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The world of corporate sustainability reporting is not for the faint of heart. Global Reporting Initiative (GRI) Professional Certification. IntegratedReporting (IR) Fundamentals of IntegratedReporting Certificate. To make things even more complicated, the landscape is changing at a rapid pace.
Consolidated ESG standards: Recently, four leading ESG standards organizations — GRI, the Sustainability Accounting Standards Board (SASB); CDP (formerly the Carbon Disclosure Project); the Carbon Disclosure Standards Board (CDSB); and the International IntegratedReporting Council (IIRC) — declared their intent to collaborate.
General sustainability definitions Climate risk Two types of climate risks exist, transition risks and physical risks. The ValueReporting Foundation (VRF) was further consolidated into the International Sustainability Standards Board (ISSB) in 2022. Let’s get into it.
Sustainable capitalism resists short-term thinking and endeavors to maximize long-term economic valuecreation. This definition is in line with the three pillars of sustainable development (economic, social, and environmental). . However, it remains focused on profit maximization. The circular economy.
Increased stakeholder awareness of the impact corporations have on the environment means investors are increasingly making decisions based on non-financial data, and supporting practices that result in long-term valuecreation. Better MI and reporting around ESG can also help manage downside risk.
The global standards are based on an ‘enterprise valuecreation’ or financial materiality approach, in which sustainability impacts are measured in terms of impacts on the financial position and prospects of the company itself. Therefore it is integral to the aim of enterprise valuecreation in any case.
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