sustainability Trends That Will Shape Business In 2023”, Accountability, July 2023.

Corporate Reporting

The Trust Gap

Common Reporting Framework?

“Statement of Intent to Work Together Towards Comprehensive Corporate Reporting,” Joint statement by CDP, CDSB, GRI, IIRC and SASB, September 2020. * SASB and IIRC announced intent to merge into the Value Reporting Foundation, Nov 2020.

Five organizations announced a shared reporting vision:

• CDP
• Climate Disclosure Standards Board (CDSB),
• Global Reporting Initiative (GRI)
• International Integrated Reporting Council (IIRC)
• Sustainability Accounting Standards Board (SASB) 

�Shared vision �A common, comprehensive, standard framework to collect and report on�sustainability performance to various stakeholders.

Value Reporting Foundation*

Future Reporting Landscape?

Alan Willis, “Corporate Reporting: Quo Vadis? Paradigm Shifts Shaping the Future of Corporate Reporting: Purpose, Accountability, Value and Sustainability,” ThinkTWENTY20, April 2022. Nested dependencies graphics added by Bob Willard.

Popular �Sustainability Reporting Frameworks�

“The State of ESG & Sustainability Reporting,” BARC, April 2023. Based on a survey of 283 people representing a variety of different roles in many industries and all size companies, with 71% of respondents in Europe.

Popular Reporting Frameworks

Popular ESG Topics

“Achieving Effective Internal Control Over Sustainability Reporting (ICSR),” Committee of Sponsoring Organizations of the Treadway Commission (COSO), March 2023.

Corporate 2024 Sustainability Priorities

“5 Charts to Educate Your Sustainability Strategy in 2024,” Reuters, December 2023.

Sustainability Assessment Frameworks

Science–�based �goals

Baseline�year

Other�company

Company-�chosen�goals

Other�company

Company �performance �today

3^rd-Party Raters and Rankers

Reporting Frameworks�

BSAT

NZAAT

WEF Metrics

SASB

TCFD / TNFD

GRI

SDGs

<IR>

CK Global 100

B Corp BIA

CDP

EcoVadis

FFBB

ASAT

ISSB S1 & S2

CSRD / ESRS

UNRISD SDPIs

Generic business model for any organization / business

Environment

Society

Business

Goods & Services

Suppliers

Customers

Employees

Purpose & Governance

Materials, Supplies,�Energy, Water

An organization’s sustainability report describes its impacts on

• the environment,
• its employees, and
• communities / society,
• under the governance / oversight that ensures that it is fulfilling its purpose.

Mutual Accountability For Value Chain Impacts

Organ-ization

Upstream Supply Chain

End of �1^st life dispos-ition

Total Life Cycle / Value Chain

Downstream �Customer Chain

Tier 4 Suppliers:�Raw / virgin material extraction

Tier 3 Suppliers:�Raw material refining and processing

Tier 2 Suppliers: �Parts manufacturing & subassembly

Tier 1 Suppliers: �Final assembly, manufacturing, packaging

Impacts on the environment, on employees, and on society

Customer

PUMA Tier 1-4 Footprints

about.puma.com/en/sustainability/environment

PUMA EP&L Statement

In 2011, published the first ever �Environmental Profit and Loss (EP&L) Statement

�

Estimated that it had done $190M of damage to ecosystems in 2010

(72% of its profit that year)

about.puma.com/en/sustainability/environment

30

Framework �Comparisons

sustainabilityadvantage.com/frameworks/overview/

What impact topics / issues are common to all main sustainability reporting, standards, and rating frameworks?

Common Core Topics / Issues

sustainabilityadvantage.com/assessments/overview/

Core Issues Mapped To Impact Points

Wages

Concerns process

Health /wellbeing

Community impacts

Diversity & Inclusion

Employment terms

Lobbying

Taxes & Donations

Business ethics

Investments

Impacts on Environment

Impacts on Employees

Impacts on Society

Impacts on Environment

GHG emissions

Encroachment

Waste

Non-GHG emissions

Water

Energy

Procured �Goods & Services

Purpose & Governance

Governance – Why Boards Care About Net-Zero

1. Climate oversight is aligned with directors’ fiduciary duties
2. Access to capital depends on effective climate governance and disclosure
3. New mandatory climate disclosure regulation is coming
4. There are unprecedented opportunities in the global low-carbon transition
5. To attract talent, organizations must demonstrate climate action

Sarah Keyes, “Board Oversight Of Net Zero – A Long-term Imperative Or Passing Fad?” Chapter Zero Canada Bulletin: November 2022 Edition, Institute of Corporate Directors, Nov. 2022.

Tips to get started

• Educate the board on climate change
• Establish clear structures and accountabilities
• Issue a TCFD report

​

Sustainability Is Being Linked To Board Pay

• 78% of major global companies now integrate sustainability metrics into board-level pay packages.
• 88% align ESG targets in pay to material sustainability topics like emissions, workforce diversity, and safety.
• 37% include ESG metrics in both short- and long-term incentives, with EU firms leading in long-term integration.

“Incentivizing long-term value creation: Linking sustainability metrics to board members’ pay.” KPMG, GRI 2020-2021 study, April 2025.�Based on a global review of 375 large publicly listed companies.

