ESG Reporting Manual

Contents of the ESG Reporting Manual

The ESG Reporting Manual’s structure is based on the European CSRD and incorporates the IFRS, GRI and ESRS.

Following is a list of contents with links to sections of this website for further information. Happy reading!

 

PART 1: Designing Your ESG Reporting System

 

1.Introduction to ESG Reporting

1.1 ESG Reporting Relevancy

1.2 Choosing the Right ESG Standard

1.3 ESG Reporting for Consolidated Entities

1.4 Solving the Resource Dilemma: Voluntary vs Statutory in 5 Questions

1.5 Understanding Your ESG Report Audience

1.6 How to Begin – Your Green Team

1.7 Integrated Due Diligence Process

1.8 ESG Report Costs

1.9 Qualitative Information Characteristics

• Comparability and Consistency
• Faithful Representation
• Verifiability
• Understandability
• Relevancy
• Meaningfulness

 

2. Stakeholder Engagement

2.1 How to Complete a Stakeholder Assessment in 5 Steps

• STEP 1: Benchmarking and Governance
• STEP 2: Identifying Your Stakeholders
• STEP 3: Engagement Plan and Implementation
• STEP 4: Engagement Analysis
• STEP 5: Sharing Information

2.2 Overcoming Value Chain Bottlenecks

 

3. Single and Double Materiality Assessment

3.1 Contextualisation and Materiality

3.2 Severity and Irremediable Character

3.3 Specific Metrics Identification

3.4 Single and Double Materiality

3.5 Impact Materiality

3.5.1 Physical Impact Materiality Assessment

3.5.2 Financial Impact Materiality Assessment

3.6 Identification of information sources and alignment to relevant SDGs

3.7 Resilience and Scenario Analysis

3.8 Aggregating and Reporting Materiality Assessments

3.9 Materiality Report and Action Plan

3.10 Materiality assessment – how to leverage other sources?

 

4. Data Collection and Analysis

4.1 Information relating to financial statements

4.2 Common problems with data

4.3 ESG Software

4.4 Assurance

 

PART 2: ESG Reporting Disclosures             

 

5. Minimum and General Disclosures

5.1 Minimum Disclosure Requirements (MDR)

5.1.1 MDR-P – MINIMUM DISCLOSURE: Policies adopted to manage material sustainability matters

5.1.2 MDR-A – MINIMUM DISCLOSURE: Actions and resources in relation to material sustainability matters

5.1.3 MDR-M – MINIMUM DISCLOSURE: Metrics in relation to material sustainability matters

5.1.4 MDR-T – MINIMUM DISCLOSURE: Tracking effectiveness of policies and actions through targets

5.1.5 MINIMUM DISCLOSURE: If targets have not been set or are missing

 

5.2 General Disclosures

5.2.1 BP-1: General basis for preparation of the sustainability statement

5.2.2 BP-2: Disclosures in relation to specific circumstances

5.2.3 GOV-1: The role of the administrative, management and supervisory bodies

5.2.4 GOV-2: Management Reporting of Sustainability

5.2.5 GOV-3: Integration of sustainability-related performance in incentive schemes

5.2.6 GOV–4: Statement on Sustainability Due Diligence

5.2.7 GOV–5: Risk Management and Internal Control Systems

5.2.8 SBM-1: Strategy, business model and value chain

5.2.9 SBM-2: Interests and Views of Stakeholders

5.2.9 SBM-3: Material Impacts, Risks and Opportunities

5.2.10 IRO-1: Identify and assess material impacts, risks and opportunities

5.2.12 IRO-2: Disclosure Requirements Statement

 

5.3 Risk and Opportunity Indicator Metrics

5.3.1Total Expenditures on Research & Development (R&D) (ESRS2 IRO-1)

