Sustainability Reporting Frameworks A Comparative Analysis of Reporting Standards and their Implications for Accounting and Reporting

Abstract

The world is facing unprecedented environmental and social challenges, and companies are being 
held accountable for their impact on society and the environment due to their industrial activities. 
To address this issue, various sustainability reporting frameworks have emerged, but their 
effectiveness and implications for accounting and reporting in policy formulation have not been 
fully understood. This study aims to bridge this knowledge gap by analyzing and comparing three 
prominent frameworks namely; the Global Reporting Initiative (GRI), the Sustainability 
Accounting Standards Board (SASB), and the Task Force on Climate-related Financial Disclosures 
(TCFD) standards as the basis for assessment. The interpretive and analytic methodologies were 
used, drawn upon existing literature on the subject. The findings of this study indicate that the ESG 
frameworks are still fragmented and complex, with each framework having unique requirements 
and often overlap exist between frameworks, making it difficult to verify compliance. Conversely, 
companies take into account the preferences of their stakeholders and the ESG frameworks that 
align with their stakeholders’ needs and expectations. Hence, it is pertinent to recommends 
integrating the GRI and SASB, GRI and TCFD, SASB and TCFD, or all three frameworks. As 
such the policy implications of this approach is that it would provide a more comprehensive view 
of the sustainability initiatives of companies which underscores the need for companies to adopt a 
more proactive approach to sustainability reporting by implementing a universal standard and 
integrating multiple frameworks. By doing so, companies can improve their sustainability 
performance, meet stakeholder expectations, and contribute to a more sustainable future for all.