Bob Willard, “The 21^st Century Sustainable Enterprise Force Field,” Sustainability Advantage, Feb. 2021.

“Purpose drives governance; Governance drives everything”

Sustainability Assessment Frameworks

Science–�based �goals

Baseline�year

Other�company

Company-�chosen�goals

Other�company

Company �performance �today

3^rd-Party Raters and Rankers

Reporting Frameworks�

BSAT

NZAAT

WEF Metrics

SASB

TCFD / TNFD

GRI

SDGs

<IR>

CK Global 100

B Corp BIA

CDP

EcoVadis

FFBB

ASAT

ISSB S1 & S2

CSRD / ESRS

UNRISD SDPIs

Global Reporting Initiative (GRI)

“Introducing the GRI Standards,” slide presentation on the GRI Standards website, October 2016.

Wages

Concerns process

Health /wellbeing

Community impacts

Diversity & Inclusion

Employment terms

Lobbying

Taxes & Donations

Business ethics

Investments

Impacts on Environment

Impacts on Employees

Impacts on Society

GHG emissions

Encroachment

Waste

Non-GHG emissions

Purpose & Governance

GRI Coverage of Core Issues

Impacts on Environment

Water

Energy

Procured �Goods & Services

Sustainability Assessment Frameworks

Science–�based �goals

Baseline�year

Other�company

Company-�chosen�goals

Other�company

Company �performance �today

3^rd-Party Raters and Rankers

Reporting Frameworks�

BSAT

NZAAT

WEF Metrics

SASB

TCFD / TNFD

GRI

SDGs

<IR>

CK Global 100

B Corp BIA

CDP

EcoVadis

FFBB

ASAT

ISSB S1 & S2

CSRD / ESRS

UNRISD SDPIs

Sustainable Development Goals (SDGs)

www.un.org/sustainabledevelopment/sustainable-development-goals

The SDG framework has 17 goals, 169 targets, and 247 indicators

Progress on the SDGs

“Sustainable Development Report 2023,” UN Sustainable Development Solutions Network (SDSN), June 2023.

Sustainability Clusters Of SDGs

Environmental Goals

Employee Goals

Community Goals

Social Goals

Wages

Concerns process

Health /wellbeing

Community impacts

Diversity & Inclusion

Employment terms

Lobbying

Taxes & Donations

Business ethics

Investments

Impacts on Environment

Impacts on Employees

Impacts on Society

Impacts on Environment

GHG emissions

Encroachment

Waste

Non-GHG emissions

Water

Energy

Procured�Goods & Services

Purpose & Governance

SDG Coverage of Core Issues

SDGs Are Referenced In GRI Reports

Three most popular SDGs

Three least popular SDGs

83% of GRI-reporting companies state support for SDGs

State Of Progress: Business Contributions To The SDGs,” GRI 2020-2021 study, January 2022

Commitment To SDGs By Corporations

“The State of Sustainable Business 2019,” BSR and GlobeScan, December 2019. Based on feedback from business leaders in 125 global companies.

Reporting On SDGs

“2019 SDG Survey,” Global Compact Network Canada, October 2019. Based on 505 responses from Canadian organizations: 44% private sector, 21% NGO sector, 8% public sector, 13% academia, 17% independent consultants.

Sustainability Assessment Frameworks

Science–�based �goals

Baseline�year

Other�company

Company-�chosen�goals

Other�company

Company �performance �today

3^rd-Party Raters and Rankers

Reporting Frameworks�

BSAT

NZAAT

WEF Metrics

SASB

TCFD / TNFD

GRI

SDGs

<IR>

CK Global 100

B Corp BIA

CDP

EcoVadis

FFBB

ASAT

ISSB S1 & S2

CSRD / ESRS

UNRISD SDPIs

<IR> Six Capitals

“International <IR> Framework,” International Integrated Reporting Council (IIRC), January 2021.

Nested Capitals

Natural Capital

Manufactured Capital

Financial �Capital

Social �Capital

Human�Capital

Based on www.forumforthefuture.org/project/five-capitals/overview

• Purpose and Stakeholders
• Governance
• Business Model
• Risks and Opportunities
• Strategy and Resources
• Performance�Financial and Non-financial
• Outlook
• Basis of Preparation

​

<IR> Content Elements

“The International <IR> Framework,” International Integrated Reporting Council (IIRC), December 2013.

Wages

Concerns process

Health /wellbeing

Community impacts

Diversity & Inclusion

Employment terms

Lobbying

Taxes & Donations

Business ethics

Investments

Impacts on Environment

Impacts on Employees

Impacts on Society

Impacts on Environment

GHG emissions

Encroachment

Waste

Non-GHG emissions

Water

Energy

Procured�Goods & Services

Purpose & Governance

Non-financial Capitals Coverage Of Core Issues

Natural capital

Human capital

Social Capital

Natural capital

Sustainability Assessment Frameworks

Science–�based �goals

Baseline�year

Other�company

Company-�chosen�goals

Other�company

Company �performance �today

3^rd-Party Raters and Rankers

Reporting Frameworks�

BSAT

NZAAT

WEF Metrics

SASB

TCFD / TNFD

GRI

SDGs

<IR>

CK Global 100

B Corp BIA

CDP

EcoVadis

FFBB

ASAT

ISSB S1 & S2

CSRD / ESRS

UNRISD SDPIs

Toward Common Metrics

• 21 Core metrics
• 34 Extended metrics� (value chain & impact metrics)

4 Pillars

“Measuring Stakeholder Capitalism: Towards Common Metrics and Consistent Reporting of Sustainable Value Creation,” WEF, September 2020.