5.3.2 Damage Ratio (E1-1, E1-9, E2-6, E3-5, E4-6)

5.3.3 Vulnerability Index (E1-1, 1-9, E2-6, E3-5, E4-6)

5.3.4 Adaptive Capacity (E1-1, E1-9, E2-6, E3-5, E4-6)

5.3.5 Loss Event Frequency (LEF) (E1-1, E1-4, E1-9, E2-6, E3-5, E4-6)

5.3.6 Loss Event Magnitude (LEM) (E1-1, E1-4, E1-9, E2-6, E3-5, E4-6)

5.3.7 Annualised Loss Expectancy (ALE) (E1-1, E1-4, E1-9, E2-6, E3-5, E4-6)

5.3.8 Exposure at Risk (EAR) (E1-1, E1-9, E2-6, E3-5, E4-6)

5.3.9 Business Downtime (E1-1, E1-9, E2-6, E3-5, E4-6, S1-4)

 

6. E1: Climate Change

6.1 Comprehensive transition plan for climate change mitigation (E1-1, 2, 3)

6.2 Scenario and Resilience Analysis

6.3 Target Setting, Mitigation Pathway and Transition Planning

6.4 Monitoring and Reporting Progress

6.4.1  Data Collection and Management

6.4.2. Reporting and Public Disclosure

6.4.3 Performance Evaluation and Continuous Improvement

6.5 Scope 1 and 2 GHG Emissions (ESRS2-IRO1, E1-4, E1-6, E1-7)

6.6 Scope 3 GHG Emissions (ESRS 2 IRO 1, E1-4, E1-6, E1-7)

6.7 Energy Mix and Consumption (ESRS2 IRO-1, E1-4, E1-5)

6.8 Emissions Intensity per Net Revenue / Unit of Production / Service (ESRS 2 IRO-1, E1-6)

6.9 GHG Reduction Targets (E1-1, E1-4)

6.10 Energy Efficiency Improvements (E1-3, E1-5)

6.11 GHG Emissions Intensity Reduction (E1-1, E1-3, E1-4, E1-7)

6.12 Internal Carbon Pricing (Shadow Pricing) (E1-8)

6.13 Green Investment (E1-2, E1-3, E1-9)

6.14 Carbon Tax (E1-1, E1-4, E1-8, E1-9)

6.15 Cap-and-Trade System (E1-1, E1-4, E1-8, E1-9)

6.16 Stranded Asset Risk (E1-1, E1-9)

6.17 Return Period (E1-1, E1-4, E1-9)

 

7. E-2 Pollution 333

7.1 Pollution Assessment Methodology

7.1.2 Actions to Prevent and Mitigate Negative Impacts

7.1.3 Adaptation to a Sustainable Economy

7.1.4 Risks and Opportunities Related to Pollution Impacts

7.1.5 Financial Effects of Pollution Impacts

7.2 Hazardous Waste Treatment (ESRS 2 IRO 1, E2-5, E5-2)

7.3 Ozone Depleting Substances and Chemicals (E2-4, E1-6)

7.4 Air Quality Index (E2-4)

7.5 Wastewater Treatment Efficiency (E2-1, E2-4, E5-1)

7.6 Chemical Spills and Releases (E2-4, E2-5)

7.7 Emissions of Hazardous Air Pollutants (E2-4, E2-5)

7.8 Water Pollution Incidents (E2-4, E3-2)

7.9 Soil Contamination Levels (E2-4, E4-5)

7.10 Emissions of Volatile Organic Compounds (VOCs) (E2-4, E2-5)

7.11 Noise Pollution Levels (E2-4)

7.12 Evaluating Cost of Pollution Abatement (E2-6)

7.13 Financial Provisioning for Pollution Liabilities (E2-6)

 

