free counter

ESG Rankings

The GRI Perspective: Demystifying the planet of ESG Benchmarks

What’s the role of the ESG ratings industry, do they actually determine whether companies are sustainable or not and how will future changes on the planet sustainability reporting affect them?

The GRI Perspective

The GRI Perspective

They are a few of the issues explored in the most recent edition of The GRI Perspective: The ABC of ESG ratings an invitation for common ground. Lifting the lid on a grouping of organizations whose role in the sustainability disclosure landscape is frequently misunderstood, it introduces the types and functions of the ratings firms on the market and just why questions concerning the consistency and transparency of the ESG rankings they produce persist.

Bronte Klein, Senior Manager Executive Affairs, GRI, said:

ESG ratings have a significant role in benchmarking sustainability information, that may help investors to assess and contrast the performance of companies against ESG metrics. Yet, with regards to what these agencies actually rate, the overwhelming focus is on sustainability risk rather than impact.

Getting started off with whether a small business is taking accountability because of its socio-economic and environmental impacts on the planet, and thereby adding to sustainable development, can’t be achieved utilizing a financial lens alone. ESG ranking firms are beginning to realize this, that is reflected by increased attention on impact materiality, as enabled by reporting utilizing the GRI Standards.

Achieving a worldwide baseline for corporate sustainability information happens to be being progressed by way of a cooperation agreement between GRI and the IFRS International Sustainability Standards Board. Signposting the best way to a better reporting system that delivers consistent data on both sustainability impacts and risks, this collaboration is very good news for stakeholders and information users, including ESG rankers.

The GRI Perspective is really a regular briefing series, launched in January 2022, covering topical themes from the planet of sustainability reporting. Focus areas in the last seven issues include human rights reporting, stakeholder capitalism, lobbying, tax transparency and much more.

Global Reporting Initiative (GRI) may be the independent, international organization that helps businesses along with other organizations take responsibility because of their impacts, by giving the global common language to report those impacts. The GRI Standards are developed by way of a multi-stakeholder process and provided as a free of charge public good.

Read More

Related Articles

Leave a Reply

Your email address will not be published.

Back to top button

Adblock Detected

Please consider supporting us by disabling your ad blocker