ESG Reporting Frameworks Compared
A practical comparison of GRI, ISSB, TCFD, CSRD, and other major ESG reporting frameworks to help you choose the right one.
Overview of the Reporting Landscape
The ESG reporting landscape has undergone rapid consolidation since 2020. What was once a fragmented ecosystem of dozens of voluntary frameworks is converging toward a smaller set of globally recognised standards. The International Sustainability Standards Board (ISSB), established in 2021 under the IFRS Foundation, is emerging as the global baseline for investor-focused sustainability disclosure. Meanwhile, regional mandates like the EU's CSRD are creating legally binding requirements. Organisations now face the challenge of selecting frameworks that meet both regulatory obligations and stakeholder expectations.
GRI Explained
The Global Reporting Initiative (GRI) is the world's most widely used sustainability reporting standard, applied by over 10,000 organisations across 100+ countries. GRI takes a double materiality approach, meaning it requires companies to report on both how sustainability issues affect the business and how the business affects people and the environment. GRI Standards are modular and can be used by any organisation regardless of size, sector, or geography. The latest GRI Universal Standards (2021) strengthened requirements around due diligence, stakeholder engagement, and human rights reporting.
SASB and ISSB Explained
The Sustainability Accounting Standards Board (SASB) was designed to provide industry-specific, financially material ESG disclosure standards for investors. In 2023, SASB Standards were incorporated into the ISSB framework, specifically IFRS S1 (General Requirements) and IFRS S2 (Climate-related Disclosures). The ISSB standards focus on single materiality – reporting on sustainability matters that affect enterprise value. Over 20 jurisdictions have committed to adopting or aligning with ISSB standards, making them the most likely candidate for a global baseline of investor-grade ESG disclosure.
TCFD Explained
The Task Force on Climate-related Financial Disclosures (TCFD) was established by the Financial Stability Board in 2015 and published its recommendations in 2017. TCFD structured climate reporting around four pillars: governance, strategy, risk management, and metrics and targets. By 2023, TCFD-aligned reporting was mandatory or recommended in over 20 jurisdictions. In October 2023, the TCFD was formally disbanded, with its monitoring responsibilities transferred to the ISSB. The TCFD framework lives on through IFRS S2, which fully incorporates and builds upon TCFD's recommendations.
CSRD Explained
The EU Corporate Sustainability Reporting Directive (CSRD), which entered into force in January 2023, is the most comprehensive mandatory ESG reporting regulation globally. It requires companies to report using the European Sustainability Reporting Standards (ESRS), which adopt a double materiality perspective. CSRD applies to all large EU companies and listed SMEs – roughly 50,000 organisations – with phased implementation from 2024 to 2026. Non-EU companies with significant EU revenue (over EUR 150 million) will also fall under scope from 2028. Reports must be digitally tagged using XBRL and are subject to limited assurance by an auditor.
How to Choose the Right Framework
Choosing the right framework depends on three factors: regulatory requirements, stakeholder expectations, and organisational capacity. EU-based companies should start with CSRD and ESRS as their legal obligation. Companies seeking global investor alignment should adopt ISSB standards. Organisations wanting to report comprehensively on their societal impact – not just financial materiality – should use GRI. In practice, many organisations use multiple frameworks simultaneously, as GRI and ISSB are designed to be interoperable, with published guidance on using them together.
Framework Convergence Trends
The ESG reporting ecosystem is rapidly consolidating. The merger of SASB into ISSB, the disbanding of TCFD into ISSB, and the formal interoperability agreement between GRI and ISSB all signal a move toward fewer, more authoritative standards. The EU's ESRS has been developed with explicit mapping to both GRI and ISSB. For organisations, this convergence means that investing in one robust reporting process today will increasingly satisfy multiple disclosure requirements. The direction of travel is clear: mandatory, audited, digitally tagged sustainability reporting is becoming the global norm.
Frequently Asked Questions
Which ESG framework should I use?+
It depends on your regulatory obligations and audience. EU companies must use CSRD/ESRS. For global investor-focused reporting, ISSB (IFRS S1 and S2) is the emerging baseline. For comprehensive impact reporting, GRI remains the most widely adopted standard. Many organisations use multiple frameworks simultaneously.
What is the difference between GRI and SASB?+
GRI uses a double materiality approach, reporting on both business impact on society and sustainability risks to the business. SASB (now part of ISSB) focuses on single materiality – only topics that are financially material to investors. GRI is broader in scope, while SASB/ISSB is more targeted to capital markets.
Is CSRD mandatory?+
Yes, for companies in scope. CSRD applies to all large EU companies and listed SMEs, covering approximately 50,000 organisations. Non-EU companies generating over EUR 150 million in EU revenue will also be required to comply from 2028. Reporting uses the European Sustainability Reporting Standards (ESRS) and must be audited.
What replaced TCFD?+
The TCFD was formally disbanded in October 2023, with its monitoring responsibilities transferred to the International Sustainability Standards Board (ISSB). The TCFD's recommendations are fully incorporated into IFRS S2 (Climate-related Disclosures), ensuring continuity for organisations already reporting under TCFD.
How do ESG frameworks work together?+
Major frameworks are increasingly interoperable. GRI and ISSB have published joint guidance on using their standards together. The EU's ESRS incorporates elements of both GRI and ISSB. In practice, this means organisations can build a single data collection process that feeds into multiple reporting outputs.
Do small businesses need to use ESG frameworks?+
While most ESG mandates target large companies, SMEs are increasingly affected through supply chain requirements. The EU has published voluntary ESRS standards for SMEs (VSME), and many large companies require ESG data from suppliers. Starting with a simplified framework can help SMEs prepare for growing expectations.