8. E-3 Water and Marine

8.1 Water and Marine Assessment Methodology

8.2 Water Recycling and Reuse (E3-1, E3-2)

8.3 Eutrophication Levels (E3-1)

8.4 Water Usage Efficiency (E3-4)

8.5 Water Quality Index (3-1)

8.6 Marine Protected Area Coverage (E3-1, E3-2)

8.7 Water Consumption Reduction Targets (E3-3)

8.8 Coastal Erosion Rates (E3-2, E3-5)

8.9 Water Scarcity Risk Assessment (E3-1, E3-5)

8.10 Fish Stock Health (E3-1, E3-2)

8.11 Water Footprint (E3-3, E3-4)

8.12 Coral Reef Health Index (E3-1)

 

9. E-4 Biodiversity

9.1 Biodiversity and Ecosystem Assessment Methodology

9.2 Protected Area Coverage (E4-2)

9.3 Biodiversity Performance Score (E4-1, E4-2, E4-5)

9.4 Habitat Restoration Efforts (E4-1, E4-3)

9.5 Species Conservation Efforts (E4-1, E4-3)

9.6 Invasive Species Management (E4-2)

9.7 Ecological Connectivity (E4-1, E4-3)

9.8 Sustainable Agriculture Practices (E4-1, E4-2, E5-1)

9.9 Sustainable Fisheries Practices (E4-2)

9.10 Conservation of Critical Ecosystems (E4-3)

9.11 Ecosystem Services Valuation (E4-6)

 

10. E-4 Circular Economy

10.1 Circular Economy Assessment Methodology

10.2 Life Cycle Assessment (LCA) and Circularity Indicators (E5-1, E5-4, E5-5, E5-6)

10.3 Reduction of Waste Generation by Reuse, Re-manufacture, and Recycle (ESRS 2 IRO-1, E5-1, E5-2, E5-3)

10.4 Design for Sustainability (E5-1)

10.5 Supply Chain Transparency (E5-1)

10.6 Eco-Design Integration (E5-1)

10.7 Closed-Loop Supply Chain Integration (E5-1)

10.8 Product Life Extension (E5-1, E5-3)

10.9 Material Recovery and Recycling Efficiency (aka Material Circularity Rate) (E5-1, E5-3, E5-6)

10.10 Resource Efficiency Ratio (E5-2, E5-3)

 

11. S1: Own Workforce

11.1 Own Workforce Methodology

11.1.1 Worker Engagement Index (S1-2)

11.1.2 Frequency of Worker-Management Communication(S1-2)

11.2 Contingent and subcontracted workers (S1-7)

11.3 Long-term work contracts (S1-6, S1-11)

11.4 Union density and collective bargaining coverage (S1-8)

11.5 Proportion of women in managerial positions (S1-9)

11.6 Number and percentage of women board members (S1-9)

11.7 Living wage gap (S1-10)

11.8 Social Security Coverage Rate (S1-11)

11.9 Social Protection Expenditure (S1-12)

11.10 Hiring of Vulnerable Groups (S1-12)

11.11 Disability Inclusion in Workforce(S1-12)

11.12 Accessibility of Facilities (S1-12)

11.13 Average Hours of Training per Year per Employee (S1-13)

11.14 Expenditure on Employee Training per Year per Employee (S1-13)

11.15 Frequency/incident rates of occupational injuries (S1-14)

11.16 Expenditures on Employee Health and Safety as a Proportion of Revenue (S1-14)

11.17 Employee turnover rate (S1-15, G1-1)

11.18 Gender pay gap: Equality of remuneration (S1-16)

11.19 Employee Wages and Benefits as a Proportion of Revenue, with Breakdown by Employment Type and Gender (S1-10, S1-16)

11.20 CEO-to-worker pay ratio (S1-16)

11.21 Distribution of surplus/profits (S1-16)

11.22 Fines Paid or Payable Due to Settlements (S1-17, G1-4)

11.23 Harassment and discrimination at the workplace (S1-17, G1-1)

 