Wages

Concerns process

Health /wellbeing

Community impacts

Diversity & Inclusion

Employment terms

Lobbying

Taxes & Donations

Business ethics

Investments

Impacts on Environment

Impacts on Employees

Impacts on Society

GHG emissions

Encroachment

Waste

Non-GHG emissions

Purpose & Governance

WEF Common Metrics Coverage of Core Issues

Impacts on Environment

Water

Energy

Procured�Goods & Services

Sustainability Assessment Frameworks

Science–�based �goals

Baseline�year

Other�company

Company-�chosen�goals

Other�company

Company �performance �today

3^rd-Party Raters and Rankers

Reporting Frameworks�

BSAT

NZAAT

WEF Metrics

SASB

TCFD / TNFD

GRI

SDGs

<IR>

CK Global 100

B Corp BIA

CDP

EcoVadis

FFBB

ASAT

ISSB S1 & S2

CSRD / ESRS

UNRISD SDPIs

SASB Materiality Map

Sustainability Accounting Standards Board (SASB) www.sasb.org/

Industry-specific guidance on the material sustainability issues for �77 industries in 11 sectors for mandatory Form 10-K SEC filings

ESG Issues

Sectors / Industries

Wages

Concerns process

Health /wellbeing

Community impacts

Diversity & Inclusion

Employment terms

Lobbying

Taxes & Donations

Business ethics

Investments

Impacts on Environment

Impacts on Employees

Impacts on Society

GHG emissions

Encroachment

Waste

Non-GHG emissions

Purpose & Governance

SASB Coverage of Core Issues

SASB selects which issues are “material” to industries in each sector

Impacts on Environment

Water

Energy

Procured�Goods & Services

Double Materiality

“Inside-out” Impacts

Environment

Society

Business

Boomerang “Outside-in” Impacts

Environment

Society

Business

“Inside-out” Impacts

“Outside-in” Impacts

Sustainability reporting�e.g., GRI, SDGs, BSAT, etc.

ESG disclosures�e.g., TCFD, ISSB S1 & S2

“Sustainability vs. ESG,” Sustainability Advantage blog, February 2022.�“ESRS Quick Reference Guide,” G&S, March 2024.

Double Materiality

CSRD

TCFD / TNFD, ISSB S1 & S2, CSRD / ESRS, UNRISD SDPI

Sustainability Assessment Frameworks

Science–�based �goals

Baseline�year

Other�company

Company-�chosen�goals

Other�company

Company �performance �today

3^rd-Party Raters and Rankers

Reporting Frameworks�

BSAT

NZAAT

WEF Metrics

SASB

TCFD / TNFD

GRI

SDGs

<IR>

CK Global 100

B Corp BIA

CDP

EcoVadis

FFBB

ASAT

ISSB S1 & S2

CSRD / ESRS

UNRISD SDPIs

“Firms ignoring climate crisis will go bankrupt, says Mark Carney,” The Guardian, October 2019. �As of August 2020, Mark Carney is the UN special envoy for climate action and finance, �and vice chair and head of ESG and impact fund investing at Brookfield Asset Management.

“Up to $20tn of assets could be wiped out if the climate emergency is not addressed effectively.” 

TCFD

Task Force of Climate-related Financial Disclosures (TCFD) (fsb-tcfd.org)

• Recommends voluntary climate-related financial disclosures that provide decision-useful information to lenders, insurers, and investors so they can evaluate their risks and exposures over the short, medium, and long-term.
• 2,600+ government and financial institution supporters in 89 countries
• 4 Themes: Strategy, Governance, Risk management, Metrics
• Want to know how climate change-related physical and transition risks and opportunities will impact financial statements.

TCFD Recommendations

Task Force of Climate-related Financial Disclosures (fsb-tcfd.org)

TCFD Co-benefits

“The ESG premium: New perspectives on value and performance,” McKinsey & Company, February 2020. �Based on a July 2019 online survey of 439 C-suite executives and 119 investment professionals.

TCFD-recommended Financial Disclosures

sustainabilityadvantage.com/assessments/ficc/

Climate Change Impacts and Challenges in Different Regions Across Canada, National Adaptation Strategy, 2023.

Chronic Risks

Financial Impacts of Climate Form (FICF)

Financial Impacts of Climate Calculator (FICC)

sustainabilityadvantage.com/assessments/ficc/

TCFD Reporting Tools

Financial Impacts Of Climate Estimators

sustainabilityadvantage.com/assessments/ficc/

Purpose & Governance

TCFD Coverage Of Core Issues

Energy

GHG emissions

Impacts on Environment

Impacts on Employees

Impacts on Society

Impacts on Environment

TCFD Reporting Status

“Task Force of Climate-related Financial Disclosures (TCFD) 2023 Status Report,” TCFD, October 2023.

