Common Metrics for CSR - 2022 Editorial by Donna Ramsammy

Common Metrics for ESG

In 2020, the World Economic Forum’s International Business Committee published 22 ESG metrics with a vision to standardise corporate reporting under a ‘stakeholder capitalism’ approach. The three ESG pillars provide a common framework for social engagement, and performance metrics by which countries and businesses can measure their impact on society through a more consolidated approach to standards and reporting frameworks.

The Forum has worked with auditing firms which include Deloitte, EY, KPMG and PwC to establish universal metrics and standards of disclosure. Over 150 companies globally have demonstrated support and several others have expressed interest in being part of the change. Since the Sustainable Development Impact Meetings in September 2022, over 130 companies have already included the Stakeholder Capitalism Metrics in their mainstream reporting materials, including annual reports and sustainability reports.

ESG offers a focused framework through which governments, businesses and civil society can collaborate on serious global challenges, with a shared understanding of their moral obligation and interdependence in creating economic growth while protecting and safeguarding people and planet.

ESG can mean different things to different companies. So here are a few broad guidelines we asked our corporate partners to consider as they shaped their stories for this edition.

The Environment Component:

Addresses how the business interacts with the natural environment, the impacts of its operations, and the actions the company takes to mitigate negative effects. This would include impacts, such as greenhouse gas (GHG) emissions, raw material use, land use, water consumption, pollution and waste creation, and the company’s supply chain activities.

The World Environment Fund (WEF) suggests alignment with six of the SDG goals:

•Clean water and sanitation

•Affordable and clean energy production

•Responsible resource consumption and Climate action

•Life on land

•Life below water

The Social Component:

Addresses how business activities affect people — from its own workforce to customers, local communities and those who work in its extended supply chain. This includes people impacts such as fair pay and safe working conditions, workforce health and wellbeing, diversity, equality, and inclusion, safeguarding against child labour and slavery, and anti-corruption measures. It also recognizes a business’s obligation to support society proactively through initiatives such as education programmes and upskilling employees.

These align with five SDG goals.

•No poverty

•Good health and wellbeing

•Quality education

•Gender equality

•Reduced inequalities

Donna Ramsammy - Editor-in-Chief

The World Environment Fund (WEF) suggests alignment with six of the SDG goals: