FLUKE
Kimball Electronics
Tolomatic
Industrial Scientific
AHEAD
roboception
FLUKE
Kimball Electronics
Tolomatic
Industrial Scientific
AHEAD
roboception
By Acquis Compliance | Fri Dec 9 2022 | 5 min read

Table of Contents

What is Environmental, Social, and Governance (ESG) ?

ESG refers to the three central factors in measuring the sustainability and ethical impact of an investment in a company or business. These factors are:

  • Environmental: how a company performs in terms of environmental protection and management of environmental risks
  • Social: how a company performs in terms of its social and economic relationships with stakeholders, such as employees, customers, and communities
  • Governance: how a company is managed and directed, including factors such as executive pay and accountability

How can I start ESG reporting ?

To start the ESG reporting process, a manufacturing company can take the following steps:

i. Identify the key ESG issues that are relevant to the company's operations and stakeholders. This might include issues such as

  • Energy use
  • Water conservation
  • Waste management
  • Supply chain practices.

ii. Develop metrics and targets for measuring and improving the company's performance on these issues. This might include

  • Setting targets for reducing greenhouse gas emissions
  • Improving working conditions in the supply chain
  • Increasing diversity and inclusion in the workforce

iii. Collect and analyze data on the company's performance on these issues, using tools such as

  • Sustainability reporting frameworks and
  • External audits

iv. Communicate the company's ESG performance to stakeholders, such as investors, employees, and customers. This might include

  • Publishing an annual sustainability report
  • Providing information on the company's website
  • Engaging with stakeholders through events and workshops

v. Continually monitor and improve the company's ESG performance over time, including setting new targets and implementing programs and initiatives to drive progress. This might include working with industry groups and other organizations to share best practices and drive change across the industry.

ESG Reporting Frameworks & Standards

ESG frameworks and standards are both tools that companies can use to guide their reporting on environmental, social, and governance (ESG) issues. However, there are some key differences between the two.

ESG Frameworks are typically broader in scope and provide a high-level overview of the key sustainability issues that companies should consider in their reporting. They often include guidelines on what information to include in an ESG report and how to present it, but they do not provide detailed requirements or metrics for measuring and reporting on specific ESG topics.

There are several frameworks that companies can use for ESG reporting, including:

  • Global Reporting Initiative (GRI)
  • Integrated Reporting Framework
  • Sustainability Accounting Standards Board (SASB)
  • Task Force on Climate-related Financial Disclosures (TCFD)
  • Carbon Disclosure Project (CDP)

ESG Standards, on the other hand, are more specific and focused on particular aspects of sustainability. They often include detailed requirements and metrics for measuring and reporting on specific ESG topics, such as greenhouse gas emissions or workplace safety. These standards are often developed by industry groups or regulatory bodies and can be mandatory or voluntary.

Some examples of ESG reporting standards include:

  • GRI Standards: A globally recognized framework for reporting on a range of sustainability issues
  • SASB: A framework for reporting on material sustainability issues in the financial sector
  • TCFD: A framework for reporting on climate-related risks and opportunities
  • ISO 26000: A globally recognized standard for corporate social responsibility
  • ISO 14001: A standard for environmental management systems

In summary, ESG frameworks provide a general overview of sustainability reporting, while ESG standards provide specific guidance on how to measure and report on specific ESG topics. Companies can use both frameworks and standards to guide their ESG reporting and ensure that it is comprehensive and compliant with industry best practices.

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Exploring ESG: A Guide for Manufacturing Companies on How to Start Reporting

ESG reporting involves disclosing Environmental, Social, and Governance data—including metrics on emissions, resource use, working conditions, and governance practices—to meet investor, regulator, and stakeholder expectations. Leading frameworks like GRI and SASB/ISSB help ensure reports are credible and impactful. Governance is now as important as environmental compliance
Reports should cover: Environmental: Scope 1–3 emissions, energy use, water and waste, Social: workforce practices, human rights in supply chains, Governance: board structure, ethics and compliance policies, plus financial materiality aligned with SASB/ISSB.
Small to mid-sized manufacturers often begin with SASB for industry-specific financial materiality. Combining SASB + CDP supports deeper climate and emissions disclosures. Large manufacturers typically integrate GRI, TCFD, ISSB S2, and CDP for full ESG compliance.
Start with a materiality assessment—identifying key ESG issues aligned with stakeholder and investor needs. Then, set targets (e.g. emissions reductions), embed them into corporate strategy, and ensure cross-team collaboration (finance, supply chain, operations).
Use centralized digital platforms to capture and validate ESG data—especially Scope 1–3 emissions, resource use, and supplier disclosures. Implement internal controls, standardized methodologies, and consider independent verification or assurance
Under CSRD: Reporting begins in 2025 for FY 2024 data for large (>250 employees or >€50M turnover) EU companies, Smaller public companies follow in 2026 and 2027. Draft EU “Omnibus” changes and the “stop‑the‑clock” directive may delay some waves until 2028–29.
Challenges include: Inconsistent supplier data for Scope 3, Lack of unified reporting platform, Insufficient integration across departments, Difficulty linking ESG metrics to business performance. Addressing these early enables audit readiness and avoids greenwashing risks.