• Only 58% of public companies disclosed TCFD-aligned information on at least �5 of the 11 recommended disclosures.
• Only 4% disclosed all 11
• Only 24% disclosed climate-related financial information in financial filings (rather than sustainability and annual reports) �i.e., climate-related risks or opportunities, board oversight, and climate-related targets

CANADIAN TCFD EFFORTS

1. Issuers will not be required to disclose scenario analysis, including a 2°C or lower scenario.

2. Issuers may disclose their GHG emissions, or explain why they have not done so.

3. It is not anticipated that the Proposed Instrument will come into force prior to Dec. 31, 2022.

Proposed SEC Disclosures

• Requires TCFD-recommended disclosures �by companies listed on U.S. stock exchanges
• Requires audited disclosures related to Scope 1 and 2 emissions, �and must disclose plan to meet GHG reduction targets.
• Must disclose Scope 3 emissions if they are “material” to investors, or if they’re included in their targets. Material Scope 3-related disclosures only for largest firms, with “safe harbor” for Scope 3 emissions reporting
• Must disclose use of offsets and RECs to meet targets
• 60-day comment period; Republican state officials challenging SEC “overreach”

SEC Proposes Rules to Enhance and Standardize Climate-Related Disclosures for Investors,” SEC Press Release, March 21, 2022.

Based on “A Comparative Analysis of U.S. (SEC) and Canadian (CSA) Climate Disclosure Proposals,” ESG Global Advisors, June 2022.

SEC & CSA�Climate �Disclosure �Proposals

Task Force on Nature Related Financial Disclosures (TNFD)

“No Planet B: A New Framework Aims to Recognize the Role of Nature in Business Decisions,” S&P Global, March 2022.

Impacts on Environment

Impacts on Employees

Impacts on Society

Encroachment

Waste

Non-GHG emissions

Purpose & Governance

TNFD Coverage of Core Issues

Impacts on Environment

Water

Energy

Based on “WBCSD’s TNFD Pilot,” WBCSD, September 2023.

Sustainability Assessment Frameworks

Science–�based �goals

Baseline�year

Other�company

Company-�chosen�goals

Other�company

Company �performance �today

3^rd-Party Raters and Rankers

Reporting Frameworks�

BSAT

NZAAT

WEF Metrics

SASB

TCFD / TNFD

GRI

SDGs

<IR>

CK Global 100

B Corp BIA

CDP

EcoVadis

FFBB

ASAT

ISSB S1 & S2

CSRD / ESRS

UNRISD SDPIs

ISSB IFRS S1: Sustainability Disclosure Standard

International Sustainability Standards Board (ISSB) International Financial Reporting Standards (IFRS)

• Objective: Require an entity to fairly disclose material information about its sustainability-related risks and opportunities (SRO) that could reasonably be expected to affect the entity’s prospects in the sort, medium, and long term. This is useful information to primary users when making decisions relating to providing resources to the entity. Starts in 2024 reporting period.
• Core content:
• Governance—the governance processes, controls and procedures the entity uses to monitor and manage SRO
• Strategy—the approach the entity uses to manage SRO
• Risk management—the processes the entity uses to identify, assess, prioritise and monitor SRO
• Metrics and targets—the entity’s performance in relation to SRO

“IFRS S1: IFRS Sustainability Disclosure Standard,” International Sustainability Standards Board (ISSB), June 2023.

ISSB IFRS S2: Climate Disclosure Standard

International Sustainability Standards Board (ISSB) International Financial Reporting Standards (IFRS)

• Objective: Require an entity to fairly disclose material information about its climate-related risks and opportunities (CRO) that could reasonably be expected to affect the entity’s prospects in the sort, medium, and long term. This is useful information to primary users when making decisions relating to providing resources to the entity. Starts in 2024 reporting period.
• Core content:
• Governance—the governance processes, controls and procedures the entity uses to monitor and manage CRO
• Strategy—the approach the entity uses to manage CRO
• Risk management—the processes the entity uses to identify, assess, prioritise and monitor CRO
• Metrics and targets—the entity’s performance in relation to CRO

“IFRS S2: IFRS Climate-related Disclosure Standard,” International Sustainability Standards Board (ISSB), June 2023.

Sustainability Assessment Frameworks

Science–�based �goals

Baseline�year

Other�company

Company-�chosen�goals

Other�company

Company �performance �today

3^rd-Party Raters and Rankers

Reporting Frameworks�

BSAT

NZAAT

WEF Metrics

SASB

TCFD / TNFD

GRI

SDGs

<IR>

CK Global 100

B Corp BIA

CDP

EcoVadis

FFBB

ASAT

ISSB S1 & S2

CSRD / ESRS

UNRISD SDPIs

EU Reporting: CSDDD, CSRD, ESRS

• Corporate Sustainability Due Diligence Directive (CSDDD)�Requires companies to take responsibility for their environmental �and social impacts, as well as those of their suppliers. �Effective July 2026. Phased in for EU and non-EU entities 2027-2029,
• Corporate Sustainability Reporting Directive (CSRD)�Requires that companies disclose sustainability issues from a "double materiality" perspective. Replaces the Non-Financial Reporting Directive (NFRD)�Effective 2024-2028, depending on company size.
• European Sustainability Reporting Standards (ESRS)�Establishes guidelines on what companies should include in their sustainability reports, including on climate change, water and resource management, biodiversity, human rights, labor practices, diversity and anti-corruption measures. Introduces the concept of double materiality, and expands a company’s reporting boundary to its entire value chain. Effective 2024-2026, depending on company size.

