MBA148- The metrics and indicators used to measure the impact of s

Metrics & Indicators

Double Materiality

Reporting Instruments

Introduction

Sustainability reporting refers to the practice of disclosing information about a company's environmental, social, and governance performance. It provides stakeholders with a view of an organisation's efforts and progress towards sustainable development. This type of reporting may include a wide range of topics, including energy usage, carbon emissions, water consumption, waste management, labour practices, community engagement, and ethical governance. Multiple frameworks and standards guide companies in their sustainability reporting efforts. They also help stakeholders to assess and compare the sustainability performance of different organisations. Click below for key categories of metrics and indicators which will help you navigate the complexities of sustainability reporting.

metrics and indicators

Metrics & Indicators

Reporting Instruments

Double Materiality

Introduction

Over 800 mandatory and voluntary reporting and assessment tools in sustainable development have been issued by governments and public agencies

What is the difference? - Click the boxes to find out

Frameworks

Standards

Certification

Indexes & Ratings

Metrics & Indicators

Reporting Instruments

Double Materiality

Introduction

Standards

• Most comprehensive requirements
• Specific reporting criteria = comparable data
• Usually developed independently after consultations with the public
• No 'good' or 'bad’ set of standards

Indexes & Ratings

Certification

Frameworks

Metrics & Indicators

Reporting Instruments

Double Materiality

Introduction

Indexes & Ratings

• Usually based on ‘assessment’ (often quantitative and/or risk assessment)
• Information used for determining the result of assessment, collected based on company’s data.
• Rely on information, benchmarked to standards and frameworks.

Frameworks

Standards

Certification

Metrics & Indicators

Reporting Instruments

Double Materiality

Introduction

Frameworks

• Guiding principles
• Define how to formulate a specific topic and share specific information
• Usually do not assume specific reporting obligations or requirements for reporting data

Indexes & Ratings

Standards

Certification

Metrics & Indicators

Reporting Instruments

Double Materiality

Introduction

Certification

• Awarded by a third party after assessment
• Can be thematic or industry-specific
• Each certification has its own method of assessing organisation’s compliance with criteria
• Certification could be used as a branding tool

Indexes & Ratings

Frameworks

Standards

Double Materiality

Metrics & Indicators

Double Materiality

Reporting Instruments

Introduction

In the evolving corporate sustainability practices, ‘double materiality’ has emerged as one of the important concepts, shaping how companies assess and report their impacts

Double materiality is one of the most debated issues in the discussion of sustainability reporting...

Metrics & Indicators

Double Materiality

Reporting Instruments

Introduction

...unlike traditional view of materiality, which focuses solely on financial aspects as shown

Materiality

Inward impact "financial materiality"

Reporting on traditional financial materiality, i.e., the ESG metric's impact on the company

Reporting Instruments

Double Materiality

Introduction

Metrics & Indicators

double materiality broadens the perspective to include both the financial impacts of sustainability issues on an organisation and the organisation’s impacts on environmental and social dimensions.

Metrics & Indicators

Reporting Instruments

Double Materiality

Introduction

Outward impact (inside-out)

Environmental and social materiality

Double Materiality

Financial materiality

Inward impact (outside-in)

Reporting Instruments

Metrics & Indicators

Reporting Instruments

Double Materiality

Introduction

Here are the three main reporting instruments and their various characteristics