ISO has announced new ESG implementation principles.
The principles are a set of guidelines aimed at enhancing ESG integration, performance, measurement, and reporting in businesses worldwide.
The organization has released the new principles amid increasing ESG scrutiny and regulations like EU’s CSRD, UK’s Modern Slavery Act, and ISSB’s IFRS S1 and S2 disclosure requirements.
According to ISO, sustainability reporting is facing challenges due to inconsistencies and variations across various jurisdictions, company sizes, and sectors.
According to ISO, the guidelines apply to both small and large companies, as well as to academic institutions, research centers, NGOs, and ESG consultants.
They will give organizations a framework for integrating current ESG requirements, setting up KPIs, and evaluating the maturity of their
ESG practices.
ISO said that the new principles will improve ESG reporting, enhance measurement, facilitate interoperability, and promote global consistency, enhancing sustainability communication and performance management.
The goal is to promote interoperability by ensuring compliance with current reporting standards and promoting global consistency in the communication of sustainability initiatives.
Sergio Mujica, Secretary-General, ISO, said, “ISO’s ESG implementation principles will foster a lasting culture of ESG that will bring real value to organizations, governments, investors, and consumers. These guidelines will help accelerate the adoption of sustainable business practices, which benefits diverse communities and the environment.”
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