12. S2 Value Chain Workers

12.1 Value Chain Workers Assessment Methodology

12.2 Supplier compliance with labour laws and regulations (S2-1)

12.3 Labour rights and freedom of association in the supply chain (S2-1)

12.4 Percentage of workers in the supply chain covered by collective bargaining agreements (S2-1)

12.5 Supplier diversity and inclusion metrics (S2-1, S2-5)

12.6 Supplier employee wages and benefits compared to living wage standards (S2-1, S2-5)

12.7 Supplier training and capacity building programs (S2-2)

12.8 Health and safety incidents reported by suppliers (S2-3)

12.9 Supplier employee satisfaction and well-being indicators (S2-3)

12.10 Worker empowerment programs or initiatives in the supply chain (S2-4)

12.11 Disability Inclusion in Value Chain Workforce (S2-5)

12.12 Supplier turnover rates (S2-5)

 

13. S3 Affected Communities

13.1 Affected Communities Assessment Methodology

13.2 Community engagement and consultation (S3-1)

13.3 Community Investment (S3-1, S3-2)

13.4 Investments in community development projects (S3-1, S3-5)

13.5 Local procurement and supplier diversity (S3-1)

13.6 Percentage of Local Procurement (S3-1, S3-2, E5-2)

13.7 Community satisfaction with the organisation’s presence and activities (SBM-3, S3-3)

13.8 Stakeholder grievance mechanism effectiveness (SBM-3, S3-3)

13.9 Social and economic impacts on local communities (S3-4)

13.10 Community health and safety incidents related to the organisation’s operations (S3-4, SBM-3)

13.11 Indigenous and cultural heritage preservation (S3-4)

13.12 Contribution to local employment and job creation (S3-4)

13.13 Community investment and social infrastructure development (S3-4)

13.14 Local Economic Impact S3-4

 

14. S4 Consumers and End-users

14.1 Consumer and End-User Assessment Methodology

14.2 Product safety and quality assurance (S4-1)

14.3 Consumer data privacy and security (S4-1)

14.4 Product labelling and transparency (S4-1, S4-3)

14.5 Customer satisfaction and feedback (S4-2)

14.6 Customer education and awareness (S4-2)

14.7 Responsible marketing and advertising practices (S4-2, S4-4)

14.8 Product recalls and responsiveness (S4-3)

14.9 Product lifecycle management and end-of-life considerations (S4-4)

14.10 Product innovation and sustainable design (S4-4)

14.11  Product accessibility and affordability (S4-4, S4-5)

 

15. G1: Business Conduct

15.1 Stakeholder Participation (G1-1)

15.2 Legitimation of Management (G1-1)

15.3 Board Members by Age Range (G1-1)

15.4 Number of Board Meetings and Attendance Rate (G1-1)

15.5 Term Limits for Board of Directors (G1-1)

15.6 Attendance at Annual General Meetings (G1-1)

15.7 Democratic Elections (G1-1)

15.8 Number of Meetings of Audit Committee and Attendance Rate  (G1-1, ESRS 2 GOV-1)

15.9 Access to remedy (G1-1, S1-3)

15.10 Employee turnover rate (G1-1, S1-15)

15.11 Responsible and Ethical Sourcing (G1-2, GOV-3)

15.12 Average Hours of Training on Anti-Corruption Issues per Year per Employee (G1-3)

15.13 Corruption-Related Fines Paid or Payable due to Settlements (G1-4)

15.14 Corporate Political Influence (G1-5)

15.15 Days Sales Outstanding (G1-6)

15.16 Collection Costs (G1-6)

15.17 Payment Terms Compliance (G1-6)

15.18 Days Payable Outstanding (G1-6)

15.19 Supplier Payment History(G1-6)

15.20 Tax Gap

 

16. Report Formation and Publication

16.1 The Purpose of your ESG Report

16.2 Drafting your ESG Report

16.3 Report Structure

16.4 Format and Accessibility

16.5 National Implementation & Penalties

16.6 ESG Report Examples

European legal references

Other References