“CSRD, CSDDD, ESRS and more: A cheat sheet of EU sustainability regulations,” GreenBiz Two Steps Forward blog, June 2023.�“ESRS Quick Reference Guide,” G&S, March 2024.

EU Corporate Sustainability �Reporting Directive (CSRD)

• Applies to companies with 40M € in net revenue, 20M € in assets, or 250+ employees, and some non-EU companies with substantial activity in the EU
• Companies required to use the European Sustainability Reporting Standards (ESRS) to report on their and their supply chain’s …
• Environmental protection
• Social responsibility and �treatment of employees
• Respect for human rights
• Anti-corruption and bribery
• Diversity on company boards �(age, gender, educational and professional background)
• Country by country reporting on taxes

“Non-Financial Reporting” webpage, European Union. Replaces the 2014 Non-financial Reporting Directive (NFRD)

1. Climate change mitigation
2. Climate change adaptation
3. Water
4. Circular economy
5. Pollution
6. Ecosystems

EU Corporate Sustainability Due Diligence Directive (CSDDD)

“EU Parliament Votes to Require Companies to Introduce Climate Transition Plans,” ESG Today, June 2023.

• Applies to companies with >1,000 employees, and > €50 M in annual revenues
• Later, applies to companies with >250 employees, and > €40 M annual revenues.
• Applies to non-EU companies with annual revenues earned in the EU above these thresholds.

Companies must integrate due diligence into policies and strategies, �identify actual or potential adverse human rights and environmental impacts, and �end or minimize actual impacts in company operations, subsidiaries and supply chains.

• Companies must implement climate transition plans aligned with the Paris Agreement
• Sanctions if fail to produce a CSRD report: Fines as high as 5% of the company’s global revenues, or bans from public procurement in the EU. In France, fine of up to $81,400 (75,000 euros) and jail time of up to 5 years for directors.

EU Omnibus Proposal “Simplifies” CSRD reporting

“EU to Exempt 80% of Companies from CSRD Sustainability Reporting Requirements,” ESG Today, Feb. 2025.�Note that member states that have already adopted CSRD are not directly impacted.

1. Fewer companies required to report�Removing about 80% of companies from the scope of the CSRD, focusing �only on companies with over 1,000 employees (vs. 250) and their Tier 1 �suppliers. CBAM would only apply to importers of >50 tonnes / year.
2. Delayed Reporting Deadlines�Postponing reporting requirements by two years: from 2026 to 2028.
3. Simplified European Sustainability Reporting Standards (ESRS)�Sector-specific ESRS requirements have been eliminated. �Now a single streamlined set of rules instead of different standards per sector.   
4. Revisions to key performance indicators (KPIs) �Prioritize essential pollution disclosures. Fewer data points and clearer rules for reporting. 
5. No shift to double materiality assessment
6. No shift to “reasonable assurance” that positively states all the answers are correct�Can use ”limited assurance” that does not check all the answers, and negatively states have not found evidence of misstated answers.

“G&A European Sustainability Reporting Standards (ESRS) Quick Reference,” Governance & Accountability (G&A) Institute, March 2024.

CSRD ESRS Quick Reference

“G&A European Sustainability Reporting Standards (ESRS) Quick Reference,” Governance & Accountability (G&A) Institute, March 2024.

CSRD – Environmental ESRS

“G&A European Sustainability Reporting Standards (ESRS) Quick Reference,” Governance & Accountability (G&A) Institute, March 2024.

CSRD – Social ESRS

Wages

Concerns process

Health /wellbeing

Community impacts

Diversity & Inclusion

Employment terms

Lobbying

Taxes & Donations

Business ethics

Investments

Impacts on Environment

Impacts on Employees

Impacts on Society

GHG emissions

Encroachment

Waste

Non-GHG emissions

Purpose & Governance

CSRD / ESRS Coverage of Core Issues

Impacts on Environment

Water

Energy

Procured�Goods & Services

Sustainability Assessment Frameworks

Science–�based �goals

Baseline�year

Other�company

Company-�chosen�goals

Other�company

Company �performance �today

3^rd-Party Raters and Rankers

Reporting Frameworks�

BSAT

NZAAT

WEF Metrics

SASB

TCFD / TNFD

GRI

SDGs

<IR>

CK Global 100

B Corp BIA

CDP

EcoVadis

FFBB

ASAT

ISSB S1 & S2

CSRD / ESRS

UNRISD SDPIs

UNRISD Sustainable Development Performance Indicators (SDPIs)

sdpi.unrisd.org/

• Free, online tool
• Assesses impacts / performance against norms and thresholds based on historical precedent, international agreements, and scientific evidence that indicate a target consistent with the notion of sustainable development.
• Covers socioeconomic, governance and environmental areas.
• Produces an automatically generated report that features trend analysis and allows users to assess impacts or performance in relation to sustainability norms and thresholds.

