The International Organization for Standardization (ISO) unveiled new international guidance at COP29 to help organisations navigate the complex Environmental, Social, and Governance (ESG) landscape. This freely available resource is designed to aid compliance with disclosure requirements and improve the measurement, reporting, and communication of ESG activities.
ESG regulations have surged globally by 155% over the past decade, driven by frameworks such as the EU’s Corporate Sustainability Reporting Directive (CSRD), the UK’s Modern Slavery Act, and the ISSB’s IFRS S1 and S2 disclosure standards. Against this backdrop, the ISO ESG Implementation Principles aim to simplify and standardise ESG reporting for organisations across all sectors and sizes, including small businesses, multinational corporations, ESG consultants, academia, research institutions, and NGOs.
The guidance provides a standardised structure to support organisations in embedding ESG principles into their operations, regardless of their maturity in sustainability practices. It facilitates effective and transparent ESG performance management, encouraging organisations to adopt a holistic approach to addressing environmental impacts, social considerations, and governance practices. This approach is expected to accelerate progress toward sustainable growth and balanced development.
The principles address critical areas such as carbon footprinting, waste management, diversity, human rights, transparency, and regulatory compliance. By offering actionable steps, the document supports organisations in integrating ESG principles into their culture and aligning their goals with global sustainability ambitions.
The ISO ESG Implementation Principles were developed through a collaborative effort involving national standards bodies, including the British Standards Institution (BSI), the Standards Council of Canada (SCC), and the Brazilian Association of Technical Standards (ABNT). The process incorporated insights from over 1,900 industry experts representing 128 countries.
These principles provide a high-level framework to integrate existing ESG requirements, establish measurable Key Performance Indicators (KPIs), and evaluate organisational maturity in ESG practices.
The ISO ESG Implementation Principles are designed to enhance management of ESG performance, support consistent, comparable, and reliable ESG reporting across existing disclosure frameworks, foster interoperability by aligning with global reporting standards to create a harmonised approach to ESG compliance and, promote global consistency in communicating sustainability efforts, enabling organisations to convey their ESG ambitions effectively.
Sergio Mujica, Secretary-General, ISO said, “ISO’s ESG implementation principles will foster a lasting culture of ESG that will bring real value to organisations, governments, investors, and consumers. These guidelines will help accelerate the adoption of sustainable business practices, which benefits diverse communities and the environment.”
Mujica added, “Importantly, these guidelines can be used by all organisations in all sectors and could particularly benefit SMEs and organisations in developing countries. We are proud of this initiative, and to be launching it during COP29.”
