The UN Sustainable Development Goals
In 2015, all Member States of the United Nations adopted the 2030 Agenda for Sustainable Development. Seventeen Sustainable Development Goals (SDG) are the core of the agenda, to urge all countries to take action in global partnership and provide blueprints for peace and prosperity for people and the planet. The SDGs are now being implemented in municipalities, government organizations, and public and private companies worldwide. The goals recognize that, in order to end poverty and other forms of deprivation, we must combine efforts to enhance education and health, reduce inequality, and boost economic growth at the same time we are tackling climate change and protecting our forests and oceans. The SDGs are the result of decades of effort by the UN and member countries, for example with the adaption of major agreements such as the Paris Agreement on Climate Change, the Sendai Framework for Disaster Risk Reduction, and Addis Ababa Action Agenda on Financing for Development.
The Global Reporting Initiative (GRI) Standards
The Global Reporting Initiative (GRI) is an independent, international organization that offers a common language for large, small, private and public organizations to report on their sustainability efforts. GRI standards are in three categories: environmental, social, and economic initiatives. The GRI Standards’ objective is to help organizations be transparent and take responsibility for their impact. Standards cover topics including anticorruption, biodiversity, water, occupational health and safety, for example.
The UN Global Compact
The UN Global Compact is the world’s largest corporate sustainability initiative. It invites companies worldwide to align their strategies with the universal principles of human rights, labor, environment, and anticorruption. It currently has signatories from more than 160 countries representing organizations of all sizes and sectors. Documented, effective sustainability measures give businesses a competitive advantage, promote brand trust, and attract investors.
WEF Reporting Framework
In 2020, the World Economic Forum (WEF) launched an ESG framework that defines common metrics for sustainable value creation. More than 140 companies have committed to the International Business Council (a WEF forum) to align their SDG strategies with the long-term goals of society. The framework has four pillars: Principles of Governance, Planet, People, and Prosperity. Under the four pillars, 21 core and 34 expanded metrics and disclosures have been established.
The Nasdaq ESG Reporting Guide
Nasdaq ESG Reporting is a voluntary program introduced by Nasdaq in 2017 and updated in May 2019. The guide, which is for private and public companies, helps them navigate evolving ESG standards. The Nasdaq Reporting Guide includes 30 metrics divided into three sections: Environment, Social, and Corporate Governance. Participation is voluntary, and the framework provided is not intended to compete with other ESG frameworks.