​

UNRISD SDPI

• Sustainable Development Performance Indicators (SDPI)
• Produced by UNRISD (United Nations Research Institute for Social Development), with help from Mark McElroy, Bill Baue, Ralph Thurm, and others.
• Online tool
• Allows users to assess impacts or performance �in relation to historical precedent, international �agreements, and scientific thresholds� (i.e., context-based)
• Includes significant economic analysis
• Produces an automatically generated report, with trend analyses

https://sdpi.unrisd.org/

Wages

Concerns process

Health /wellbeing

Community impacts

Diversity & Inclusion

Employment terms

Lobbying

Taxes & Donations

Business ethics

Investments

Impacts on Environment

Impacts on Employees

Impacts on Society

GHG emissions

Encroachment

Waste

Non-GHG emissions

Purpose & Governance

UNRISD SDPI Coverage of Core Issues

Impacts on Environment

Water

Energy

Procured�Goods & Services

Future-Fit Business Benchmark (FFBB) �&

Advanced Sustainability Assessment Tool (ASAT)

Sustainability Assessment Frameworks

Science–�based �goals

Baseline�year

Other�company

Company-�chosen�goals

Other�company

Company �performance �today

3^rd-Party Raters and Rankers

Reporting Frameworks�

BSAT

NZAAT

WEF Metrics

SASB

TCFD / TNFD

GRI

SDGs

<IR>

CK Global 100

B Corp BIA

CDP

EcoVadis

FFBB

ASAT

ISSB S1 & S2

CSRD / ESRS

UNRISD SDPIs

How would we recognize a truly sustainable, future-fit business if we ever found one?

How can we measure how far away �any company is from where it needs to be?

“Mirror, mirror …”

Two Questions

Truly Sustainable / Future-Fit Business

If it were to operate forever, it would not only do no harm, �it could do well while doing some net good.

A Future-Fit Business creates value �while in no way undermining �– and ideally increasing – �the possibility that humans and other life will flourish on Earth forever. 

Future-Fit Business Benchmark (FFBB) at https://futurefitbusiness.org/

Wages

Concerns process

Health /wellbeing

Community impacts

Diversity & Inclusion

Employment terms

Lobbying

Taxes & Donations

Business ethics

Investments

Impacts on Environment

Impacts on Employees

Impacts on Society

GHG emissions

Encroachment

Waste

Non-GHG emissions

Purpose & Governance

FFBB Coverage of Core Issues

Impacts on Environment

Water

Energy

Procured �Goods & Services

FFBB Break-Even / Cause-No-Harm Goals

sustainabilityadvantage.com/assessments/asat/

Positive Pursuits

Future-Fit Business Benchmark: Positive Pursuits Guide, August 2019.

sustainabilityadvantage.com/assessments/asat/

FFBB Positive Pursuits

Positive Pursuits Impact Factors

Based on Future-Fit Business Benchmark v2.1, April 2019.

Advanced Sustainability Assessment Tool (ASAT)

• Free, open-source Excel workbook … tailorable
• For large, multinational corporations
• Based on the Future-Fit Business Benchmark (FFBB)
• Scores on all core ESG issues, �all SDGs and all non-financial capitals
• Assesses progress toward science-based goals
• Uses Positive Pursuits to assess positive impacts
• Educational … suggests ways to improve scores

https://sustainabilityadvantage.com/assessments/asat/

Basic Sustainability Assessment Tool (BSAT)�and�Net-Zero Ambition Assessment Tool (NZAAT)

Sustainability Assessment Frameworks

Science–�based �goals

Baseline�year

Other�company

Company-�chosen�goals

Other�company

Company �performance �today

3^rd-Party Raters and Rankers

Reporting Frameworks�

BSAT

NZAAT

WEF Metrics

SASB

TCFD / TNFD

GRI

SDGs

<IR>

CK Global 100

B Corp BIA

CDP

EcoVadis

FFBB

ASAT

ISSB S1 & S2

CSRD / ESRS

UNRISD SDPIs

107

Framework �Comparisons

sustainabilityadvantage.com/frameworks/overview/

What impact topics / issues are common to all main sustainability reporting, standards, and rating frameworks?

Common Core Topics / Issues

sustainabilityadvantage.com/assessments/overview/

Challenges With Most Assessment Frameworks

• How much is enough? … how close are we to science-based cause-no-harm goals for all topics?
• Not scored … difficult to compare companies
• No credit for doing good … helping others; being restorative
• Unrelated to SDGs … how do impacts relate to contributions to the SDGs?
• Not SME-friendly … 100s of questions

Most companies in Canada are SMEs

SMEs employ 63.7% of the total Canadian labor force.

• Large (> 500 employees): 0.3%
• Medium (100-500 employees): 1.5%
• Small (< 100 employees): 98.1%

“Key Small Business Statistics,” Innovation, Science and Economic Development Canada, Small Business Branch, 2025.

As of December 2023, there were 1.1 million employer businesses in Canada

Most American companies are SMBs

• Large (> 500 employees): 0.3%
• Medium (100-500 employees): 1.6%
• Small (< 100 employees): 98.1%

• Large (> 250 employees) 0.2-0.3%
• SME (1-249 employees) 99%
• Small (1-49 employees) 95-98%�

Most companies in the EU are SMEs

113

sustainabilityadvantage.com/assessments/bsat/

Basic Sustainability Assessment Tool (BSAT)

• SME-friendly … ~30 multiple-choice Qs; ~30 data/percentage Qs
• Comprehensive … scores on all core sustainability issues
• Generic / Comparable … any size, any sector, anywhere
• Scorable … yields a % score; use for ranking or preferential treatment
• Science-based goals … assesses % progress toward all of them
• Educational … real-time feedback on how answers affect scores
• Scores on SDGs & non-financial capitals (Natural, Human, Social)
• Bonuses for positive Impacts … helping others; products & donations
• Free, open-source Excel tool … can tailor / translate / weight scores /� change scoring / create online app

Wages

Health /wellbeing

• Community building
• Community concerns process
• Customer concerns process
• Ethical taxes
• Ethical lobbying
• Ethical investments

Diversity & Inclusion

Employment terms� Concerns process

Impacts on Environment

Impacts on Employees

Impacts on Society

GHG emissions

Encroachment

Waste & Circularity

Non-GHG emissions

Purpose & Governance

BSAT Coverage of Core Sustainability Issues

Impacts on Environment

Water

Energy

Procured�Goods & Services

Community

Employees

Environment

Wages

Energy

Procured products

Encroachment

Wellbeing

Diversity & Inclusion

Employment terms

Water

42%

83%

80%

30%

73%

67%

63%

Governance

63%

• Community building
• Community concerns
• Customer concerns

• Ethical taxes
• Ethical lobbying
• Ethical investments

79%

GHG emissions�(Scope 1, 2, & 3)

Waste & Circularity

Non-GHG emissions

54%

66%

69%

70%

Positive Impacts

9%

OVERALL SCORE

65%

• Scores are % progress toward science-based do-no-harm goals for core sustainability issues
• Bonuses for positive impacts

Basic Sustainability �Assessment Tool (BSAT) �Sample Scores

sustainabilityadvantage.com/assessments/bsat/

116

Positive Impacts

Helping others reduce their negative impacts on the environment

i.e. emit fewer GHGs, use less water, pollute less, etc.

Helping others’ wellbeing�i.e., meet their basic needs, be healthier, be self-supportive and informed

Equivalent % of income helping others, directly or indirectly

• % of income from products that help our customers in these ways.
• % income represented by value of products that we make available pro bono, or at reduced rates, to underserved /disadvantaged peoples.
• % income represented by value of our in-kind and monetary donations to other organizations that create positive impacts in these ways.

BSAT 🡪 SDGs & Non-financial Capitals

1. Scores on core ESG issues� (20 questions on 18 core issues)
2. Scores on SDGs
3. Scores on non-financial capitals (Natural, Human, Social)

(Proxies)

(Proxies)

BSAT is the “Rosetta Stone”� of sustainability assessments

sustainabilityadvantage.com/assessments/bsat/

Sample Scores on SDGs

Score is % progress toward not working against / interfering with that SDG

… are used as proxies for scores on aligned, primary SDGs

Scores on core sustainability issues …

Environment-related SDGs

Employee-related SDGs

Community / Society-related SDGs

52%

65%

64%

71%

71%

71%

71%

71%

58%

64%

64%

58%

71%

65%

72%

72%

71%

Positive Impacts

9%

OVERALL SCORE

76%

Score is % progress toward not devaluing that capital

Sample Scores On Non-financial Capitals

Scores on core sustainability issues …

… are used as proxies for scores �on aligned non-financial capitals

Natural capital

Human capital

Social capital

Positive Impacts

9%

OVERALL SCORE

75%

62%

71%

64%

Bill C-59: Canada’s Anti-Greenwashing Law

Bill C-59 amends Canada’s Competition Act to introduce anti-greenwashing provisions that aim to enhance the accountability of businesses making environmental and social claims. (Passed June 2024)

• “Greenwashing” claim: Unsubstantiated, false, or misleading public claims about the benefits of a product, business, or business activity related to protecting or restoring the environment, or mitigating the environmental, ecological, and social causes or effects of climate change.
• Significant financial penalties: Potential fines of up to $10 million for a first offense and $15 million for subsequent offenses, or 3% of a corporation's annual global revenue, whichever is greater.

“Bill C-59: Balancing green goals with economic risks,” KPMG, October 2024.

Verification / Assurance Considerations

1. Who
• Internal officer / director / CFO?
• External 3^rd party, and who pays for this?
2. When
• When the questionnaire is submitted, each time?
• Random spot checks, later?
• At contract time? Required to publicly communicate results and plans?
3. What
• Appropriate backup evidence has been submitted for all questions?
• Appropriate sources and methods were used?
• Appropriate sources, methods and primary data were used in calculations?
• Confirmation that planned actions / scenarios can lead to stated targets / results?
4. Level of assurance
• “Limited assurance:” checks some answers, and finds no evidence of misstatement?
• “Reasonable assurance:” positively states all the answers are free from material misstatement?

ISSA 5000

ISSA 5000 is the International Auditing and Assurance Standards Board (IAASB) dedicated global standard for sustainability assurance.

• Applies to accounting and non-accounting assurance practitioners
• Covers both Limited Assurance and Reasonable Assurance

“ISSA 5000 General Requirements for Sustainability Assurance Engagements,” IAASB, November 2024.

BSAT Verification / Assurance Approach

1. Confirmation of internal and/or external assurance: The Organization Profile requests the name, title and email of 1) the organization officer / director (preferably the CFO) who vouches for the integrity of the answers, and of 2) a qualified 3rd party that has verified / assured the sources and methods used in the answers.
2. Verification warnings: Each topic has a “Links to evidence for verification purposes” box at the end which requests URLs/links to publicly available evidence / information / reports that support the answers in that section. This sends a message.
3. Overall score deductions: The overall score is 1) reduced by 10% if the answers are not vouched for by the CFO or other company officer (see #1) and 2) reduced by another 10% if the sources and methods used in the answers have not been verified / assured by a qualified 3^rd party (see #1).
4. 3^rd party verification at contract time: The winning supplier’s BSAT score is verified / assured by a qualified third party, if that assurance has not already been done. The contract is terminated if the verified score is >10% lower than initially submitted.

These approaches help assure the integrity of responses to BSAT.

ESG Assurance Activities

Some usual assurance measures may be appropriate.

Excerpt from a slide used in a Verdantix webinar, “The EU Omnibus Shake-Up,” March 2025.

Sustainability Assessment Frameworks

Science–�based �goals

Baseline�year

Other�company

Company-�chosen�goals

Other�company

Company �performance �today

3^rd-Party Raters and Rankers

Reporting Frameworks�

BSAT

NZAAT

WEF Metrics

SASB

TCFD / TNFD

GRI

SDGs

<IR>

CK Global 100

B Corp BIA

CDP

EcoVadis

FFBB

ASAT

ISSB S1 & S2

CSRD / ESRS

UNRISD SDPIs

1. Reduce GHGs 50% by 2030
2. Reduce GHGs 100% by 2050
3. Beyond value chain mitigation
4. Neutralization of last 5-10% / residual emissions

Based on “SBTi Net-Zero Standard,” Science-Based Targets, October 2021..

Science-based Net-Zero Standard

Despite Everything, Climate / GHG Reporting Lives

• 75% of executives who do not need to comply with CSRD still intend to at least partially align their reporting with CSRD.
• 81% of executives expect to at least partially disclose scope 1 and 2 emissions with some level of assurance, despite uncertainty around the SEC climate rule.
• 77% of executives say that their approach to sustainability reporting remains unchanged.

“Executive Benchmark on Integrated Reporting,” Workiva, February 2025.�Based on polling of 1,601 executives as well as 222 institutional investors. Respondents included executives, the C-Suite,

and VP/SVPs from organizations across North America, South America, Europe, and Asia.

Design Criteria for Net-Zero Disclosure Tool

• Generic / Comparable … any organization, any sector, any size, anywhere
• Comprehensive … based on typical questions asked by other questionnaires that assess a company’s commitment to net-zero targets for Scopes 1, 2, 3.
• Scorable … produces a score out of 100%; used to determine points earned
• SME-friendly … few questions; multiple-choice; few quantifications required
• Educational … checklist of how to improve score; helpful explanations; suggests actions to take to reduce GHGs
• Bonuses … credit for helping reduce others’ / global GHGs
• Verifiable … clear, specific, and objective
• Accessible … free, user friendly, open-source, tailorable

Scores organization's commitment to science-based net-zero targets.

129

Net-Zero Questionnaire Sources

What topics / questions are common to mainstream net-zero reporting frameworks, standards, and questionnaires?

sustainabilityadvantage.com/assessments/nzat/

Common Net-Zero Question Topics

sustainabilityadvantage.com/assessments/nzat/

Circular Economy 🡪 Lower GHG emissions

Based on a figure in “Assessment Shows Service-based Models Deliver Positive Environmental Impact,” HP, 2020.

Repair and upgrade products

Prefer access-over-ownership option

Buy used / refurbished products

Buy products with recycled content

Repairing and refurbishing products can �cut global GHG emissions by 39%

Avoids resource extraction and production of new goods, which are responsible for 45% of global GHG emissions.

Net-Zero Ambition Assessment Tool (NZAAT)

sustainabilityadvantage.com/assessments/nzat/

• Generic / Comparable
• Comprehensive
• Scorable 
• SME-friendly 
• Educational 
• Verifiable 
• Accessible

+ Bonuses for helping others,� removing GHGs, using NZP� + Incentivizes short-term action

Meets design criteria for SME disclosure tool.

Sample scores

+ Bonus for helping others’ reduce their �GHGs, removing GHGs, and/or using NZCP

3%

Governance commitment to net-zero

36%

OVERALL SCORE

62%

Environment

Commitment to net-zero targets� for Scope 1 emissions

82%

Commitment to net-zero targets �for Scope 2 emissions

63%

Commitment to net-zero targets �for Scope 3 emissions

54%

Commitment to circularity

54%

Net-Zero Ambition Assessment Tool (NZAAT)

• All suppliers voluntarily disclose their commitment to science-based net-zero targets & circularity.
• Bonus points if the supplier uses NZP with their suppliers, or if their products and services help others reduce their GHGs.
• The scores become part of the supplier’s profile and can be updated at any time.
• Includes over 30 ways to reduce GHGs

https://sustainabilityadvantage.com/assessments/nzat/